Dairy Crest Group plc
Audited results for the year to 31 March 2003

Strong brand growth with improving quality of earnings

Highlights

• Continued strong growth of key brands: Clover, Cathedral City, Frijj and the Yoplait brands
• Strategic acquisition of St Ivel Spreads and strong performance to date
• Completion of £54 million investment programme in super dairies with Severnside fully operational
• Reduction of exposure to commodities with planned closure of butter and powder facility at Chard
• Quality of earnings improving and the Group is moving into a period of strong cash generation

* before exceptional items and goodwill amortisation

Drummond Hall, Chief Executive, Dairy Crest Group plc, said:

“I believe the business is in a strong competitive position and is well placed to deliver shareholder value. Our brands have started the year well.  The planned closure of the butter and powder facility at Chard is expected to have a broadly neutral impact on the current year.  Industry cheese stocks have reduced but there are still some excess stocks of mature cheddar which will continue to affect margins in the first half.  However margins are expected to improve progressively through the year and the Group’s performance is again likely to be weighted towards the second half.  Overall we expect profits for the year, including the full year benefit of the St Ivel Spreads acquisition, to show good progress and the Group to be strongly cash generative.”