Preliminary Results Announcement
Dairy Crest announces its audited results for the year ended 31 March 2009.
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Financial Highlights: |
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2008/09 |
2007/08 |
Change |
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Revenue |
£1,648m |
£1,570m |
+5% |
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Profit before tax |
£103.2m |
£66.0m |
+56% |
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Adjusted profit before tax * |
£79.5m |
£86.0m |
-8% |
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Earnings per share |
56.8p |
40.2p |
+41% |
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Adjusted earnings per share * |
45.0p |
51.7p |
-13% |
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Year-end net debt |
£415.8m |
£474.8m |
-12% |
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Total dividend for the year |
20.1p |
24.4p |
-18% |
* Before exceptional items, amortisation of acquired intangibles and pension interest credit. All amounts are from continuing operations.
Business Highlights and Recent Developments:
- Dairy Crest has made significant progress in a number of areas
this year:
- Maintained strong brand growth
- Reduced net debt by £59 million
- Heightened focus on cost control
- Greater emphasis on advertising and promoting key brands to underpin brand growth
- Innovation delivering results:
- 'Lighter' brand extensions have grown sales
- New cheese packing facility will provide a great platform for cheese innovation
- Full roll out of 'milk&more' planned for Summer 2009
- Head office restructure, investment in RDCs, dairy closure and depot closures drive down costs
- Increased focus following disposal of Stilton and speciality cheese business and 49% stake in Yoplait Dairy Crest
- Pension Fund deficit payments to resume from October 2009 at £20 million per annum
- Dividend rebased: final dividend 13.0 pence per share
Mark Allen, Chief Executive, Dairy Crest Group plc said:
"Dairy Crest has made significant progress in a number of areas this year. We have delivered good growth in brands, achieved a material reduction in net debt, reduced costs and improved our operating efficiencies. We have continued our transition from commodity processor to added value food manufacturer by selling our Stilton and speciality cheese business and our 49% stake in Yoplait Dairy Crest.
However, in light of additional cash contributions to the pension fund and the dilutive effect of the Yoplait Dairy Crest disposal on 2009/10 earnings the Board has reviewed the Group's dividend policy. The Board has concluded that it is sensible to conserve cash and ensure that the business is well funded to protect investment in its brands and into efficiency-driven capital projects. Accordingly, it has decided to rebase this and future dividends by 25%.
Dairy Crest is a broadly based dairy business. The benefits of this will be demonstrated in 2009/10 as stock profits in our cheese business unwind and those in our Dairies division increase to compensate.
Our plans for 2009/10 are to
maintain our focus on cash management and to continue the
development of our key brands. Trading at the start of the
year is in line with expectations and we believe that our business
is in good shape to deliver in the year ahead. In addition we
are well placed to benefit when the external environment
improves."
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For further information: |
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Dairy Crest |
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Brunswick |
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