Property sales helps Dairy Crest full-year profit soar

22nd May 2014 07:41

- Full-year profit surges 31 per cent - Profit boosted by sale of properties, cost savings- Expects trading in current year to be in line with expectationsBritain's largest dairy company Dairy Crest delivered a sizeable increase in full-year profit as it reorganises into one business structure.Adjusted pre-tax profit rose to £65.3m for year ended March 31st from £49.7m the previous year after cost savings and profits from disposals. Revenue rose to £1.391bn from £1.382bn. The company, whose brands include Country Life, Clover and flavoured milk drink Frijj, said basic earnings per share rose to 35.8p compared to a 5.9p loss the year earlier. Chief Executive Mark Allen said: "Following the transformational sale of our French spreads business last year we have completed our reorganisation into one business structure. This has helped in our constant drive to reduce costs. Our largest brand, Cathedral City continues to grow strongly. "The current trading environment is challenging. However, the strength of our key brands and our proven ability to cut costs and drive efficiencies mean that we remain confident that we can generate profit growth in all three of our product groups over the medium term."Dairy Crest said its net debt is comfortably within its targeted range and it expects to be able to reduce it further in the future as capital expenditure on existing business falls back towards depreciation and it continues to sell surplus properties. Debt reduction will also be supported by the agreement to reduce its annual contributions to the Dairy Crest Group Pension Fund from £20m to £13m for the next two years, it explained."Taking account of today's challenging environment, we anticipate that trading in the current financial year will be in line with our expectations," it addedA full year dividend of 21.3p has been offered, up from 20.7p last time. Year-end net debt ballooned to £142m from £60m the year before.CJ