Arla tells investors profits are on track

Arla Foods UK has told investors that it is still on track to reach revised profit targets for the year.

The milk processor hurried out a profit warning in August, which led analysts to slash forecasts from £50m to £45m, and knocked nearly 10% off the share price.

In a trading update before entering the closed period prior to publishing its interim results, the company said its brands had performed well.

It singled out Anchor Spreadable and Lurpak where growth had been particularly strong, contributing to an overall increase in market share.

Arla’s Stourton dairy has recently been extended to allow production of its long-life Cravendale milk brand to be ramped up.

Despite having recently pushed through a 0.35p/litre milk price cut in the teeth of opposition from suppliers, Arla claimed it had enhanced its relationship with the Milk Partnership.

It cited the growth in the proportion of the milk they are able to supply to Arla Foods.