Dairy Crest surged 23.6 to 372.6p after Germany's Theo Mueller Group, which makes M�ller yoghurts, said it had acquired a 3pc stake in the London-listed company. The move triggered speculation the secretive German dairy giant may be lining up a bid for Dairy Crest.

Damian McNeela, an analyst at Panmure Gordon, told Bloomberg: "This indicates that Mueller may make a formal offer for Dairy Crest � they might be looking to widen their product base in the UK".

http://www.telegraph.co.uk/finance/markets/marketreport/8033253/Vedanta-Resources-hit-by-Indian-copper-mine-closure.html

RNS Number : 2806X

Dairy Crest Group PLC

13 February 2012

13(th) February 2012

Dairy Crest Group plc ("Dairy Crest") and Quadra Foods Limited

On 2(nd) February 2012 Dairy Crest issued an Interim Management Statement in which it confirmed that overall trading was in line with its expectations. Its underlying trading has continued to be in line with expectations since that date.

Dairy Crest wishes to inform the market that a customer, Quadra Foods Limited ('Quadra'), has called in Administrators. As a result Dairy Crest anticipates it will increase its bad debt provision by up to GBP4 million. This is the total debt owed to us by Quadra although we are looking at several options to reduce the amount involved.

We expect to treat any charge as an exceptional item in 2011/12 and as such it will not impact on our dividend considerations. Dairy Crest has annual sales of GBP1.6 billion and this is an isolated incident. It will have no material effect on our year end borrowings.

Dairy Crest Group plc ("Dairy Crest") announces strategic review of its French branded spreads business ("St Hubert")

Dairy Crest, the UK's leading dairy foods company, today announces that it is to commence a strategic review of its French branded spreads business. The review will evaluate all possible options available to Dairy Crest to maximise shareholder value, including a potential divestment of St Hubert.

Might see a bit of a recovery in this one, skinny, though they must have been disappointed that Müller preferred to buy out Robert Wiseman Dairies. Competition can only increase with their huge distribution machine grinding away and eating away at DCG margins. Not one I would be happy holding long term as they are mired in debt and by the look of it their credit control is also suspect (£4m arrears from one customer!). Still, 380p looks achievable, so long as we don't see a big downturn in the market over the summer months.

Agreed Harry - I have held in the past - yield 5.96% and ex dividend in June coupled with those magic words - "The review will evaluate all possible options available to Dairy Crest to maximise shareholder value".

Stopped for +10 (SB).

Hmmm - typical.

Pre-close Trading Update.

Update on Dairy Crest's Dairies business


The Board of Dairy Crest is today announcing a proposal to consult on the closure of two dairies. This is part of its long term plan to reduce costs and sustain profitability in an extremely challenging market environment for its liquid milk business.

The Board is also reporting an improved year-end net debt position.

Final Results.

Financial Highlights

· Total Revenue up 2%
o Strong growth in Foods (revenue +10%), supported by continued progress from key brands
o More focused Dairies business (revenue -2%), as action taken to improve customer mix

· Adjusted profit before tax maintained in challenging trading conditions

· Exceptional non-cash impairment charges in Dairies of £81.7 million leads to a reported loss

· Key net debt to EBITDA ratio at 2.2 well within covenant of 3.5

· Proposed final dividend up 4% at 14.7p per share, demonstrating a commitment to progressive dividend policy

Operating Highlights

· Sales of five key brands up 11%
o Record market shares for Cathedral City and St Hubert in fourth quarter

· Innovation driving added value sales and efficiencies
o 10% of sales now derived from products and services developed in the last three years, such as Chedds and Frijj the Incredible
o Milk&more weekly sales up to £1.2 million

· Input cost increases of around £80 million recovered through cost savings and selling price increases

· £22 million annualised cost savings delivered during the year, with a further £20 million identified for 2012/13

· Business In The Community gold award reflects strong commitment to Corporate Responsibility

Strategic highlights

· Strategic review of French Spreads business progressing

· Decisive steps taken since year end to return Dairies business to a satisfactory level of profitability in the medium term

· Branded food acquisition, MH Foods, widened product portfolio

Ex dividend on 20th (payable 2nd August). 14.70p (6.21% yield).

Proposed disposal of St Hubert

Proposed disposal of its French branded spreads business, St Hubert SAS ("St Hubert")

Overview

Dairy Crest, the UK's leading dairy foods company, today announces that it has received a binding offer from Montagu Private Equity SAS regarding the proposed disposal of the entire issued share capital of St Hubert for a consideration of €430 million (£3441 million) payable in cash (the "Transaction").

AGM and Interim Management Statement

Trading in line with expectations and St Hubert sale creates opportunities

Dairy Crest's overall trading in the first quarter has been challenging, especially in our Dairies business. However our expectations for the full year remain unchanged. Our financial position remains in line with our expectations.

