Dairy Crest profits ahead of forecasts

DAIRY Crest yesterday told investors that profits were slightly ahead of expectations after strong trading from key brands including Cathedral City.

The group's improved guidance for the nine months to the end of December reflected a "strong performance" in the final quarter, helped by a further increase in sales of milk.

Since then it has benefited from the recent cold snap as increased demand caused a 17 per cent spike in milk volumes. Total sales were 1 per cent lower in the nine months to 31 December, reflecting lower sales of commodity ingredients and milk to non-major retail customers.