Dairy Crest Group, the maker of Cathedral City cheese, Country Life spread and Frubes yoghurt, has reported strong sales despite handing "unprecedented" rising costs over to its customers.

Dairy Crest Group, the UK-based company responsible for Cathedral City cheese, expects annual profit to be in line with expectations, due to solid sales of its cheese, yoghurt and butter brands and cost cutting initiatives in its milk division.

Dairy Crest Group has appointed Martin Oakes as executive managing director of its dairies unit with effect from February 1, 2007. Mr Oakes, 46, joins the company after spending six years with UK retailer Somerfield Stores, where he was group logistics and IT director.