Dairy production group Dairy Crest (LON:DCG) shares tumbled nearly 8 percent on Wednesday morning, despite reporting increases in both pre-tax profit and revenue.
Adjusted pre-tax profit rose 3 percent over the course of the year to £62.3 million, aided by a 10 percent boost to revenue. Revenue growth was recorded across all parts of the business except the company’s “other” segment, despite ‘unprecedented’ cost inflation in the butters market.
Its cheese section did extremely well, with the famous Cathedral City brand recording 6 percent revenue growth and butter revenue up 25 percent.
Dairy Crest said in a statement that it was pleased with the progress:
“We have delivered a strong performance, broadly maintaining our industry-leading margins against a backdrop of unprecedented cost inflation in the butters market”.
However investors were less impressed with the news, leading to a 7.40 percent fall in share price (1000GMT).