Dairy Crest posts strong set of financial results

Despite costs rising 40% over the last 12 months, Dairy Crest has announced a 24% increase in annual profits from £77.4 million to £96.1 million.

Revenues increased 20% from £1.3 million to £1.5 million.

The maker of Cathedral City, Country Life Spreadable, Utterly Butterly, St Hubert Omega 3, Petits Filous and Frubes, has been hit by rising fuel and other costs and supply fall, and has put up the price of its milk.

The UK’s largest dairy group said the increases were necessary in order to offset these rising production costs.

The company delivers direct to over one million doorsteps and supplies the major UK supermarkets.

It has passed on its growing costs directly to consumers through its doorstep delivery business and indirectly via the supermarkets. Doorstep prices have increased from 53p a pint to between 55p and 59p since last autumn.

Commenting on the results, Mark Allen the firm’s chief executive, said we have delivered a strong set of financial results. These have benefited from the strategic moves made over the last eighteen months.

Mr Allen added they work closely with retailers to ensure consumers get value for money given that price inflation is such an issue at the moment.

In the meantime, Dairy Crest hopes to expand its ‘milk & more’ internet doorstep delivery service. Late last year, it completed successful trials in its south-west London, Richmond, Wimbledon, Epsom and Surbiton depots.

The milk & more service offers a range of fruit and vegetables and organic goods, as well as the traditional pint of milk.

Late last year, Dairy Crest was among six firms, including the big 4 supermarkets, accused by the Office of Fair Trading of colluding to fix dairy product prices in 2002 and 2003. Dairy Crest received a fine of £9.4 million.

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