Arla Foods UK, the UK arm of Denmark-based dairy products firm Arla, has said its profit expectations for the year remain as outlined previously.

In a trading update for the 12 months to 30 September, the company said its brands continue to perform well, with Lurpak continuing to grow strongly. Anchor Lighter Spreadable has been gaining market share after its successful launch. The second phase of Arla’s Stourton dairy investment has recently been completed giving the company additional capacity to meet the strong demand for Cravendale branded milk.

“Our leadership in the supermarket milk and cream business has continued and we have increased volumes in a continuing competitive market. As we said in August margins have been adversely impacted by higher oil and utility prices where previous price increases have effectively been negated. We have put in place measures to reduce the impact of these cost pressures. Our relationship with the Arla Foods Milk Partnership has been further enhanced by the growth in the proportion of the milk they are able to supply as their recruitment continues to gather pace,” the company said.

Preliminary results for the year to 30 September 2005 will be announced on 30 November.