24/Apr/2014 - Last News Update: 10:00

Dairy Crest reports £10m loss as milk unit hits results

Category: Business

Published: 24th May 2012 12:11:16

Dairy Crest has posted a multi-million pound loss due to the poor performance of its milk division and higher costs.

The maker of Clover spread and Cathedral City cheese made a net loss of £10.1m in the year to 31 March, against a profit of £77.8m a year ago. Revenue was up slightly at £1.63bn.

The firm said increased competition had hit its milk business, while costs went up by £80m.

It said it was thinking about closing two dairies as a result.

It added it was also consulting on making further depot closures and cutting a number of head office jobs.

Taking out exceptional charges - which included a large writedown in the value of the dairy business - profits were almost unchanged at £87.4m.

Away from the milk business, the company said it had performed well, with sales of Clover rising 17%. Sales of Country Life butter, however, fell as higher prices reflected rising input costs.

"Dairy Crest's results for the year demonstrate the continued benefit of being a broadly based business," said the group's chief executive Mark Allen.

"Double digit growth in our branded spreads and cheese businesses has offset unsatisfactory results in Dairies."

BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2012. Dairy Crest reports £10m loss as milk unit hits results [Online] (Updated 24th May 2012)
Available at: http://www.ukwirednews.com/news/1430712/Dairy-Crest-reports-10m-loss-as-milk-unit-hits-results [Accessed 24th Apr 2014]

News In Other Categories

  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
  • Quentin Tarantino: Judge dismisses Gawker legal case

    A judge in the US has dismissed Quentin Tarantino's case against gossip website Gawker, who he claimed helped leak his screenplay The Hateful Eight.
  • Cancer teen Stephen Sutton's donation 'transformational'

    A teenager with terminal cancer will make a "transformational difference" after raising more than £1.5m, the Teenage Cancer Trust has said.
  • Barclays bonus plans face mounting opposition

    Barclays' shareholders are gathering for the bank's annual general meeting in London as anger rises over its plans to pay higher bonuses.
  • Forest of Dean Wilderness Centre group 'makes final bid'

    A community group wanting to acquire a Forest of Dean outdoor education centre says it has offered its final bid.
  • Qualcomm shares dip on weak outlook

    Shares in Qualcomm, one of the world's biggest chipmakers, fell 5% in after hours trading as it issued a weaker than expected growth outlook.