Dairy Crest said it is on track to meet profit forecasts

Dairy Crest said it is on track to meet profit forecasts

Dairy Crest, the UK's largest dairy processor, has moved to allay fears about its milk business after a profit warning from rival Robert Wiseman Dairies hit both companies' shares.

In a surprise statement to the London stock exchange, Dairy Crest admitted the UK's liquid milk market was "very competitive" but said it was confident profits remained in line with targets.

"Our broad customer and product base and clear improvements in our cost base, quality and service make us confident that we can deliver profits this year in line with our expectations and provide a sound base going forward," Dairy Crest said.

Shares in Dairy Crest, which saw its stock fall by more than 10% at one stage today (16 September), were down 5.8% at 354.2p at 14:58 BST this afternoon.

This morning, shares in Robert Wiseman Dairies tumbled by almost a third after the company said "intense" competition would hit its annual profits. Shares in the UK milk firm were down 28.2% at 348.5p at 15:00 BST.