First half profitability maintained despite challenging trading environment
- All four key brands grow retail market share
- Annual cost reductions on target to deliver £20 million
- Strong contributions from Spreads and Cheese and lower interest charges offset Dairies losses
- Whey investment on track to boost profits in 2015/16
- Interim dividend up 2%
Disposal of Dairies operations also announced
- Cash consideration of £80 million on completion
- Conditional on the approval of shareholders, relevant competition authorities and employee consultation
Mark Allen, Chief Executive, said:
"Dairy Crest has delivered adjusted first half profits broadly in line with last year and we have continued to grow our key brands and reduce our cost base. In an environment which remains particularly difficult to predict our immediate focus is on delivering the second half.
"The investments we are making to add value to whey are on track to grow future profits. In addition the proposed disposal of our Dairies operations, which we are also announcing today, is another positive development for Dairy Crest and the wider UK dairy industry."
