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Dairy Crest (LON:DCG) said that results for the six months ended 30th September will be ahead of the last two years due to strong performances by both the Clover and Cathedral City brands. High butter costs led the company to restrict promotional activity for Country Life which has had a negative impact on sales volumes.
Management said that profits for the period would also be ahead of the last year, but retained the current full year guidance.
Chief Executive Mark Allen said: “Our Cathedral City and Clover brands continue to drive the business forward, supported by an exciting pipeline of new product developments. For Cathedral City to be named one of the UK’s top ten brands by consumers, alongside John Lewis, Amazon and Ikea, is testament to the power of the UK’s favourite cheese brand, and we see good growth potential in the UK and beyond.
Innovation is the cornerstone of this business and we’re looking forward to showcasing a number of examples at our Capital Markets event this week. Our Functional Ingredients business is progressing well and we are excited by the potential of the launch of the Promovita GOS ‘shot’.
Our balance sheet is in good shape and we are moving forward with the first phase of the expansion at Davidstow.”
Shares in Dairy Crest rose by 1.7% to 466.60p (as of 12:25 BST).