Dairy processor Dairy Crest group, whose brands include Cathedral City, Clover and Frijj milkshake, has reported strong first-half results, which its attributes to higher selling prices offsetting a rise in input costs.

The improvements on last year for the processor, according to Dairy Crest chief executive Mark Allen, are also due to increased efficiency and a number of property disposals.

Allen said, "Looking forward, the consumer environment is challenging and increasingly difficult to predict. Despite this, we remain confident that we will deliver profits for the year in line with our expectations."

There has been a recent drop in profits in Dairy Crest’s dairies division, although Allen assured that measures are being taken to rectify matters. He also said the group’s brands have performed well; the company's key brands have grown by around 5 per cent and new products have been launched. Allen concluded, “In the current climate, this is a good result.”

For Dairy Crest, April-September pretax profit was £39.2 million, compared with £36.1m last year. Revenue was up 2 percent at 796.2 million pounds. Dairy Crest shares, which have lost 20 percent of their value since the start of 2011, closed at 336 pence on Wednesday, valuing the company at about £450 million.