Dairy Crest has posted a 46% increase in profits to £66.7m, in full-year results revealed today.

Figures for the year to end March 31 also showed a slight drop in turnover to £1,362m from £1,349m the year before.

Dairy Crest’s chief executive Drummond Hall said that the group had continued to perform well despite a particularly challenging year in fresh milk.

Unprecedented changes in milk supply arrangements to major food retailers had been challenging, Hall said.

Although Dairy Crest lost its milk supply agreements with Tesco and Asda last year, the group kept hold of Sainsbury and Morrisons and will be supplying approximately 50% of their milk volumes by October this year.

Dairy Crest’s cheese brand Cathedral City also saw a good year with value growth for the year of 20%. The group also gained own-label cheese contracts with Asda and Morrisons.