A rebound in Clover and Country Life volumes during the second half of the financial year helped brand owner Dairy Crest (DCG) report a resilient set of full-year results, despite wider industry contraction. It also helps that the business has undergone a serious transformation in the past year or so, finally offloading its lossmaking dairies business last December. In combination, volumes across the company's four key brands - Clover, Country Life, Cathedral City and Frylight - rose 2 per cent during FY2016.
Following the divisional sale, Dairy Crest bosses believe the business is "simpler, leaner and more responsive". It's down to only operating five manufacturing sites and employs fewer than 1,200 people, but chief executive Mark Allen says there are further ways to streamline the group. This includes overhauling existing IT systems and improving line performance efficiency at its production sites.
Cash-generation from continuing operations rose 46 per cent to £82.9m during the period, but Mr Allen says this will improve further now the disposal has removed a significant drain on funds.
Analysts at Shore Capital expect pre-tax profits of £61.5m for the year ending March 2017, giving EPS of 36.4p, compared with £57.7m and 34.2p in FY2016.
DAIRY CREST (DCG) | ||||
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ORD PRICE: | 565p | MARKET VALUE: | £794m | |
TOUCH: | 564.5-565p | 12-MONTH HIGH: | 700p | LOW: 480p |
DIVIDEND YIELD: | 3.9% | PE RATIO: | 20 | |
NET ASSET VALUE: | * | NET DEBT: | £229m |
Year to 31 Mar | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2012 | 1.51 | -41.7 | -21.9 | 20.4 |
2013 | 1.38 | -10.7 | -5.9 | 20.7 |
2014 | 1.39 | 54.2 | 35.8 | 21.3 |
2015 (restated) | 0.45 | 36.8 | 21.5 | 21.7 |
2016 | 0.42 | 45.4 | 27.9 | 22.1 |
% change | -6 | +23 | +30 | +2 |
Ex-div: 7 Jul Payment: 11 Aug *Negative shareholders funds |