Cork-based Carbery Milk Products has reported a 5 per cent increase in 1998 pre-tax profits to £5.18 million (€6.58 million) with increased sales of its Dubliner cheese contributing to the rise.

The figures were also helped by a more favourable currency which helped offset a weaker cheese market in Britain, Carbery said. The company's ingredients division also turned in a strong performance, helping to bolster the overall figures despite the higher milk prices paid to farmers last year.

The group said turnover rose by 4.9 per cent to £95.5 million, pushing operating margins up slightly to 5.3 per cent from 5.2 per cent in 1997.

Carbery, which acquired a majority shareholding in the British flavour manufacturing company, Synergy Flavours, late last year is also associated with Roaring Water Bay Spirits, which introduced Boru vodka in the Irish market last October. The vodka is produced using a grain spirit distilled by Carbery and product introductions in Northern Ireland, Britain and the US are planned for this year.