Australian dairy firm Warrnambool Cheese and Butter Factory saw its annual profits more than double due to record prices, the company said today (30 October).

Warrnambool posted a 154.6% jump in net profit to A$24.5m (US$16.4m) compared with the previous 12 months as a result of record prices across its entire product range, production capability and flexibility.

Sales grew by 41.3% to A$525.3m for the year to 30 June.

"Operationally, the business is well placed to build on what was accomplished in 2008, however the turmoil in world financial markets will negatively impact dairy sales in the short to medium term," said managing director Neil Kearney.

"The strategic initiatives that are underway and are on track are critical to secure the long-term earnings growth of the company."