Cheese and milk producer Dairy Crest served up a robust set of half year figures and issued an upbeat full year outlook as it offset higher input costs with increased selling prices.
The Cathedral Cheese maker said adjusted pre-tax profit rose 9% to £43.7m in the six months ended 30 September 2011 as higher profits in Spreads and Cheese offset lower Dairies profits. Revenue increased 2% to £796.2m. Milk&more weekly sales rose to £1.2m.
The maker of Country Life butter, Clover spread, St Hubert Omega 3 spread and FRijj, said it was on track with annual efficiency savings of £20m to help offset higher input costs.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Looking forward, the consumer environment is challenging and increasingly difficult to predict. Despite this, we remain confident that we will deliver profits for the year in line with our expectations," said chief executive Mark Allen.
The group said it has bank funding in place through to 2016. Half year net debt increased 9% to £365.3m.
Dairy Crest underlined its confidence in future trading with a 4% increase in its half year dividend to 5.7p.
--
cj
-
Review: Relais & Châteaux – a world of wine and art in the Western CapeTravel Relais & Châteaux, the association of independent luxury hotels, offers a refined experience in Cape Town and Stellenbosch, in South Africa
-
The age of resilience: Outperformers must first be survivorsTransformative companies must shockproof themselves against turbulent times, writes Tom Slater, investment manager for Scottish Mortgage.
