Dairy Crest tastes success
SHOPPERS have kept a healthy appetite for Dairy Crest’s cheese and spreads despite trading down in other areas of their spending budget.
Over the past three months, the £520million cheese and milk producer has enjoyed bumper sales of Cathedral City cheddar — worth £173million in annual turnover — as well as spreads Clover and Utterly Butterly.
Chief executive Mark Allen said a combination of passing on higher food and energy prices to customers and cost-cutting put the company on track to meet annual profits forecasts despite “general market conditions remaining difficult”. Food sales were 14 per cent up on the same quarter a year ago, while its dairies division was trading 5 per cent ahead.
Doorstep milk delivery volumes have fallen since a May price increase but Dairy Crest has seen higher sales of non-milk products such as bread and fruit juice for customers at its milk&more internet delivery service.
Analysts also welcomed news that the company’s monetary health had eased after it refinanced a £275million credit facility.
Dairy Crest shares rose 35.25p to 391p.