Latest results

PRELIMINARY RESULTS ANNOUNCEMENT

Dairy Crest today announces its audited results for the year ended 31 March 2010:

Financial Highlights:

2009/10

2008/09

Change

Revenue:

£1,629.7m

£1,647.6m

-1%

Adjusted profit before tax*:

£83.5m

£79.5m

+5%

Profit before tax:

£77.8m

£103.2m

-25%

Adjusted basic earnings per share *:

44.5p

45.0p

-1%

Basic earnings per share:

40.6p

56.8p

-29%

Operating cash flow **

£119.0m

£79.8m

+49%

Year-end net debt:

£337.2m

£415.8m

-19%

Proposed final dividend:

£13.6m

£13.0m

+5%

* Before exceptional items, amortisation of acquired intangibles and pension interest.

** Cash flow from operations less capital expenditure

Business Highlights and Recent Developments:

  • Dairy Crest has made significant progress this year:
    • - 5% increase in adjusted profit before tax

    • - 19% reduction in year end net debt

    • - Sales of key brands up 9%

    • - Sales of milk to major retailers up 8%

    • - New initiatives to generate £20 million annualised cost reductions

    • - Defined benefit pension scheme closed to future accrual

    • - 5% increase in final dividend

  • The Group has also invested for the future:
    • - Increased marketing investment has strengthened key brands for further growth

    • - New capital investment programme to improve liquid milk dairies
  • Trading at start of the new year is in line with our expectations