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Interim Results Announcement

10/11/2011

Dairy Crest is announcing its unaudited results for the six months ended 30 September 2011:

 

Half year ended 30 September

Financial Highlights:

2011

2010

Change

Revenue:

£796.2m

£776.9m

+2%

Profit before tax:

£39.2m

£36.1m

+9%

Adjusted profit before tax *:

£43.7m

£40.1m

+9%

Basic earnings per share:

22.4p

19.8 p

+13%

Adjusted basic earnings per share *:

24.8p

21.4p

+16%

Half year net debt:

£365.3m

£335.5m

+9%

Interim dividend:

5.7p

5.5p

+4%

* before exceptional items, amortisation of acquired intangibles and pension interest.

Increased first half profits from broadly based business

- adjusted profit before tax up 9% benefiting from increased property profits 
of £4.6 million from continued rationalisation of depot network
- higher profits in Spreads and Cheese offsetting lower Dairies profits
- adjusted basic earnings per share up 16% helped by lower effective tax rate

On track with efficiency savings

- Annual efficiency savings of £20 million help offset higher input costs

Continuing growth in branded sales

- Sales of five key brands up 5% in aggregate
- Strong performance from St Hubert in France
- Increased selling prices also helped offset higher input costs
- Four new branded ranges launched
- milk&more weekly sales up to £1.2 million
- Branded food business MH Foods acquired for £12.3 million (net of cash)

Debt refinancing complete

- Bank funding in place through to 2016

"Dairy Crest has delivered a robust performance during the first half of the year. In line with our strategy, we have continued to grow our key brands, reduce our costs and control our debt.
We are concentrating on implementing initiatives that will deliver long term value for everyone involved with our business - providing consumers with high quality and great value, paying a fair milk price to farmers and continuing to invest in marketing, innovation and facilities.
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."

Mark Allen, Chief Executive

For further information, please contact:

Dairy Crest Group plc

Arthur Reeves

01372 472236

Brunswick

 

Simon Sporborg

020 7404 5959

To see the full presentation go to our Investor section.