May 18 (Reuters) - Dairy Crest Group Plc
* Final dividend up 2 percent to 16.3 penceper share
* Preliminary results
* FY adjusted profit before tax 1, 2 up 5% to £60.6m
* Cathedral City returns to volume growth in second half - strong momentum in 2017/18
* Frylight, clover and country life spreadable all grow volume and increase market share
* Demineralised whey production meets targeted levels of infant formula grade
* FY revenue at £416.6m down 1%
* FY net debt at £249.8m, +9%
* FY profit before tax at £40.3 million , down 11%
* In first nine months of financial year cheese retail prices fell or remained stable
* Since christmas, however, we have seen evidence of prices increasing on shelf
* Butter has been even more affected than cheese.
* Inevitably this has impacted margins in our butters, spreads & oils business.
* Managing volatility is a challenge for both us and food retailers, our principal customers.
* “during course of year we have increased price we pay farmers for milk by 38% to 30 pence per litre”
* FY adjusted profit before tax (before exceptional items, amortisation of acquired intangibles and pension interest) increased by 5.0% to £60.6 million
* Proposed final dividend of 16.3 pence per share represents an increase of 0.3 pence per share Source text for Eikon: Further company coverage: