Dairy company Dairy Crest has announced falls in sales and profits for the year to 31 March 2005.
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Turnover was £1.349bn (US$2.6bn), compared with £1.362bn in the previous year. Profit before tax before exceptional items and goodwill amortisation was £84.2m, compared with £85.1m the year before.
The company said the reduction in turnover principally reflected the closure of its ingredients facility at Chard in July 2003.
“Dairy Crest has traded well in the year with our portfolio of brands making encouraging progress,” chief executive Drummond Hall. “Whilst it has been a particularly challenging year in fresh milk with unprecedented changes in supply arrangements to major food retailers, we have continued to invest in the long-term development of our brands and we have made sound strategic moves to strengthen our dairies business for the future. Trading at the start of the new financial year is in line with our expectations.”
During the year Dairy Crest lost a contract to supply milk to Tesco, but gained a bigger share of business with Morrisons and Sainsbury. “The year has seen unprecedented changes to the supply of fresh milk to the major UK food retailers resulting in a significant impact on the future profitability of our dairies business,” said Chairman Simon Oliver. “We have taken actions to strengthen the strategic position of our dairies business which leave us well placed to improve its future performance albeit from a lower base.”
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