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Dairy Crest milks its brands

Dairy Crest's milk profits continue to be squeezed, but decent sales of branded products highlight why its shares are too cheap.
February 6, 2012

After the excitement of Robert Wiseman's takeover by Germany's Muller, a trading update from Dairy Crest served as a stark reminder that the UK milk market is not a happy place to be at the moment.

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Rising milk purchase costs and lower cream profits are squeezing profitability, although ongoing cost reduction and 8 per cent third-quarter growth of its branded products including Clover and Cathedral City will offset the weakness.