Dairy Crest first quarter sales strong

By Matthew Scuffham

LONDON (Reuters) - Chilled foods company Dairy Crest (DCG.L) reported a 14 percent rise in first-quarter sales at its foods division on Thursday, sparking a sharp rise in the share price.

Dairy Crest, which makes Cathedral City cheese, Yoplait yoghurts and Clover low-fat spread, said it had performed in line with its expectations during the period and its expectations for the full year remain unchanged.

It said price increases and cost savings had "broadly offset" input cost inflation and its expectations for the full year remain unchanged.

"Every one of the brands is in good shape. We've got double-digit growth right across the piece," Chief Executive Mark Allen told Reuters in a telephone interview.

Allen said the group has seen no impact so far from the consumer slowdown, saying its brands are "staple everyday products" which shoppers will always require. He does not see a danger of consumers trading down.

"I don't think so if you've got a strong brand that consumers know and trust and buy into, as long as you are sensible with your pricing recommendations," he said.

In its dairies division, the group said sales in the three months to June 30 increased by 5 percent, reflecting price increases to offset the higher raw milk and commodity costs.

MILK PRICE