Express issues profits warning - Express Dairies - Brief Article

Eurofood, March 29, 2001

Express Dairies, the UK's leading supplier of liquid milk and cream, warned this week that underlying pre-tax profits for the year to March 31, 2001 would be below market expectations due to difficult trading conditions. The news sent shares tumbling 12 pence to 49 pence on March 20.

Express issued a statement saying trading conditions would remain difficult until further action is taken to eliminate surplus industry capacity. It expects to report pre-tax profits of around 43m [pounds sterling] (68.5m [European Dollar]).

The company said it had been affected by increases in the cost of raw milk, packaging and fuel and that the outlook remained difficult due to the continued uncertainty about the impact of foot-and-mouth disease.

Express added that owing to the challenging trading outlook it did not expect the historic low level of its dividend pay out to be maintained. It said it would revise its dividend policy in the next few weeks as the outlook for next year became clearer.