Harper Adams innovation centre helps Dairy Crest deliver jump in sales from new products
A new development centre in Shropshire has helped butter and spreads maker Dairy Crest deliver "industry-leading" levels of innovation, as the business hailed "robust" trading.
Despite revenues falling by one per cent to £416.6 million in the year to March 31, chief executive Mark Allen said he was excited about the company's future.
Adjusted pre-tax profit was up five per cent to £60.6 million, while revenues from key brands were down six per cent, which was in line with the company's expectations.
Last year, Princess Anne opened a new £4 million innovation centre at Harper Adams University near Newport, and the company said this was already bearing fruit.
So far it has helped deliver products including a new Clover spread without artificial ingredients, and that in turn helped 13 per cent of sales come from innovation, which the company said was an industry-leading figure.
Other new products to have been delivered with support by the company's innovation team are an avocado spray oil for cooking, a Cathedral City snack bar range, a new spreadable form of the cheese brand, and a dairy-free form of the Vitalite spread which is made with coconut oil.
The results are the first since the company sold its dairies business to Muller, a deal which was completed on Boxing Day 2015.
Historically, the company had a large factory making spreads at Crudgington near Telford, but its closure was announced in 2014, and the site has since been demolished. The company employs about 40 people at the Harper Adams centre.
Mr Allen said: "In the first full year since the transformational sale of our Dairies business, we have delivered a robust performance in a tough market.
"Our industry leading margins are the result of our focus on driving long-term value through brand building, innovation, investment in a world class supply chain and strong cost control.
"Our key brands are performing well. Cathedral City remains the nation's favourite cheese and following its brand refresh at the start of the year, the good progress and momentum we have seen in the last six months has continued in the new financial year."
He added: "Looking forward, I am excited about the future for Dairy Crest. The business is well positioned to deliver profitable, sustainable growth and stronger cash generation. This underpins our commitment to growing our dividends and reducing debt."
