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Interim Announcement Sept 2011

Dairy Crest's unaudited results for the six months ended 30 September 2011:

* before exceptional items, amortisation of acquired intangibles and pension interest.

Increased first half profits from broadly based business

- adjusted profit before tax up 9% benefiting from increased property profits 
   of £4.6 million from continued rationalisation of depot network
- higher profits in Spreads and Cheese offsetting lower Dairies profits
- adjusted basic earnings per share up 16% helped by lower effective tax rate

On track with efficiency savings

- Annual efficiency savings of £20 million help offset higher input costs

Continuing growth in branded sales

- Sales of five key brands up 5% in aggregate
- Strong performance from St Hubert in France
- Increased selling prices also helped offset higher input costs
- Four new branded ranges launched
- milk&more weekly sales up to £1.2 million
- Branded food business MH Foods acquired for £12.3 million (net of cash)

Debt refinancing complete

- Bank funding in place through to 2016

 Mark Allen, Chief Executive, said: 

"Dairy Crest has delivered a robust performance during the first half of the year.  In line with our strategy, we have continued to grow our key brands, reduce our costs and control our debt.

We are concentrating on implementing initiatives that will deliver long term value for everyone involved with our business - providing consumers with high quality and great value, paying a fair milk price to farmers and continuing to invest in marketing, innovation and facilities.

 Looking forward, the consumer environment is challenging and increasingly difficult to predict.  Despite this, we remain confident that we will deliver profits for the year in line with our expectations."

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