Dairy Crest posted its preliminary results for the year to 31 March, with adjusted profit before tax up 5% to £60.6m.
Its full-year adjusted profit to March rose 5 percent but revenue fell 1 percent with margins on its butters, spreads and oil business hit by higher input costs during the period, a report released by the dairy giant said.
The maker of Cathedral City cheese said it increased the price it paid for milk over the year, but in the first nine months of the financial year cheese retail prices had fallen or remained stable.
However, it said prices had started to rise on the shelf since Christmas.
'Robust performance'
“In the first full year since the transformational sale of our dairies business, we have delivered a robust performance in a tough market,” said chief executive Mark Allen.
“Our industry leading margins are the result of our focus on driving long-term value through brand building, innovation, investment in a world class supply chain and strong cost control.
“Our key brands are performing well.”
'Nation's favourite cheese'
Allen said Cathedral City remained the nation's “favourite” cheese, and following its brand refresh at the start of the year, the good progress and momentum seen in the last six months continued into the new financial year.
“Our overall spreads market share has increased, and Frylight had another outstanding year with sales growing 19%.
“This is well ahead of the market. The ongoing investment that we are putting behind our brands gives me confidence that we can grow market share.”
