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Milk was dud but Dairy Crest's new formula should bring growth

Losses from its dairy division were greater than had been expected before it got rid of the business but this frees the group up to concentrate on other things
February 11, 2016

The dairy business has now been sold but ripples in the milk pond have still managed to rock the boat at Dairy Crest (DCG).

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The sale to Müller is certainly good news as it removes the company from a milk industry laden with oversupply and which is the subject of bitter supermarket price wars. But the "higher than anticipated" losses it endured before offloading the business mean lower-than-expected net proceeds of roughly £30m.

The bad news ends there though. Its cheese and spreads brands - including Country Life and Cathedral City - are performing well while the innovation in its Clover brand to launch a version free of articial ingredients has started well.