Dairy Crest announces profit increase

Dairy processor Dairy Crest has announced a 3% increase pre-tax profits in its interim results, despite a 35% in the amount it pays for raw milk since June.

The company made £30.6m in the six months to 30 September, up from £29.8m last year.

Dairy Crest said the improvement in profits was principally due to the acquisitions of Express Dairies and St Hubert last year.

‘Unprecedented conditions’

Revenue also increased by 29%, from £588.6m to £761.4m, with key brands such as Cathedral City and Utterly Butterly showing strong growth.

Mark Allen, Dairy Crest chief executive, said the processor had achieved a good first half performance, despite “unprecedented market conditions”.

Higher raw milk costs

“Most of our key pillar brands are performing strongly. In addition we are making good progress with healthier variants of some of these brands,” he said.

“Whilst market conditions are challenging, we are implementing price increases across most dairy categories to reflect higher raw milk costs,” he added.

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