By Dairy Crest has released its interim management statement for the nine months to December 2013, which shows continued commitment to its key brands as well as cost saving measures. The development of Dairy Crest's new demineralised whey powder plant is reported to be progressing to plan.
The company has reported a 4% increase in sales of its key brands (Cathedral City, Country Life, Clover and FRijj) in the period from April to December 2013. According to latest Kantar Worldpanel figures for the 52 weeks to 5 January 2014, the branded Cheddar sector is showing a 7.1% decrease in value while the flavoured milk drinks category has seen value growth of 17.3%. FRijj sales were said to have had a strong third quarter and Dairy Crest will be looking to recoup a loss of sales of the milk drink during the recent upgrade of its production facilities.
It's Spreads profits are expected to be below previous forecasts by the end of March, due to higher cream prices and reduced demand across the category. Latest Kantar Worldpanel figures show that sales of spreads are down 7.4% in the 52 weeks to 5 January, while butter sales are up 5.2%.
In addition, Dairy Crest has sold its Nine Elms depot in London for £17.6 million, as part of a continued effort to move out of the less-profitable doorstep milk deliveries business. The sale generates a profit of £15 million and takes sales from properties ahead of its £8 million year-end target. The extra profits from property sales are expected to put Dairy Crest's total profits for the year ahead of expectations.
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