As expected it has been a difficult quarter for our Dairies business, along with the rest of the sector. However, we have taken decisive steps to return it to a satisfactory level of profitability. We have set a medium term target of 3% return on sales and are making progress towards it. Plans to close two dairies announced in April are on schedule and resulting capacity reductions are allowing us to improve selling prices in parts of this business. Lower returns from commodity cream markets have also led us to announce milk purchase price cuts. Regrettably these cuts have put pressure on our supplying farmers and we are working with them on plans to reduce the impact of these cuts. These plans include the early adoption of a new code of practice in relation to our milk supply contracts.

Trading Update

Dairy Crest is issuing the following pre-close trading update for the six months ending 30 September 2012 ahead of announcing its Interim Results on 8 November 2012.

Trading in the first half of the year has remained challenging and our profits, having adjusted for the disposal of our French spreads business, St Hubert, will be lower than the same period last year. However, our profit expectations for the full year ending 31 March 2013 remain unchanged.

Strong momentum in Brands

Our four key UK brands (Cathedral City, Country Life, Clover and Frijj) have continued to perform strongly in the first half. Increased marketing expenditure behind these brands is supporting this growth. All four have been advertised on television in the period - the first time that has ever happened.

Innovation remains a focus in our ongoing drive for added value sales. For example, Chedds, natural cheese for children (whose annual retail sales now exceed £7 million), Frijj Incredibles and Cathedral City Selections are all performing strongly. Further innovations are planned for the second half, including a long-life variant of Frijj. This is aimed at the convenience market and provides a significant opportunity for further growth.

As part of our continued drive to grow and improve efficiency across our business, we have decided to consult with employees on plans to consolidate our spreads production into a single UK location, our existing facility at Kirkby, Merseyside. As a result of the consolidation our site in Crudgington, Shropshire, will potentially close in 2014.

Decisive action in Dairies

Our Dairies business has been facing unprecedented market conditions but we remain focused on achieving a 3% return on sales in this business in the medium term. We continue to take a number of decisive actions to achieve this, including implementing milk selling price increases, closing our Aintree creamery, consolidating milk rounds to allow the closure of 23 depots in the six months and reducing overheads. Plans are on track to close our Fenstanton dairy, as previously announced, this autumn.

We increased the price we pay our non-aligned supplier farmers for milk by 1.85 pence per litre from 1 October 2011, but a steep fall in cream prices led to a price reduction of 2 pence per litre from 1 May 2012. A second planned reduction, due to take place on 1 August 2012 was postponed while we negotiated price increases with our customers and this had a small adverse effect on profits in the period.

We have today announced higher farmgate milk prices for our suppliers. These reflect the expectations of improving returns from commodity markets and higher selling prices.

Improved financial position

Following the sale of St Hubert, our financial position is much improved. We received €430 million on 28 August 2012 which has been used in part to repay drawdowns from our revolving credit facility. The balance has been placed on short-term deposits, with the position for the longer term currently under review. Our aim in deploying cash will be to preserve the Group's capacity to make acquisitions, while providing appropriate long-term funding for the pension fund and driving towards a more efficient debt structure.

Mark Allen, Chief Executive, commented: 'We are pleased with our first half performance despite the significant pressures on our business. Although we expect these to continue into the second half our first half performance together with our plans for the second half means that our profit expectations for the full year remain unchanged. At the same time we have continued to move the business forward and the proceeds from the sale of St Hubert leave us much stronger financially.'

Dairy Crest is hosting a visit for analysts and investors at its Kirkby Spreads manufacturing facility on the afternoon of Monday 24 and Tuesday 25 September. The management team will make presentations on our Spreads and Dairies Businesses, as well as the Group's sales and marketing activities. These will be made available on Dairy Crest's website at www.dairycrest.co.uk/investors. No material new information will be disclosed in these presentations.

Up nicely with a good divi. +6% on 4-1-2013 I think.

Interim Management Statement


Half year ended 30 September



· Much improved financial position following successful disposal of St Hubert

- St Hubert sold for €430 million, generating a post-tax profit on sale of £47.7 million
- Balance sheet transformed. Net debt: EBITDA ratio 0.7x (2011: 2.4x)
- Well placed to make targeted, value-enhancing acquisitions in the UK

· Strong performance from key brands and new products

- UK Spreads and Cheese sales jointly up 3%
- Four key brands together recorded double digit volume and value growth
- New products, Chedds and FRijj the Incredible, now firmly established
- Further innovation planned for second half
- Increased A&P investment to maintain momentum - all four brands on television in the period

· Accelerated efficiency cost savings

- Ongoing costs discipline throughout business
- Annual cost savings ahead of £20 million target

· Dairies profits lower in continuing difficult trading environment

- Sales down 11% in line with strategy to reduce exposure to this sector
- Milk price support for supplying farmers in challenging times
- On track with clear plan to restore 3% return on sales in the medium term

Dairy Crest profit hurt by milk business
Thu 08 Nov 2012

DCG - Dairy Crest Group



LONDON (SHARECAST) - Cathedral City cheese maker Dairy Crest said first half profits fell 16 per cent as its milk business continues to struggle.

