UK cheese firm Lactalis McLelland has booked a fall in annual profits after losses at subsidiary Caledonian Cheese Company.

The UK arm of French dairy giant Lactalis posted operating profit of GBP5.89m (US$8.91m) for 2009, down from GBP5.93m a year earlier.

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“The group’s profit was impacted by losses arising in The Caledonian Cheese Company, caused by increases in milk prices that started in 2008 that were not fully matched by price increases,” Lactalis McLelland said in a filing with Companies House.

Sales, however, rose 3% to GBP171.4m amid “good growth” from the company’s Seriously Strong, Galbani and President brands.

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