Archive: Dairy Crest look to cheese and whey for profits

Published 22 September 14

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Dairy Crest expects to report that overall profits for the first half of the 2014/15 financial year will be roughly in line with last year’s pre-tax profits of £19.7m. Performance in its cheese division is reported as strong, despite falling consumer expenditure on food. Profits from property sales are expected to support overall profits this year, while its investment project in specialist whey ingredients is reported as being on track to support profits in the year ending 2015/16.

The liquid division is expected to report a loss for the period. While sales of Frijj flavoured milk are growing, the downward pressure on fresh milk selling prices, combined with reduced returns from commodity markets have contributed to this situation.

As part of its strategy to reduce costs by £20 million per annum, the company has announced the proposed closure of two additional production sites. These include its glass bottling dairy in Hanworth, West London and a specialist cream potting facility in Chard, Somerset.

Dairy Crest will release its full Interim Results on 6 November 2014.