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Dairy Crest announces final year results for year ended 31 March 2013

23/05/2013

A video interview with Mark Allen, CEO and an audiocast of the presentation are available from the Investors section of the website.

Dairy Crest Group plc ("Dairy Crest")

Final results for year ended 31 March 2013

2012/13 2011/12 Change
Revenue #

£1,382m

£1,515m (9)%
Adjusted profit before tax* # £50.6m £47.5m +7%
Profit / (loss) for the year £54.5m £(17.1)m  
Adjusted basic earnings per share* # 29.9p 28.9p +3%
Basic earnings / (loss) per share # 0.0p (29.1)p  
Year-end net debt £60m £336m (82)%
Proposed final dividend 15.0p 14.7p +2%

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

# From continuing operations - excluding the discontinued St Hubert business, sold in August 2012.

Financial Highlights

  • Adjusted profit before tax is up 7% to
  • Year-end net debt is down 82% to £60 million
  • Post year-end restructuring of balance sheet reduces future interest charges
  • Post year-end additional £40 million cash contribution to the pension fund reduces exposure
  • Proposed final dividend is up 2%

Strategic highlights

  • Successful sale of St Hubert has refocused the business on the UK
  • Process is underway to move to one business structure focusing on consumer driven growth and an integrated supply chain
  • Innovative new milk price formula introduced to help farmers and sustain milk supply

Operating Highlights

  • Ongoing growth for Cathedral City ahead of market
  • Clover and Country Life both gained market share
  • Innovation driving added value sales: 5% of total revenue and 9% of key brand revenue generated from products introduced in the last three years
  • Continued focus on costs: £23 million annualised cost savings delivered in 2012/13, with a further £20 million identified for 2013/14
  • BITC Platinum Big Tick Award reflects ongoing strong Corporate Responsibility commitment

Commenting on the results, Mark Allen, Chief Executive, Dairy Crest Group plc said:

"This has been an important year in the history of Dairy Crest. The sale of our French spreads business and subsequent restructuring of our balance sheet has strengthened our financial position and leaves us well placed to invest for growth in the UK, either internally or through acquisitions."

"In line with our long term strategy we have continued to manage proactively the business and remain focused on driving efficiencies. Taken together, our four key brands have increased their market share in the face of falling UK consumption. We have also started to restore profits in our Dairies business."

"Dairy Crest is today a more streamlined business, and all three of our product categories have encouraging medium-term profit growth prospects. Whilst we expect the consumer environment to remain subdued, we have strong foundations in place and trading in the current financial year has started in line with our expectations."

For further information:

Dairy Crest
Arthur Reeves 01372 472236

Brunswick
Simon Sporborg 020 7404 5959