Dairy Crest ups sales and profits and reduces costs

Announcing its annual results for the year ending 31 March, the group said it had made significant progress with a 5% increase in pre-tax profit, a 9% increase in the sales of key brands, an 8% hike in sales of milk to major retailers and a 19% reduction in debt. New initiatives would generate £20 million in annualised cost reductions and a new capital investment programme to improve liquid milk dairies had been instigated, it said. Chief executive Mark Allen (pictured) said it had been an exciting year for Dairy Crest during which it had consistently delivered on its strategy of brand investment, cost reduction and cash generation, and had strengthened the business for the future. He went on: "During the year, we have increased operating profits and significantly cut our borrowings, and at the same time we have continued to develop our key brands and other added value sales. We have confirmed our commitment to our dairies business by announcing a major capital investment programme. In addition we have continued to innovate with further developments in our new doorstep internet proposition. We have substantially reduced our pension scheme exposure and completed the important work to set out our corporate vision and values. "Dairy Crest has changed from the predominantly commodity focused, UK based business that it was 15 years ago to an added value dairy food company with a significant profit stream from continental Europe. We have shown that we can grow added value sales both organically and through acquisitions and we are well placed to continue this." Total revenue for the year dipped 1% to £1.63 billion (2008/09: £1.65bn) while adjusted pre-tax profit was 5% up at £83.5 million (£79.5m).