Dairy Crest's results for the year demonstrate the benefit of being a broadly based business.  A strong performance from our branded Spreads and Cheese businesses has more than offset tougher trading in Dairies.

We have again increased added value sales.  Our five key brands have all performed well.  We have also grown sales of milk to major retailers, started to supply liquid milk to Tesco and made considerable progress with our milk&more internet doorstep delivery service. 

We have also been successful in making cost savings across the business to reduce the effect that commodity inflation is having on our customers and consumers, and have lowered net debt again this year.

Looking forward, trading in the new financial year is in line with our expectations.

Against a background of higher input costs and increasingly cash-constrained consumers we will continue to focus on doing the right things for long-term benefit, including making efficiency improvements and investing in the long-term health of our brands and facilities.  We are soundly positioned to deal with the challenges ahead.

Mark Allen, CEO

	2010/11	2009/10	Change
Revenue	£1,605m	£1,630m	-2%
Adjusted profit before tax*	£87.6m	£83.5m	+5%
Profit before tax	£77.8m	£77.8m	-
Adjusted basic earnings per share*	47.1p	44.5p	+6%
Basic earnings per share	43.2p	40.6p	+6%
Cash generated from operations	£128m	£146m	-12%
Year-end net debt	£312m	£337m	-7%
Proposed final dividend	14.2p	13.6p	+4%

^{* Before exceptional items, amortisation of acquired intangibles and pension interest.}

 Financial Highlights

5% increase in adjusted profit before tax in challenging trading conditions

Good cash generation with £25 million reduction in year end net debt

Final dividend increased 4% to 14.2 pence per share making a total dividend payment of 19.7 pence per share

Operating Highlights

Sales of five key brands up 7%

St Hubert brand reaches 30% market share

Volume of milk to major retailers up 9%

milk&more weekly sales over £1 million

£20 million annualised cost reduction initiatives delivered during the year and a further £20 million identified for 2011/12 

To see the full presentation of our 2010/11 final results, plus an interview with our CEO and FD, go to our Investor section.