Turnover at Graham’s the Family Dairy increased by 20% after its acquisition of Glenfield Dairy in Fife.
Sales at the Stirlingshire business grew from £83.7 million to £100.5m for the year ending March 2017.
The revenue growth reflects the purchase of the Cowdenbeath dairy from First Milk which was agreed in November 2015 and completed last year.
The family business recorded a 9% drop in profits to £1.3m which the firm said reflected the “challenges faced across the dairy industry”.
During the year there was a £1.4m investment in new plant and machinery and the company also launched several new products.
Managing director Robert Graham said: “We continue to grow our business partnerships with major retailers and now over half the Scottish population buy Graham’s products.
“Going forward, we will constantly innovate to expand our award-winning product range both within the UK and beyond.
“Despite the challenging backdrop of balancing supply and demand of raw milk prices, we have made significant progress throughout the year in relation to key elements of our strategy.
“We are well positioned to take advantage of upcoming opportunities in the market place whilst at the same time looking to improve efficiency and profitability.”
The firm is hoping to build a £20m national dairy centre in Stirling which would focus on R&D and innovation but the company said the development would need support from the Scottish Government.