Australian dairy firm National Foods has posted an 18% rise in full-year profit, helped by its contract to supply milk to supermarket giant Woolworths.

The company reported net profit of A$60.1m (US$38.6m) for the year to 30 June, compared to $51.1m a year earlier. National Foods had forecast net profit growth of 15%, while analysts had forecast growth of 17%, reported Reuters.

Chief executive Peter Margin said National Foods’ higher-margin dairy snacks and gourmet foods business, as well as its core milk production, would help boost profits again this fiscal year.

“We believe that, based on current indications, continued double-digit earnings growth is achievable for the current financial year,” Margin was quoted by Reuters as saying.

National Foods’ total revenue rose 12% to $1.2bn, of which milk sales accounted for around 65%. The company’s share of the Australian fresh milk market rose to 43% from around 40%, compared to Dairy Farmers’ 22% market share and Parmalat’s 18%.

The company said its King Island cheese business, which it acquired 18 months ago, had swung to a profit of $5.6m.