Dairy Crest Key Brands Sales Up 3% In 1Q; Plans To Cut Debt

20th Jul 2010 08:02

LONDON (Dow Jones)--U.K. dairy company Dairy Crest Group PLC (DCG.LN) Tuesday said first-quarter sales of its five core brands have increased 3% from a year earlier and it expects to make a "meaningful reduction" to its year-end debt. Dairy Crest, which makes Cathedral City cheese, Country Life and Clover butters and FRijj milkshakes, said trading was in line with its own expectations but didn't say what these were. Analysts predict pretax profit of GBP88 million on revenue of GBP1.65 billion for the year to March 31, 2011, according to FactSet. Dairy Crest said it is making good progress with sales of milk to major retail customers, especially in bags which can be used with its patented jug, Jugit, as buying milk in bags--as opposed to plastic bottles--uses less packaging. In addition to national distribution with major supermarket J Sainsbury PLC (SBRY.LN), Dairy Crest said it has recently started a trial with Tesco PLC (TSCO.LN) and is increasing sales to its doorstep customers. -By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; [email protected] Order free Annual Report for Dairy Crest Group PLC Visit http://djnweurope.ar.wilink.com/?ticker=GB0002502812 or call +44 (0)208 391 6028 Order free Annual Report for Tesco PLC Visit http://djnweurope.ar.wilink.com/?ticker=GB0008847096 or call +44 (0)208 391 6028 Order free Annual Report for J Sainsbury plc Visit http://djnweurope.ar.wilink.com/?ticker=GB00B019KW72 or call +44 (0)208 391 6028 (END) Dow Jones Newswires July 20, 2010 03:02 ET (07:02 GMT)