emmany
16 Oct 2018
What's going on ? Just had a little look at them, and the problem seems to be cash flow related, if you go back to 2014, net debt was £142m, yet if you jump to now, it’s £265m, dividends paid out over the four year period total around £120m, £265 - £142 is £123m, meaning they are using debt to sustain the dividend. And minus dividend payments, the company is actually not making any money, at all, it is simply breaking even. So in reality, unless the company can cut costs and find growth to near enough double cash flow, despite the strength on it’s products, a dividend cut down the line is likely inevitable. Though the placing earlier in the year will likely delay this by a few years, but unless cash flow more than doubles over the next few years, a dividend cut, and a big one at that, is inevitable.
chocolatefox2
16 Jun 2018
What's going on ? Dairy Crest share price still appears to be very weak. Fundamentals and ratios appear to be strong (e.g. current ratio). So what is going on? Am I missing something here?
megaloss
15 Mar 2018
Re: What's going on ? I think there's a broker re-assessment in there we may have missed. The share drop may be a bit overdone, but like you I worry about the debt/cash flows...
winningstreak
14 Mar 2018
Re: What's going on ? Not poisoning our cheese, but almost certainly banningour cheese if not already a ban in existence from anotherspat some time ago.ws
Bobtheretiredbroker
14 Mar 2018
What's going on ? Shares down nearly 8% and all I can see is a "buy" broker recommendation, albeit with a target price cut to 650p.Are the Russians poisoning our cheese?
II Editor
05 Jan 2018
NEW ARTICLE: Stockwatch: A mid-cap for income and growth "At about 560p, is mid-cap dairy processing stock LSE
CGairy Crest poised to break out of a volatile-sideways trend between 500p and 700p over the last two years?Dairy Crest is off many people's radar in a mature bull market, dairy ..."[link]
winningstreak
09 Nov 2017
Profit whilst losing cash It often annoys me when a company making profits on paper is getting deeper into debt.ws
Bobtheretiredbroker
27 Sep 2017
Shares down 6% this morning... Shares opened around 582p this morning, now trading around 594p but still 5% down.I can't find any news since the trading update on the 18th. Does anyone know what's going on?
thirty fifty twenty
17 Sep 2017
at 606p i think poor results tomorrow i think DCG is walking a tight rope.it only has a small CASh flow after monies on the very high debt, then renegotiated pension full, the high dividend and necessary cap ex.milk prices have remained high - this must impact volumes, and bizarrely cream prices have contineud to soar - this must impact margins.anecdotally volumes of dairy based products are down from more vegans, more en tredn to go soya milk etc... and alocal cafe owener saying that alternatives to milk are noticeably being asked for more frequently. interestingly too their supplier was offering them an alternative to DCG spreads as the costs was now so high.and the whey extract is an unknown.we'll know more at 7am Monday!All IMHO, DYOR + BoLDCG is in my portfolio (short)
Rhigos
22 May 2017
Correction Re: Broker upgrade Weak Buy Clicked wrong button meant to click Weak Buy not Weak Sell.
Rhigos
22 May 2017
Broker upgrade, Numis raised to add Positive article in Investors Chronicle today and upgrade by Numis Securities. SP now 10% above recent low. SP been very volatile of late.Some good fundamentals forecast EPS growth 60.1%, Forecast yield 3.9% and ROE an impressive 110%.
nk1999
14 May 2017
Telegraph- Questor "The Questor Columnairy Crest profits up, but there's some whey to go: Once part of the Milk Marketing Board, there have been high hopes for Dairy Crest since it sold off its dairies in 2015. The shares have rallied slightly to their highest point since an interim management statement in February was met with disappointment and price targets were reined in. Last November, the company reported interest from a number of commercial partners after its academic trials showed up a potentially positive impact from putting galacto-oligosaccharide (GOS) into animal feed. In the meantime, GOS is already been sold for use in infant formula, along with demineralised whey, from its £40 million facility built in Davidstow, Cornwall. Dairy trader Fonterra is helping to build a customer base. Cathedral City volumes slipped 5% in the first half after promotional activity was reduced. The company is putting plenty of marketing dollars behind Frylight, its low-calorie cooking spray, and it appears to be working. Butter and spreads are taking market share. One of Dairy Crest’s corporate brokers, Peel Hunt, expects forecasts to be underpinned, with infant formula being helped by rising prices. The company’s developing export business should benefit from the strong pound and there is more cost to be trimmed, such as from the installation of a new IT system. Dairy Crest at 604.5p. Questor says “Hold” (at 604.5p)"
Rhigos
10 Feb 2017
Re: Int Management Statement nk1999, I think you are right. I should have read it more carefully. Only picked up a small addition this morning at 574.5, sadly for me SP fallen another 10p or so. Not too bothered as long as they do not cut dividend. Hope their gearing does not get too high.
nk1999
10 Feb 2017
Re: Int Management Statement I guess this is the past from RNS that has spooked the investors:"Balance sheetWe have seen further milk cost inflation since the half year and have now announced increases in the price paid to farmers of 8.28 pence per litre since June 2016. This represents an increase of 38%. Furthermore, market prices for cream have remained high after more than doubling in the first half of the year. The cream price determines the input costs for our butter business. These movements inevitably result in a short-term working capital outflow and, as a result, we now expect year end net debt to be somewhat higher than 31 March 2016. "
Rhigos
09 Feb 2017
Int Management Statement "The outlook for the full year remains in line with our expectations."Why then did SP fall 6.41% ???[link] few months ago DCG was my star performer out of 40 odd shares in my collection, but now showing a loss after holding for 6.7 months of 1.76%. I think they have been oversold today. Broker consensus is Buy, forecast yield 3.9%, ROE 28.6% pa, forecast PE 16 so not that pricey.I am going to place a small top up limit order to buy <= 575p and see what happens.
