August 11, 2005

Dairy firm Arla's profits could drop

UK's biggest milk supplier Arla Foods said that its profits could be affected by higher utility costs, it announced on Aug 11.

Higher oil and utility prices are cited as possible factors resulting in lower than expected profits. Analysts had originally predicted Arla's year-to-September profits at GBP50 million (US$90.18 million), before tax, amortisation and exceptional items.

Arla added the second phase of the EU agricultural reform have not affect milk prices yet.