ROBERT Wiseman, the Scottish dairy company, said it expected to post better-than-expected results for the first-half of the year as sales and volumes had been running "slightly above forecast" over the past six months.
But it warned that rising costs for energy and plastic for its bottles remained a concern that could potentially erode the recovery in margins enjoyed of late.
Chairman Alan Wiseman said the group - which has operations in East Kilbride, Aberdeen
and Glasgow, as well as Manchester and Droitwich Spa - said in a trading update that it had successfully renewed key milk supply contracts with supermarket giants Sainsbury and Somerfield. He said this would give the firm, which was founded back in 1947, "a further period of stability that is a major benefit for us in terms of planning our future capacities".
Wiseman also said that it was seeing sales of organic milk continuing to grow. "Our own track record in dealing with farmers will encourage organic suppliers to work with us as we seek to develop this market," Mr Wiseman said.
Earlier this week, Wiseman signed an agreement to pack all of its Rachel's brand organic milk (on behalf of Horizon Organic Dairy) from November 2006.
Elsewhere, Wiseman said the ground work on its £46m state-of-the-art diary at Bridgewater, in the south west, was "well under way", with the plant expected to be operational sometime late next year.
