May 21, 2008

Price hikes boost Dairy Crest earnings
 

UK major dairy firm Dairy Crest has earned a 24 percent increase in full-year profits after hiking prices and cutting costs to offset rising commodity prices.

The firm's pre-tax profits have increased to GBP 96.1 million (US$189.2 million), thanks to double-digit sales increase for its flagship cheese and spread brands.

Dairy Crest increased doorstep delivery milk prices from around 53 pence a pint to between 55-59 pence a pint last September while also rising prices for its cheese and spreads.

Dairy Crest said it had begun to halt the decline in milk-round sales, with new initiatives helping to limit the drop in underlying sales to below 7 percent, down from more than 11 percent four years ago.

The firm is also ready to extend its Internet delivery service nationwide, as customers on average buy 45 percent more products through the new service. The firm also hopes to boost its 1.5 million milk round customer based with the Internet service.