Dairy Crest today said more price increases were on the way as it battles to offset soaring costs.
The Cathedral City and Clover group said it would hike prices "as necessary" to combat rising fuel, energy and commodity cost pressures.
Dairy Crest has passed on many of its higher overheads to consumers after milk costs rose by a third on last year.
It has been able to make "good progress" over the past 12 months as a result and also thanks to a renewed focus on its flagship cheese and spread brands.
Dairy Crest confirmed it hoped to match its expectations for full year results, although it will take an "exceptional" £4.5 million hit from one unfavourable supply contract.
Dairy Crest's results to the end of March will also be impacted by an expected £9.4 million fine imposed by the Office of Fair Trading after the group was found provisionally guilty of colluding to fix dairy prices in 2002 and 2003.
Dairy Crest is among a number of dairies and supermarkets that have admitted their part in the affair and are set to pay reduced fines as a result.
The group remained upbeat on its prospects for the year ahead in the face of inflation. Mark Allen, chief executive of Dairy Crest, said: "The dairy industry has experienced well-documented volatility over the past year.
"The market continues to be challenging particularly in respect of input cost inflation, but we are optimistic that our business is well placed to deal with this."
But shares fell 3% today, with analysts saying the OFT ruling and news of the supply contract hit had taken the shine off its full-year trading update.
Panmure Gordon questioned the group's decision to class the £4.5 million supply contract charge as an exceptional. The group said it was making losses on the contract as a result of raw milk cost increases and weak cream prices.
Panmure said there would likely be a debate over whether multi-year losses from the contract "should really be stripped out as exceptional".
Dairy Crest recently posted a 13% third quarter sales hike in its dairies division, while it reported 17% underlying sales growth in its food arm. Its push to promote top brands has helped see Cathedral City cheddar achieve double-digit growth and is now worth around £160 million in retail sales value, up from £124 million a year ago, said the firm