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Yoplait sale cuts debt at Dairy Crest
Simon English27.03.09
Dairy Crest has sold its 49% stake in the UK arm of yoghurt group Yoplait, booking a £50 million profit it will use to pay down sizeable debts.
The milk and butter outfit has been slowly recovering from a profit warning last November. It today said its products are doing well in a tough market.
Ad campaigns, including one for Country Life featuring the Sex Pistols' John Lydon, have pushed up sales by a third.
The move to offload a 49% stake in Yoplait Dairy Crest for £63.5 million gives it more headroom against banking covenants, and allows it to cut a £435 million debt pile.
