CLOVER and Cathedral City firm Dairy Crest today revealed sales growth of its five top-selling brands had more than doubled on the back of higher prices.
The dairy giant reported an 11% rise in sales of its key brands – Cathedral City, Country Life, St Hubert Omega 3, Clover and Frijj – in the three months to December 31, compared with the rate of 5% seen in the half-year to September.
It said 8% of the growth came from inflation and 3% from increased sales volumes as it faced rocketing costs of milk, vegetable oil and other oil-related products.
The group has been upping its selling prices where it can to recover some of the increases, but is also slashing costs across the group to help – targeting more than £20m of savings this year.
The group has also started using the internet to tender for suppliers as part of this cost cutting drive, covering supplies such as batteries for its milk delivery floats and diesel fuel.
Dairy Crest said further progress has been made on signing up new customers to its milk&more milk delivery internet proposition after launching a TV advertising campaign last month.
Milk&more is now within sight of the £1m weekly sales milestone, up from £800,000 in September, it added.
Dairy Crest operates a milk processing site in Aintree’s Long Lane, which is benefiting from the drive to boost doorstep milk deliveries, and a spreads factory in Kirkby.
It said despite the difficult economic environment, pre-tax profits for the nine months ended December 31 are in line with expectations.
Chief executive Mark Allen said today: “We are encouraged by the progress we have made so far this year and anticipate that we will maintain our momentum through the fourth quarter.
“We remain cautious about the economic environment for next year, but we are well positioned to meet the challenges.
“Our strong range of products and broad customer base will help with this. In addition, we will continue to innovate, control our costs and support our brands.”
Liverpool stockbroker Panmure Gordon said today: “Our forecast for £86.6m of profit before tax in financial year 2011 remains unchanged.”
Similar Posts:
- O2 parent group drives up profit, revenues and customer access
- Sportech on track to deliver expected profits
- Drugs giant Novartis reports strong quarter
- IRS Helping Ease the Pain at the Pump
- Strong recovery at InterContinental Hotels Group
Tags: Crest, Dairy Crest
Recent Comments