Graham's Dairy made a profit before tax of £2.2m in the year ending March 2019 according to the milk processor's full year annual results.
The Scottish dairy firm, which sources from 110 farmers, reported a 4.7 percent rise in turnover up £4.9m in 2018 to £109.0m this year.
Graham's also reported a 'strong' earnings before interest, tax, depreciation and amortisation (EBITDA) performance of just over £4.6m.
The business said a 'clear focus' on family brand values, development of a brand message as well as business innovation helped create the strong results.
Last year saw the launch of Graham’s Skyr, a Scandinavian-style cultured dairy product, which exceeded sales expectations.
To date, the product is Graham’s best performing new product launch.
Robert Graham, managing director at Graham’s Dairy, said: “It is very important that we continue to grow margins in order to be able to continue to invest into the business and keep up this pace of innovation.
“New product development is a key priority for us to enable us to meet developing consumer trends for great tasting, naturally functional dairy products made with fresh Scottish milk.
“This clear focus has led to us investing £5.6m in the business this year alone.”
Earlier this year the dairy processor announced it had entered a five-year partnership with retailer Aldi.