Plus   Neg

Dairy Crest Sees Higher Profit, Revenues In H1; FY View Unchanged

British dairy company Dairy Crest Group plc (DCG.L) announced Monday that it expects Group revenue in the first half of the financial year to be ahead of last year, driven by strong performances from two largest brands, Cathedral City and Clover. Further, the company sees profit for the half year to be slightly ahead of the same period last year. Our expectations for the full year remain unchanged.

In its trading update, the company said Cathedral City's revenue is expected to deliver good growth against strong volumes a year ago. Clover is expected to deliver both volume and revenue growth, continuing the positive performance from last year.

In line with the broader UK oil market, Frylight is expected to show a reduction in volume and revenue for the first half of the year due primarily to the unusually hot weather which impacted oil usage. However, trading has improved significantly in recent weeks and that trend is expected to continue into the second half.

The company has continued to restrict Country Life promotional activity while butter costs remain high, and this continues to impact sales.

The Functional Ingredients business continues to grow in line with expectations.

Further, Dairy Crest said it aims to deliver 10% of its revenues from products developed within the past three years. In 2017/18, 14% of revenues came from recent innovation.

The next few months will see several new product releases for Cathedral City. The company will shortly unveil a galacto-oligosaccharides (GOS) 'shot' for consumers which is marketed under the Promovita brand name.

Dairy Crest expects to issue its Interim Results for the six months ended September 30 on November 7.

For comments and feedback contact: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
McDonald's Corp. has announced the return of its popular Shamrock Shake milkshake for a limited time at participating U.S. restaurants nationwide. The minty green milkshake is made with McDonald's vanilla soft serve blended with Shamrock Shake syrup and topped with whipped topping. It first debuted on the McDonald's menu in 1970 and has been a seasonal tradition for nearly 50 years. Asia-focused lender HSBC, through its blockchain-powered platform, has reduced the cost of settling foreign exchange trades by 25 percent, Reuters reported quoting a bank executive overseeing the project. Mark Williamson, chief operating officer of FX cash trading and risk management, told that the bank processes between 3,500 and 5,000 trades a day on its "FX Everywhere" system. PepsiCo, Inc. (PEP) reported fourth-quarter core EPS of $1.49 compared to $1.31, prior year. Excluding the impact of foreign exchange translation, core constant currency EPS increased 17 percent year-over-year. On average, 19 analysts polled by Thomson Reuters expected the company to report profit per...
Follow RTT