Dairy Crest Says FY Trading in Line With Expectations

UK-based Dairy Crest has reported that it expects full year trading to be in line with expectations due to strong growth from some of its key brands, including Cathedral City cheese, Country Life spreadable butter, and Frijj yogurt.

The milk and dairy company said that two acquisitions have helped boost the company’s earnings. In August 2006, Dairy Crest acquired Express Dairies, creating a larger milk business, and, in January 2007, the company purchased the St Hubert spread business from chilled foods company Uniq. In addition, the company’s joint venture with Yoplait, Yoplait Dairy Crest, performed in line with expectations.

Despite strong results from its Clover and Country Life Spreadable brands, Dairy Crest’s overall performance in the UK spreads market was weak due to the challenging marketplace that faced its Utterly Butterly and St Ivel Gold spreads.

Mark Allen, CEO of Dairy Crest, commenting on the full year, said: “This has been an active year during which we have significantly reshaped the business. Dairy Crest traded solidly throughout the year and we are encouraged by the initial contribution from St Hubert spreads and the continued strong performance of Cathedral City. We expect to report full year results in line with our expectations.”