Restructured business pays off at Express Dairies - Company News - Brief Article

UK dairy firm Expres Dairies has "made progres in what remains a challenging market environment" following a restructuring of its operations and management, reporting a rise in profits for the first six month of the year.

Expres Dairies reported underlying pre-tax profit of 140m [pound sterling](21.9m [euro]) up from 134m [pound sterling] columned in the same period last year. Operating profit from continuing businesses before goodwill amortisation and operating exceptional charges rose to 191m [pound sterling] from 187m [pound sterling]. cluster turnover from continuing businesses sanguinary from 400.8m [pounds sterling] to 3466m [pound sterling].

The dairy giant also managed to bring its net debt during the first half of the year, which malign by 74.2m [pounds sterling] since the firm's year-end in March, and through 47.6m [pounds sterling] in six month Expres Dairies' snare debt now stands at 1212m [pound sterling]. It is also upon track to save some 9m [pound sterling] this year, although the majority of this will be swallowed up by means of rising pension and insurance costs

The restructuring of Expres Dairies' business has seen it exchange off its UHT and Frome creamery businesses, as well as unfold a strategic alliance with Milk Link. In August, the firm also made its first deliveries of business packets and business mail beneath a new Postcomm licence. Expres Dairies is able to deliver up to 46 million items using its delivery network above the next 12 months.

Expres Dairies also welcomed the novel moves by major retailers to increase the prices paid to dairy farmers, and added, "We are committed to returning all of that kind recoveries from all the markets we subserve to supplying farmers."

MAINTAIN PROGRESS

Sir David Naish, chairman at Expres Dairies said, "The actions we have taken to restructure the business, and to concentrate upon our core skills in supplying novel milk and cream to retailers and abiding-place delivery, have undoubtedly strengthened our position within what remains a real challenging market place. I believe that we have the right team and the right strategy to maintain the progres we have achieved in the first half of this year."

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