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Uniq writes-off £20m in yogurt and dessert sales

By Ben Bouckley, 16-Sep-2011

Related topics: Financial

UK chilled and convenience foods firm Uniq said today that it would lose £20m, following the closure of its 'everyday' desserts business at Minsterley by June 2012.

The restructure, which follows the groups takeover by Irish rival Greencore subject to a UK competition clearance, could see up to 350 jobs lost as production is scaled-back at the site (current carrying value £47m or €53.7m) and assets written-off. Around 100 remaining staff will focus purely on chocolate desserts.

Announcing its half-year results to June 30 2011 today, Uniq reported profits before significant items and costs up 47% to £4.7m or €5.37m (£3.2m: 2010) as a result of strong trading within its 'food to go' division (sandwiches, salads) and desserts restructuring.

However, dessert sales fell 8.2 per cent due to contractural losses for low-margin products and Uniq's recent exit from cottage cheese, with the division posting a £1.1m (€1.26) loss over the period.

And despite reporting "positive progress" in more lucrative premium dessert sales, Uniq said Cadbury chocolate dessert sales (with products produced under licence) were flat.