Dairy Crest Share Discussion Threads

[fardistanthills] 21/5/2015 20:56

Dairy Crest annual profits curdle but company remains confident
Sharecast

LONDON (ShareCast) - Dairy food group Dairy Crest (LSE: DCG.L - news) 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.

[fardistanthills] 13/5/2015 10:59

Sell off appears to be over ;-) For now?

[essentialinvestor] 16/2/2015 11:48

Sell off appears to be gathering pace.

[manrobert] 08/1/2015 17:46

any info on when they obtain clearance for milk sale..we hope.

[gbb483] 08/1/2015 17:14

Market climbs, yet DCG drops by twice the dividend. Loosing its way.

[gbb483] 20/11/2014 09:11

Yield also drops as a result, but even 4% would be difficult to beat.

[grahamite2] 20/11/2014 02:21

Out at 513. This was meant to be a lth for dividends but 40% in under 2 months is too good not to take.

[gbb483] 06/11/2014 22:00

So sell now and buy back when it drops?

[bench2] 06/11/2014 21:54

Wow ... a big thumbs up on decision to sell the liquid milk business . But Muller already owns Wiseman so the competition authorities may veto the deal !!!!!!!!!!!!

[mundungus] 06/11/2014 13:25

See the telegraph. DCG are selling their milk business to Muller in order to focus on more profitable lines.

[gbb483] 06/11/2014 12:39

13% jump today and noone notices.

[grahamite2] 30/9/2014 00:16

Blimey, gone up 5% in the 2 days since I bought.

[grahamite2] 23/9/2014 11:09

It could easily have another 10% down to go, but most of the froth has now come out of the price and this is looking attractive as part of the yield portfolio.

[skinny] 17/9/2014 07:06

The Board of Dairy Crest, the leading UK-owned dairy foods company, announces that Stephen Alexander will become the company's Chairman with immediate effect.

He replaces Anthony Fry, who was taken ill earlier this year. Anthony will leave the Board of Dairy Crest with immediate effect.

Stephen Alexander was appointed as a Non-executive Director in January 2011. He has been Chairman of the Remuneration Committee since May 2012.

Richard Macdonald, who has been Acting Chairman while Anthony has been unable to work, will resume his role as Senior Independent Director.

Mark Allen, Chief Executive of Dairy Crest, said: "It is sad that Anthony will no longer chair the Board. Anthony has had a significant influence on the business since his appointment as a Non-executive Director in 2007, and especially since he became Chairman in 2010. I shall miss working with him."

"Stephen has been a very strong non-Executive and makes an excellent replacement. I am looking forward to working more closely with him."

Stephen Alexander said: "I am delighted to take up the role of Chairman. Dairy Crest is a good business and I look forward to helping to continue to further develop the company."

Dairy Crest expects to issue its half-yearly trading update on 22 September 2014 and its Interim Results for the six months ending 30 September 2014 on 6 November 2014.
-ENDS-

[grahamite2] 03/9/2014 10:27

I like this for the yield, not too happy about the chart. Will see how September pans out.

[mundungus] 13/7/2014 19:29

See FT weekend article. Massive competition expected in the cheese market, which accounts for 50% of DCG's profits. European milk quotas restricting milk production end next year and other factors are expected to lead to a supply glut. SocGen have 440 price target.

[death by donut] 22/5/2014 12:57

hxxp://video.merchantcantos.com/

[death by donut] 22/5/2014 12:51

So profit attributable to shareholders LESS property sales is

£32 mil for y/e 14

£39 mil for y/e 13

Is that why it's falling today?

DbD

[skinny] 22/5/2014 07:10

Financial Highlights
· Adjusted profit before tax up 31% to £65.3 million, including higher profits from sale of surplus properties
· Year end net debt at £142 million leaves net debt to EBITDA within targeted range at 1.3 x
· Proposed final dividend payment of 15.4p taking full year to 21.3p, up 3%

Strategic Highlights
· Reorganised into one business structure
· Demineralised whey project on track to enhance annual profits by £5 million from 2015/16 - in exclusive talks with one customer
· Move to a single spreads manufacturing facility nearing completion
· Reduced cash contribution to defined benefit pension scheme from 2014/15

Operating Highlights
· Ongoing growth for Cathedral City ahead of market
· Continued focus on costs: £25 million annualised cost savings delivered in 2013/14, with a further £20 million identified for 2014/15
· Strong Corporate Responsibility commitment: highest UK ranked business by BITC

[grahamg8] 12/5/2014 11:56

Back in on the recent fall. Looking forward to FY results on 22 May and the final dividend being raised. Of course the share price might drop as 'profits ahead of expectations' have already been signalled at the Q3 IMS. But this RNS just produced a tiny blip in the share price. So it does look as if the market is waiting to see the numbers.

[skinny] 09/5/2014 06:39

The chart looks interesting again.

[m.t.glass] 06/5/2014 08:18

Headline stories over the weekend about China banning all imports of UK cheese might be of no direct relevance to Dairy Crest (Do they export any cheeses at all to China??) - but might plant enough of a worry in investors' minds to deter them until they see how the story pans out.




"The ban will remain in place until all UK cheese plants exporting to China are audited."

[jakedog2] 20/3/2014 11:42

Recent fall due to aniticipated margin errosion & pricing pressures from supermarkets ?

Comments appreciated

JD2