The UK's largest dairy processor Dairy Crest has made a full-year net loss after incurring impairment charges at its dairies business.
For the 12 months to the end of March, Dairy Crest made a pre-tax loss of GBP10.1m (US$5.8m) compared to a profit of GBP77.8m last year, the company reported today (24 May).
Exceptional non-cash impairment charges in its dairies division of GBP81.7m led to the reported loss, the group said.
Cash generated from operations fell 34% to GBP84.5m, while net sales edged up 2% to GBP1.63bn.
Sales of its five key brands were up 11% and included "record" market shares for Cathedral City and St Hubert in the fourth quarter, the firm said.
"Dairy Crest's results for the year demonstrate the continued benefit of being a broadly based business," said chief executive Mark Allen. "Double digit growth in our branded spreads and cheese businesses has offset unsatisfactory results in dairies."
Going forward, Allen said the company will continue to take "decisive strategic action" and "proactively" shape Dairy Crest for the long-term.
"In March 2012 we announced a strategic review of our French spreads business, St Hubert, which is progressing and since the year end we have also announced a series of actions to restore our dairies business to a satisfactory level of profitability in the medium term," he added.