SHARES IN Arla, Britain’s biggest milk processor, fell 8% on Thurs (Aug 11) following an announcement to the stock exchange that higher oil prices would impact on this year’s profits.
In its statement Arla said: “Continued exceptional inflationary pressures resulting from higher oil prices are adversely impacting our margins. Market recovery of cost increases, particularly in the middle ground, has been difficult in the short term.”
Arla said the higher costs had impacted across all sectors across its business, from the cost of diesel needed to transport milk to higher utility bills and increases in the costs of plastic for packaging.
The statement concluded that Arla anticipated these pressures to continue in to next year, however, it was putting in place plans to mitigate them.