Dairy Crest increases bad debt provision by £4m
Dairy Crest, a chilled dairy foods company in the UK, has increased its bad debt provision by £4m after its customer - Quadra Foods went into administration.
Quadra Foods purchases milk from Dairy Crest to produce its Dairystix brand - a long-life milk stick for use in tea and coffee.
Dairy Crest said that it hopes to lower the amount of bad debt by offsetting money it owned to Quadra under a milk swap arrangement.
The company has assured the shareholders that Quadra collapse would not damage the business or affect the prospects of dividend payouts. It also added that it would have no material effect on its borrowings.
Dairy Crest Group, based in Esher, UK, processes and sells fresh milk and branded dairy products in the UK and rest of Europe. It has annual sales of £1.6bn.
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