After a year change which saw the group sell-off its milk arm to Müller, Dairy Crest has reported that its pre-tax profit rose 23% to £45.4m in the year to 31 March, although sales were down 6% to £422.3m.
Impacted by deflation in the market, overall revenue from its four key brands fell by 2.3%. Cathedral City showed growth of 0.8% and Frylight sales jumped 27.9%, although sales of Clover and Country Life were down 14.9% and 6.2% respectively.
However, volumes grew at Cathedral City (+6.4%), Country Life (+3.9%), and Frylight (+29.1), whilst Clover fell 6.4%.
Commenting on the results, Mark Allen, Chief Executive of Dairy Crest, said: “This is an exciting time to be leading Dairy Crest. Although we expect food price deflation to persist in
the short term, the business is well positioned to deliver profitable and sustainable growth. We are making progress with all of our four key brands and the continued investment we are putting behind them this year gives me confidence that we can continue to grow their market share.”
He added: “The other focus for 2016/17 will be on accelerating sales of demineralised whey and GOS, the new infant formula ingredients and continuing to explore further applications for GOS. Future cash generation will improve as the sale of our Dairies business and completion of the investment at Davidstow removes a significant drain on cash.”