Huge blow for Dairy Crest workers
The fight to save jobs at one of Shropshire's biggest food companies suffered a blow today after Dairy Crest announced a multi-million pound drop in profits.
More than 160 jobs are under threat at the company's Crudgington creamery, which is set to close over the next 18 months.
And today the firm, which makes top brands such as Cathedral City and Country Life, revealed the cost of its 'challenging' trading conditions.
Pre-tax profits for the six months to the end of September fell by 16 per cent to £19.1 million, and sales were also seven per cent down, at £688.2 million.
Sales in the company's dairy division – where Dairy Crest has this month increased the price it pays Shropshire farmers for their milk – were down 11 per cent, but the company reduced its debts by selling off its St Hubert food distribution business in London.
Dairy Crest chief executive Mark Allen said: "The company has had a busy first six months as we continued to navigate a challenging trading environment. The decisive actions we have taken during the period leave us well placed as we move forward.
"Despite the challenging environment we have continued to grow our key brands. We have reduced our cost base and made improvements to our dairies business. We expect this to benefit future profitability."
There was also gloom at Morrisons today, which revealed a further slide in sales as rivals stepped up the pressure with money-off coupons and special offers.
The UK's fourth biggest grocery chain, which has stores in Telford, Shrewsbury, Oswestry and Market Drayton, reported a 2.1 per cent drop in third quarter sales.
In a statement to the stock market this morning, it said: "With consumer confidence still fragile and high levels of promotional activity a persistent feature of the market, the trading environment has remained challenging through the period and sales were lower than anticipated."
