Robert Wiseman Dairies expects annual turnover and underlying profits to meet its previous expectations, the UK milk processor confirmed today (31 March) – but the company’s shares still fell.

The company, which in September announced a profit warning for the full year, said it “anticipates turnover and underlying profits will be in line with previous expectations”.

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In a trading update before Wiseman reports its annual results in May, the company provided some information on its costs.

Rising bulk cream prices had helped the business earlier in Wiseman’s financial year. However, the company said in January that it has seen cream prices “absorbed” by increased costs, a rise in the amount it pays for raw milk and “margin pressures in an intensely competitive market”, it said. Wiseman said today that input costs had continued to rise, notably for oil and plastics

The company, which supplies the likes of Tesco, Sainsbury’s and The Co-operative Group, has started talks with its customers to recover its milk and oil-related costs.

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However, Wiseman added: “Since instigating this process there have been further significant increases in diesel and plastic costs that had not been factored into the price increases sought from customers.

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“It is unclear whether these most recent increases in costs are reflective of short-term volatility or will become established for the longer-term and consequently it is too early to assess the impact this might have on the financial results for the forthcoming year.”

Shares in Wiseman were down 2.1% at 345.25p at 10:52 BST.

Wiseman’s results for the year to 2 April will be announced on 17 May.