Arla Foods’ UK operations has doubled its profit forecast for next year to £55.7m, in expectation of exceeding last year’s record earnings.

The Scandinavian company said profits for Arla Foods UK could be up by £27.8m over previous estimates this financial year.

Peder Tuborgh, Arla Foods chief executive, said scepticism around the UK business had now disappeared.

“The money is there, and the business is developing in a healthy direction," he said.

Arla said the upturn in Arla Foods UK’s fortunes was due to a number of factors, including increased prices because of improved UK dairy market conditions and improved operating efficiencies.