Sept 24 Dairy Crest Group Plc said it
expects adjusted profit to fall in the first half as its core
milk business continues to weigh on results, but the maker of
Cathedral City cheese said its forecast for full-year profit
Aggressive price wars between supermarkets and low bulk
cream prices have hurt Dairy Crest's core milk business.
But strong cheese and spreads sales have helped the company
Dairy Crest said trading in the first half of the year was
challenging and that it expects profit, adjusted for the
disposal of its St. Hubert business, to be lower than last year.
Brands like Cathedral City cheese, Country Life butter,
Clover spread and Frijj milkshakes performed strongly, but the
company's dairies business continued to face "unprecedented
Dairy Crest is raising milk selling price, closing its
Aintree creamery and consolidating milk rounds to reduce costs.
Plans to close its Fenstanton dairy this autumn are also on
track, the company said.
Shares in the company, which completed the disposal of its
St Hubert French branded spreads business last month, closed at
337.9 pence on Friday on the London Stock Exchange. They have
gained 4 percent over the past three months.