Cathedral City not enough to help DC escape market movements

Published 6 November 15

Dairy Crest (DC) has released its interim results for the half year ending 30 September and, although Cathedral City volume and value grew 14% and 7% respectively, overall revenue and profits were down. Weakened global commodity markets meant that other DC products saw reductions in value.

 

Half year ended 30 September

2015

2014

Change

Revenue ⁺

£203.8m

£215.3m

-5%

Profit before tax ⁺

£13.1m

£15.0m

-13%

Net debt

£242.3m

£209.6m

16%

Interim dividend

6.1p

6.0p

2%

⁺ from continuing operations

Source: Dairy Crest

However, DC continue to predict improved performance in the second half of the financial year. The sale of its dairies divisions will significantly reduce its overhead base. Also, sales of demineralised whey and galacto-oligosaccharide commencing in the second half of the financial year should provide a welcome increase in profit margins on whey output.