May 19, 2010

UK Dairy Crest cuts debt as profit grows

UK milk producer, Dairy Crest served up a 5% increase in adjusted annual pre-tax profit as it posted a 19% reduction in year end net debt.

The group, whose key brands include Cathedral City, Country Life and Clover, said adjusted pre-tax profit rose to GBP83.5 million (US$120.8) for the year ended March 31, 2010 from GBP79.5 million (US$115 million) the same time a year earlier. Revenue for the year slipped 1% to GBP1.6 billion (US$2.3 billion). Year-end debt fell to GBP337.2 million (US$487.9 million) from GBP415.8 million (US$601.6 million).

Commenting on the group's efficiency drive, chief executive Mark Allen said, "During the year, we have increased operating profits and significantly cut our borrowings."

"We continue to set ourselves challenging targets to reduce our costs and are confident further improvements remain possible," he said.

Sales of Dairy Crest's key brands were up 9% while sales of milk to major retailers rose 8% during the year. Overall trading at the start of the new year is in line with the company's expectations.