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21 Aug 2018
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07 Jan 2020
Dairy Crest dairies acquisition deepens Muller losses
Muller has announced an operating loss of £132.9 million in 2017, with costs from the acquisition of Dairy Crest dairies hitting profits.
Alex Black
The processor cited a challenging trading environment.
“Trading in the liquid milk market has continued to be challenging due to intense competition from both national and local milk processors,” it said.
“The business’ focus has remained on identifying cost reduction activities within our supply chain and delivering these in a professional manner, whilst exploiting synergies following the acquisition of the Dairy Crest dairies division.”
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One off costs from the Dairy Crest dairies acquisition had been incurred integrating operations, processes and systems. However, this was also the main reason behind a 6 per cent increase in sales to £2.1bn.
“Following the acquisition of the Dairy Crest dairies division, one off costs have been incurred integrating operations, processes and systems of the newly acquired business.
“This work is on-going and is expected to be completed during 2018.”
The processor has also lost volume market share in the chilled yogurts and potted desserts category.
“However, we continue to have leading brands in the yogurt branded market.
“Value shares grew in desserts but decreased slightly in yogurts due to pricing pressure by retailers.”
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