Dairy Crest shares churn on losses from in its dairies division
Dairy Crest shares fell today after the company said losses in its dairies division continued ahead of its sale to German group Müller.
The company, which owns Cathedral City cheese and Frijj milkshakes, now expects net proceeds from the sale before working capital adjustments to be around the lower end of £40m to £50m.
Dairy Crest added that the impact of the losses on sales proceeds, as well as the £6m acquisition of Promovita shares, would increase its net debt.
The company's shares closed down 0.74 per cent to 600p per share today, having fallen as much as 3.3 per cent to 584.5p this morning.
On a brighter note, sales at its four key brands – Cathedral City, Country Life, Clover and Frylight – were largely in line with the same period last year.
"This is a robust performance in what remains a deflationary environment for both cheese and spreads," Dairy Crest said.
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