Financial Highlights
Adjusted profit before tax is up 7% to £50.6 million
Year-end net debt is down 82% to £60 million
Post year-end restructuring of balance sheet reduces future interest charges
Post year-end additional £40 million cash contribution to the pension fund reduces exposure
Proposed final dividend is up 2%
Strategic highlights
Successful sale of St Hubert has refocused the business on the UK
Process is underway to move to one business structure focusing on consumer driven growth and an integrated supply chain
Innovative new milk price formula introduced to help farmers and sustain milk supply
Operating Highlights
Ongoing growth for Cathedral City ahead of market
Clover and Country Life both gained market share
Innovation driving added value sales: 5% of total revenue and 9% of key brand revenue generated from products introduced in the last three years
Continued focus on costs: £23 million annualised cost savings delivered in 2012/13, with a further £20 million identified for 2013/14
BITC Platinum Big Tick Award reflects ongoing strong Corporate Responsibility commitment
Commenting on the results, Mark Allen, Chief Executive, Dairy Crest Group plc said:
"This has been an important year in the history of Dairy Crest. The sale of our French spreads business and subsequent restructuring of our balance sheet has strengthened our financial position and leaves us well placed to invest for growth in the UK, either internally or through acquisitions.
In line with our long term strategy we have continued to manage proactively the business and remain focused on driving efficiencies. Taken together, our four key brands have increased their market share in the face of falling UK consumption. We have also started to restore profits in our Dairies business.
Dairy Crest is today a more streamlined business, and all three of our product categories have encouraging medium-term profit growth prospects. Whilst we expect the consumer environment to remain subdued, we have strong foundations in place and trading in the current financial year has started in line with our expectations."
