“We expect sales of our key brands to perform strongly as the year progresses,” said the statement.
First quarter aggregate sales of the firm’s four key brands – Cathedral City, Clover, Country Life and Frylight – were in line with the first quarter of last year. But the business repeated its warning that combined performance of its Cheese and Spreads businesses will be weighted towards the second half of the year.
‘Higher sales of Cathedral City’
Dairy Crest chief executive Mark Allen said the year had started as expected. “Higher sales of Cathedral City and Frylight are encouraging in markets that remain challenging,” said Allen.
“Our demineralised whey and GOS projects are nearing completion and we will see the full benefits next year. We are also making progress with the sale of our Dairies operations and we expect this to complete before the end of 2015.
Dairy Crest confirmed the Competition and Markets Authority was studying the undertakings offered by Müller to allay fears of reduced competition and said a further update was expected August 21.
The project to make demineralised whey powder and galacto-oligosaccharide at its Davidstow creamery was nearing completion and the firm expected to start selling both products this financial year.
New sales channels
The first full-year benefit from the new products, which were said to give Dairy Crest access to new sales channels in growing global markets, will come in the year ending March 31 2017.
Lower milk costs will make a significant difference to the carrying value of cheese stock and working capital, predicted the business. Net debt was expected to peak around mid year.
The business was well positioned for profitable and sustainable growth and full-year expectations remain unchanged, concluded Allen.
Its AGM tool place in London yesterday (July 14).
Meanwhile, Dairy Crest planned to post its half-year trading update on September 22 and its interim results for the six months to September 30 on November 5.