17th Sep 2018 08:15
LONDON (Alliance News) - Dairy Crest Group PLC said Monday it expects first-half revenue to be ahead of last year driven by "strong performances" in its two largest brands - Cathedral City and Clover.
Dairy Crest shares were trading up 1.9% at 467.69 pence each, one of the best performers in the FTSE 250 index in early trading.
For the six months ending September 30, the dairy products company said it expects cheese brand Cathedral City to deliver "good growth against strong volumes a year ago". Spreads brand Clover also is expected to deliver volume and revenue growth.
Chief Executive Officer Mark Allen said: "Our Cathedral City and Clover brands continue to drive the business forward, supported by an exciting pipeline of new product developments."
In mid-July, the FTSE 250-listed company had reported a 10% revenue increase in Cathedral and Clover for the first quarter to June 30.
Furthermore, Dairy Crest said it expects first-half profit to be "slightly ahead of the same period last year", as it confirmed its full-year outlook.
Oil brand Frylight is expected to show a volume and revenue reduction for the six-month period, "in line with the broader UK oil market". Dairy Crest said this was due to "the unusually hot weather which impacted oil usage".
However, the company added that Frylight trading improved significantly in recent weeks and expects the upward trend to continue into the second half.
Last month, Dairy Crest launched a new version of Clover Light with no artificial ingredients as a response to consumers "wanting more natural products".
The company said that in the next few months it will release further products from Cathedral City, including a lactose free range.
Net debt is forecast to be "significantly lower" than last year following an equity issue concluded last May.
The company will publish its results for the first half on November 7.
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