Dairy Crest has won new business with Tesco and Budgens, which it says will offset the loss of its £20m milk supply contract with Asda.
Chief executive Drummond Hall said: “We have secured a deal to supply 29 more Tesco stores in April and have won a contract to supply Budgens which will offset this loss.”
Dairy Crest’s consumer foods division has reported steady full-year growth, fuelled by St Ivel spreads, Yoplait Dairy Crest brand sales and liquid products.
The company expects its new Davidstow creamery, which will be able to process 55,000 tonnes of cheddar a year, to be operational from next month.
Dairy Crest said operating profit in its consumer foods division grew 16% from £62.4m to £72.2m in the year to March 31 on sales which had climbed 8%, from £815m to £880m.
Group sales rose 3% to £1.36bn but pre-tax profit fell 5% to £45.6m. Finance director Alastair Murray attributed the fall partly to exceptional costs of £27m this year and a one-off credit in the previous year due to property disposals.
>>p8 Asda milk supply