Dairy Crest trading ‘in line with expectations’
The company said that trading in the first quarter was in line with expectations.
Combined sales volumes of Dairy Crest’s four key brands (Cathedral City, Clover, Country Life and Frylight) are in line with the same period last year.
The company also said that its outlook for the full year remains unchanged.
Mark Allen, chief executive, said the company’s branded business continues to perform well.
“Our butters, spreads and oils business is progressing well. Clover and Country Life have both built on the momentum from the second half of last year. Frylight sales are also growing strongly,” Allen said.
“At the same time, we are seeing the benefits of our investment in infant formula ingredients with improved operational efficiencies at our demineralised whey and GOS production facilities. We are successfully building the customer base for both products in partnership with Fonterra.”
David Cheetham, market analyst and FX broker at XTB.com said, “It’s been a challenging year in some respects for shareholders, with recent strong selling after the Brexit vote testing their resolve, but price has stood firm.”
He added that the 1.9% proposed rise in final dividend - which was approved at the company’s AGM on July 19 - represents a 2.7% yield at current market prices and due to the lack of any share price growth in the past 52 weeks will likely be warmly received by investors.