DAVY VIEW

As expected, Norish has recorded a strong profit out-turn in the first half, driven by its Cold Store division. Favourable business mix, improved stock turn and a continued focus on cost control contributed to a 370bps expansion in Cold Store operating margin. The A2-protein milk supply initiative remains in train. The outlook statement strikes a positive tone ahead of the seasonally important second half. We anticipate modest upward revision to our FY operating profit forecasts.