SHANGHAI-BASED Bright Dairy & Food Company more than doubled its first-quarter net profit because of compensation from Groupe Danone SA after ending their 15-year partnership.

Net income of the nation's third-biggest dairy group rose 175 percent to 115 million yuan (US$16.6 million) from the previous year, according to its statement to the Shanghai Stock Exchange yesterday.

However, Bright Dairy admitted a decline in operating profits due to soaring raw material costs, along with other dairy companies.

Operating profit declined 18 million yuan in the quarter, compared to 60 million yuan in the same period last year, the statement added.

Bright Dairy said its first-quarter sales revenue remained nearly unchanged at 1.87 billion yuan, while operating costs increased to 1.33 billion yuan from 1.26 billion yuan for last year .

Bright Dairy shares rose 6.78 percent, or 0.6 yuan to 9.45 yuan yesterday.

With government approval, the company has increased the price of its pure milk products by about 14 percent since April, aiming to offset production costs as the price of raw milk rises.

Bright Dairy has continued its expansion nationwide after Groupe Danone SA, the world's largest yogurt maker, sold its 20-percent stake in the company for 934 million yuan last October.

Bright Dairy aims for sales revenue of 7.7 billion yuan and profit of 162 million yuan this year. It plans to invest 490 million yuan this year to build factories.