November 11, 2011
As higher selling prices offset a rise in input costs, Dairy Crest Group reported strong first-half results.
The chilled dairy foods company, which also makes Clover spread, Country Life butter, and St Hubert Omega 3 spread, said sales of liquid milk to major retailers continued to rise in the first half.
Chief Executive Mark Allen said in a statement on Thursday (Nov 10) that looking forward, the consumer environment is challenging and increasingly difficult to predict. Despite this, they remain confident that they will deliver profits for the year in line with their expectations.
Inflation in Britain hit a three-year high in September driven by soaring gas and electricity bills, adding to the severe squeeze on Britons' living standards as wages have failed to keep up with rising prices.
April-September pre tax profit was GBP39.2 million (US$62.5 million), compared with GBP36.1 million (US$57.5 million) a year ago. Revenue was up 2% at GBP796.2 million (US$1.3 billion).
Dairy Crest shares, which have lost 20% of their value since the start of 2011, closed at GBP3.36 (US$5.35) on Wednesday (Nov 9) on the London Stock Exchange, valuing the company at about GBP450 million (US$717 million).