Russian food group Wimm-Bill-Dann Foods has today (14 December) posted a 10% rise in underlying third-quarter profits thanks to buoyant dairy and baby food sales.

The company, Russia's largest dairy processor, booked underlying operating income of US$54.1m for the three months to 30 September, up from 10.7% a year earlier.

Turnover jumped 39% to $610.5 as dairy sales rose 41% and sales of baby food leapt by over 50%.

Chief executive Tony Maher said the results had been achieved in "most challenging raw material cost environment".

Maher added: "Despite a sharp rise in raw milk prices, we continued to improve our EBITDA margin to 13.5% in the third quarter of 2007 compared to 12.7% in the second quarter of 2007."

Wimm-Bill-Dann has 37 manufacturing facilities in Russia, Ukraine, Kyrgyzstan, Uzbekistan and Georgia. The sites produce brands including Domik v Derevne milk and Agusha baby food.