Loss of Tesco contract hits UK dairy giant profits

Dairy Crest today reported a decline in pre-tax profits after rising energy costs and the loss of a contract to supply milk to Tesco outweighed strong sales of its branded cheeses and spreads.

The UK’s second largest dairy company – behind Lurpak butter maker Arla – said it had delivered results in line with market expectations for the year to March 31, with pre-tax profits down 10.5% to £67.7m (€99.12).