Interim Results Announcement
Dairy Crest today announces its unaudited results for the six months ended 30 September 2008:
| Half year ended 30September |
Financial Highlights: | 2008 | 2007 |
| | |
* Group Revenue: | £641.9m | £630.5m |
* Profit before tax: | £17.0m | £32.0m |
* Adjusted profit before tax*: | £26.1m |£35.7m |
* Earnings per share: | 12.3p | 20.6p |
* Adjusted earnings per share*: | 14.8p | 20.8p |
* Half year net debt: | £301.2m | £260.5m |
* Interim dividend: | 6.3p | 5.9p |
*Including share of joint ventures and before special items and amortisation of intangible assets
Operating and Financial Review
The Group has delivered first half results in line with marketexpectations with adjusted profit before tax (including share of joint ventures and before special items and amortisation of intangible assets) of £26.1 million reflecting the adverse impact on the Dairiesdivision of last year’s changes in the fresh milk sector. The Group continues to invest in the long-term development of its brand portfolio with increased marketing expenditure, while putting strongemphasis on a continuous programme of cost reduction. During the first half the Group made strategic acquisitions to strengthen the Dairies division. The Foods division has continued to make goodprogress with particularly strong brand growth from Cathedral City. We have also made a major investment in a new marketing campaign for the Country Life brand which we believe represents a significantlong term opportunity for the Group.
Whilst trading conditions remain competitive, with the recovery of higher oil related costs being challenging, performance in the second half is expected tobenefit from the cheese price increases achieved in the first half, continued brand progress and the integration of the recent strategic dairy acquisitions.
For the first time,...