Arla Foods hit by price delay

Arla Foods today warned that delays increasing the price paid by supermarkets for its products would hit profits in the first half of the year.

The UK’s largest supplier of butter and milk upped the selling price of its goods to counter rises in packaging, utility and energy bills.

But this happened more slowly than hoped, meaning profits in the six months to the end of March would be less than expected Leeds-based Arla said.

Earnings for the following six months would be in line with expectations, it added in a statement ahead of the company’s annual meeting.