The group said adjusted pre-tax profit fell to £19.1m for the six months ended September 30th from £22.7m the same time a year earlier. Revenue for the period fell to £688.2m from £739.1m before.

Sales of its four key brands Cathedral City, Country Life, Clover and Frijj rose 11% in the half-year period.

However its dairies business suffered lower profits amid a difficult trading environment. Sales were down 11% in line with strategy to reduce exposure to this sector.

Milk producers such as Dairy Crest are struggling to give farmers better prices while supermarkets seek lower prices in a competitive market.

Dairy Crest said it is on track with a plan to restore 3% return on sales in the medium term.

Chief Executive Mark Allen commented: "Dairy Crest has had a busy first six months as we continued to navigate a challenging trading environment. The decisive actions we have taken during the period leave us well placed as we move forward."

Following the sale of St Hubert, the group said it has a more focused business and a much stronger balance sheet. "We now have the ability to make UK acquisitions," it added.

Despite the challenging environment, Dairy Crest said it continues to grow its key brands while reducing its cost base. Improvements to the dairies business are expected to improve future profitability.

"We remain confident that full year performance will be in line with our expectations."

Half year net debt was significantly reduced to £75.8m from £365.3m previously.

The interim dividend has been held at 5.7p.

Trying the 360 level again.

Milk price increases from Dairy Crest

Looking to close above £4.

MIDAS SHARE TIPS: A chance for investors to cream a profit at Dairy Crest



By Joanne Hart

PUBLISHED:22:17, 19 January 2013| UPDATED:22:17, 19 January 2013

Anyone who has bought a cut-price burger from a supermarket recently will almost certainly be wondering what was in it. The horse meat scare is the latest in a series of food industry scandals that all seem to arise when price is more important than quality.


Fortunately, Dairy Crest Group is not in that position. The company has nothing to do with meat and is keenly aware of the need for high standards at its facilities. At 4001⁄2p, the shares offer good, long-term value.


The firm supplies a third of the country’s milk, including all that sold by Waitrose and Marks & Spencer. Sainsbury’s and Morrisons – but not Tesco – are key customers, too, as well as corner shops, hospitals and restaurants. It even delivers milk to a million homes.





Milk monitor: Mark Allen is pushing for greater efficiency at Dairy Crest, which delivers dairy goods to a million British homes

The company buys about four billion pints a year from farmers and chief executive Mark Allen is known for his desire to see them get a fair price.


But milk is a commodity and profit margins are low, so Dairy Crest has to work hard to deliver returns to investors and keep customers and suppliers happy. The firm has made tangible progress towards that end and Allen intends to lift the milk division’s profits from about £10 million to about £30 million over two to three years.


Dairies are being merged, new machines have been acquired that process milk faster and more efficiently and the business has invested heavily in software that will ensure it transports milk more cost-effectively. The firm is doing much better with dairy products, such as Cathedral City cheddar and Frijj milkshakes.

Sales of Cathedral City have doubled over the past five years and the cheese was recently voted one of British consumers’ most trusted brands – the only food in the top ten. Frijj sales are growing strongly, too, and a long-life version, which can be sold in petrol stations and other outlets with limited fridge space, was recently launched.


Dairy Crest makes Country Life butter, Clover spread and other similar products. This market is highly competitive, but Allen is merging two factories next year to boost efficiency.


The group has also launched an internet ordering service, Milk & More, using its milk floats to deliver groceries daily.


And last year, Allen sold French spreads firm St Hubert for £344 million, since when he has been looking for acquisitions.


For the year to this March, brokers expect profits of £50 million rising to nearly £60 million in 2014.


The dividend is forecast at 22p in 2013, rising to 23p in 2014, so the stock is on a yield of more than five per cent.


Midas verdict: Dairy Crest is a well-regarded food company, doing its best to maintain standards and increase profits in a tough market. However, milk prices have at least started to rise recently and the outlook is better than it has been for years. The shares should increase. Buy

Interim Management Statement


Dairy Crest continues to cope well in a challenging environment and overall trading remains in line with our expectations. We remain focused on growing added value sales and improving efficiency across the business. Our four key brands continue to grow, aided by good performances from the innovative new products launched in recent years. We are on track to exceed our annual cost savings target by delivering savings of around £23 million this year. We have already identified several meaningful projects for next year that should enable us to maintain our track record in this area.

The sale of St Hubert has significantly strengthened Dairy Crest's financial position, and has provided a strong foundation for the future. Our aim in deploying the cash from the transaction is to make targeted acquisitions. We are determined that any acquisition must deliver strong returns for shareholders but, to date, we have not identified any such acquisition. Our short-term focus is on improving our debt structure in order to reduce future interest costs, improve earnings and underpin our dividend. We also continue to work on providing appropriate long-term funding for the pension fund.