Dairy Crest Q1 trading in line, maintains full-year guidance

Dairy Crest maintained its outlook for the year on Tuesday as it said trading in the first quarter has been in line with its expectations.

In an update for the three months to 30 June, the FTSE 250 dairy products company said combined sales revenue of its four key brands - Cathedral City, Clover, Frylight and Country Life - was up 6% on the same period a year ago. Dairy Crest attributed the increase to the ongoing outperformance of the two largest brands, Cathedral City and Clover, which both saw revenues grow 10%.

Chief executive Mark Allen said 2018/19 has started as the company expected, with Cathedral City and Clover delivering a strong performance.

"While the butter market remains challenging, our spreads portfolio continues to go from strength to strength, demonstrating the benefit of our diversified portfolio. Our functional ingredients business is becoming more established and the customer base continues to build.

"Innovation is the cornerstone of this business and we expect to announce several new product launches before the end of 2018. Following the May capital raise our balance sheet is more robust and our expectations for the full year remain unchanged."