Final Results for Year Ended 31 March 2018

May 23, 2018

Highlights

Group revenue up 10% to £456.8m
Cathedral City revenue grows by 6%
Spreads brands increase revenue by 10%
Sales channels developing for GOS beyond infant formula
Adjusted profit before tax^* rises 3% to £62.3m; reported profit before tax (after net exceptional items^**) up 345% to £179.2m
EBITDA^* increases 8% to £90.2m
Pension surplus of £93.9m – an improvement of more than £200m
Net debt^* of £265.7m to fund higher value stock
Innovation accounts for 14% of total revenue^***

Financial Summary
	Year ended 31 March
	2018	2017	Change
Revenue	£456.8m	£416.6m	+10%
Adjusted profit before tax	£62.3m	£60.6m	+3%
Profit before tax	£179.2m	£40.3m	+345%
Adjusted basic earnings per share	36.7p	35.6p	+3%
Basic earnings per share	106.6p	23.7p	+350%
Pension surplus / (deficit)	£93.9m	£(109.6)m	n/a
Net debt	£265.7m	£249.8m	+6%
Final dividend	16.3p	16.3p	-

^{*Alternative performance measures:}
^{The Group uses alternative performance measures (APMs) as key financial performance indicators to assess the underlying performance of the Group. The APMs used are widely used industry measures and form the measurement basis of key targets. Definitions of the APMs discussed throughout this document and a reconciliation to the equivalent statutory measure are detailed in Note 22.}
**^{Further detail on exceptional items can be found in Note 5.}
^{*** Revenue from new products launched within the past three years}

“This has been a year of considerable progress for Dairy Crest. We have delivered a strong performance, broadly maintaining our industry-leading margins against a backdrop of unprecedented cost inflation in the butters market. Our brands are in good shape. Cathedral City has had a good year growing value, volume and market share, and we see plenty of room for further growth for this industry-leading brand. We have seen good momentum in revenue growth going into the new financial year.
“With much of the groundwork now complete, we expect sales of demineralised whey at infant formula grade to accelerate further over the coming year. We have already established ourselves as a leading supplier for organic GOS and we are also making good progress in developing a market for GOS beyond infant formula, having carried out research which has shown the meaningful benefits of using this product in animal feed.
“We will continue to invest in our brands, supply chain and infrastructure to ensure that we are well positioned to capitalise on future growth opportunities.”

Mark Allen, Chief Executive

For further information, please contact:

Dairy Crest
Tom Atherton
01372 472264

Kate Goode
01372 472236

Brunswick
Tim Danaher / Alison Kay
0207 404 5959

A video interview with Mark Allen and Tom Atherton is available from the investor section of the Group’s website www.dairycrest.co.uk/investors. There will be an analyst and investor meeting at 10:30 (UK time) today at The Lincoln Centre, 18 Lincoln’s Inn Fields, London, WC2A 3ED, following which an audiocast of the presentation will also be available on the website.