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Dairy Crest Announces Interim Results - November 2014

06/11/2014

Half year ended 30 September

Financial Highlights: 2014 2013 Change
Revenue1: £682.1m £672.2m +1%
Adjusted profit before tax1, 2: £21.3m £21.9m -3%
Profit before tax1: £0.9m £19.7m -95%
Adjusted basic earnings per share1, 2: 13.0p 13.1p -1%
Basic earnings per share1: 0.5p 13.1p -96%
Half year net debt: £209.6m £192.3m +9%
Interim dividend: 6.0p 5.9p +2%

1 From continuing operations
2 Before exceptional items, amortisation of acquired intangibles and pension interest

First half profitability maintained despite challenging trading environment

  • All four key brands grow retail market share
  • Annual cost reductions on target to deliver £20 million
  • Strong contributions from Spreads and Cheese and lower interest charges offset Dairies losses
  • Whey investment on track to boost profits in 2015/16
  • Interim dividend up 2%

Disposal of Dairies operations also announced

  • Cash consideration of £80 million on completion
  • Conditional on the approval of shareholders, relevant competition authorities and employee consultation

Mark Allen, Chief Executive, said:

“Dairy Crest has delivered adjusted first half profits broadly in line with last year and we have continued to grow our key brands and reduce our cost base. In an environment which remains particularly difficult to predict our immediate focus is on delivering the second half.

The investments we are making to add value to whey are on track to grow future profits. In addition the proposed disposal of our Dairies operations, which we are also announcing today, is another positive development for Dairy Crest and the wider UK dairy industry.”

For further information:

Dairy Crest Group plc
Arthur Reeves 01372 472236

Brunswick
Tim Danaher / Max McGahan 020 7404 5959

A video interview with Mark Allen will be available from 07:00 (UK time) from the investor section of the Group’s website investor.dairycrest.co.uk.

There will be an analyst and investor meeting at 8.30 (UK time) today at The Lincoln Centre, 18 Lincoln’s Inn Fields, London, WC2A 3ED. An audiocast of the presentation will be available from the investor section of the Group’s website investor.dairycrest.co.uk later today.

View the full press release