Dairy group Arla Foods pre-tax profit for the half-year to March 31 fell £13.5m to £10m, on sales up 2.9% at £683.2m.

Arla Foods said that the slump in profit was a result of substantial cost increases and marketing expenditure for its Cravendale brand.

Sir David Naish, chairman of Arla Foods, said: “Despite the pressures upon us, I am confident that our performance in the second-half will represent a significant improvement on the first-half and meet our expectations for the full-year.”

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