Dairy Crest, the maker of Cathedral City cheese and Country Life butter, has reported that its pre-tax profit jumped 23 per cent to £45.4 million in the year to 31 March.
However Sales dropped 6 per cent to £422.3 million while its four leading brands saw revenue drop 2.3 per cent.
Sales of Clover and Country Life were down 14.9 per cent and 6.2 per cent; sales of Cathedral City grew by 0.8 per cent and Frylight were up 27.9 per cent.
Speaking on the year's results, Mark Allen, CEO of Dairy Crest, said: “Although we expect food price deflation to persist in the short term, the business is well positioned to deliver profitable and sustainable growth.
"We are making progress with all of our four key brands and the continued investment we are putting behind them this year gives me confidence that we can continue to grow their market share.”
The other focus for the 2016/17 year will be on accelerating sales of "demineralised whey and GOS", the new infant formula ingredients and continuing to explore further "applications for GOS", he said.
"Future cash generation will improve as the sale of our Dairies business and completion of the investment at Davidstow removes a significant drain on cash.”
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