Dairy Crest said overall trading in the first quarter has been challenging, especially in its Dairies business but expectations for the full year remain unchanged.
Dairy Crest, which supplies about a third of the UK's supermarket milk, said its financial position remains in line with company expectations.
Its milk business experienced a difficult quarter, along with the rest of the sector but it said it has taken steps to restore good levels of profitability such as setting a medium term target of 3% return on sales.
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Dairy Crest, which announced plans to close two dairy farms in April following the loss of a supply contract with supermarket giant Tesco, said the closures are on schedule.
Last month Dairy Crest announced the sale of its French spreads business, St Hubert, for €430m to help pay down company debt and return focus to the UK.
Chief executive Mark Allen commented: "Our focus at the start of the year has been on doing the right things to restore our Dairies business to a satisfactory level of profitability as well as to continue to grow our brands and we are pleased with the progress we are making."
"At the same time we are taking another significant step in the evolution of Dairy Crest by following through our strategic decision to dispose of St Hubert and refocus on the UK."
Total sales of its four main UK brands: Cathedral City, Country Life, Clover and Frijj, are up 15% in the first quarter compared to the same period last year.
The group said it remains committed to making efficiency savings of £20m this year and are on track to meet this target.
CJ
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