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Dairy Crest annual profits curdle but company remains confident

Thu, 21st May 2015 09:19

Dairy food group Dairy Crest annual pre-tax profits plunged, dragged lower by the dairies division.In the year to 31 March, the group's pre-tax profits fell 59% year-on-year to £22.1m, while revenue declined 4% to £1.3bn and adjusted pre-tax profits slid 7% to £60.6m.The drop in profits was driven by slump in the diaries group profits, which plummeted 90% to £1.8m, while the cheese and spreads division made a profit of £66.9m, a 19% increase from the corresponding period in 2014.Earlier this year, the FTSE 250 group agreed to dispose of its diaries division to achieve a more streamlined business style and in a statement released on Thursday, the group described the decision as a positive development for the company and the wider UK dairy sector.Analysts at Shore Capital reiterated their 'buy' rating on the stock, although they warned of uncertainty around the sale of the business."We retain our view that Dairy Crest stock would be rerated if clearance for the dairy sales is achieved, though with uncertainty expected for a number of months, we would be surprised if the stock is weak today," they said.The London-listed company said it was well positioned for sustainable growth, adding it had met its target to deliver annual cost savings of over £20m."We expect that our net debt, which at the year-end remains within our target range, will fall once we have completed our major investment projects," said group chief executive Mark Allen."The receipt of the proceeds from the sale of our dairies operations will accelerate this reduction."Dairy shares were down 4.42% to 495.10p at 09:41 on Thursday.
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15 Nov 2016 12:30

Tuesday broker round-up

(ShareCast News) - Dairy Crest: Jefferies downgrades to underperform with a target price of 500p. Royal Dutch Shell: HSBC reiterates buy with a 2360p target. Polymetal: Jefferies stays at underperform with a 700p target. Tesco: Credit Suisse reiterates underperform with a 130p target. Paddy Power

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15 Nov 2016 09:08

Dairy Crest slumps on Jefferies downgrade

(ShareCast News) - Dairy Crest slumped on Tuesday as Jefferies downgraded the stock to 'underperform' from 'hold' and cut the price target to 500p from 640p. The bank said it was returning to the stock in light of last week's first-half numbers, which showed profits ahead double digits. However, it

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14 Nov 2016 10:38

Monday broker round-up

(ShareCast News) - Dairy Crest: JP Morgan keeps at neutral with a target price of 600p. Tesco: HSBC upgrades to buy with a 260p target. Inmarsat: Jefferies stays at buy with a 1245p target. Aggreko: Barlcays reiterates overweight with a 1000p target. SSE: Goldman Sachs keeps at neutral with a 160

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11 Nov 2016 10:27

Broker tips: Tullow Oil, SIG, Dairy Crest

(ShareCast News) - Tullow Oil's shares were under the cosh on Friday as Canaccord Genuity downgraded its rating to 'sell' from 'hold' but raised its target price to 230p from 220p. Canaccord said the issues Tullow highlighted in its 9 November trading update on the Tweneboa, Enyenra, Ntomme (TEN) fi

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11 Nov 2016 08:18

JPMorgan downgrades Dairy Crest to 'neutral'

(ShareCast News) - JPMorgan Cazenove downgraded Dairy Crest to 'neutral' from 'overweight' as the stock has surpassed its 600p price target. The bank said Dairy Crest's results on Thursday showed the group achieved positive volume growth in its key brands in the first half, despite a decline in the

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10 Nov 2016 07:49

Dairy Crest reports 19pc rise in first half profits

(ShareCast News) - Dairy Crest reported a 19% increase in adjusted pre-tax profit to £19.1m in the first half as the company underwent a restructuring. Revenue fell 7% to £190m in the six months ended 30 September, reflecting deflationary pressures in its markets. Despite a challenging market, the

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20 Sep 2016 15:21

Tuesday newspaper share tips: Dairy Crest, Mitie

(ShareCast News) - Dairy Crest shares are still a buy, despite the most recent concerns surrounding increases in two of the key commodities which the company relied upon, The Times's Tempus said. Indeed, at least to an extent the drop in the stock after the company warned about the potential negativ

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Dairy Crest churns out flat first quarter

(ShareCast News) - Dairy Crest said first-quarter trading was in line with full year expectations as combined sales volumes of key brands Cathedral City, Clover, Country Life and Frylight were in line with the same period last year. The FTSE 250 group said the relaunch of Cathedral City with new pac

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19 Jul 2016 06:48

Dairy Crest Outlook Unchanged As First-Quarter Trading In Line

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