Dairy Crest reports 19% rise in half-year profits

Dairy Crest has reported a 19% increase in interim profits on the back of strong sales of its dairy products.

Adjusted profit before tax came in at £19.1m ($23.7m) for the six months ended 30 September compared to £16m in the same period a year ago.

In a statement, the firm said the Clover, Country Life and Frylight brands were all showing strong volume growth, building on momentum from the second half of last year.

The London-listed company said its expectations for the whole financial year were unchanged.

It unveiled new branding and packaging for its Cathedral City cheese brand earlier this year and opted to discount less than competitors during the period.

The company sold its dairies business, which processes and distributes milk, to Germany's Muller in December last year.

"We are pleased to have delivered a strong set of interim results in our first full trading period since the sale of dairies," Dairy Crest chief executive Mark Allen said.

"Our four key brands are continuing to perform well in a challenging marketplace, with strong volume growth for Clover, Country Life and Frylight and a successful launch of new branding and packaging for Cathedral City.

"We are also seeing the benefits of Dairy Crest's transformation into a leaner and more focused organisation, with strong profit growth and significantly improved cash generation during the first half."

Dairy Crest's revenue fell 7% to £190m in the six-month period.