Arla Foods has recorded strong full-year financial results, as the dairy co-operative recorded an 8.1% rise in revenue to €10.3 billion ($12.7 billion) due to higher sales prices and increased global demand for dairy products.
This revenue rise allowed Arla Foods to deliver a 24.7% increase in pre-paid milk prices to its farmer-owners.
The brand registered strong global sales across its product range, as Arla branded product sales grew 10.1%, while Lurpak sales grew 8.3%, Puck sales grew 6.8% and Castello sales grew 3.8%.
Overall international revenue rose 13.2%, while Arla Foods Ingredients delivered revenue growth of 19.6%.
However, Arla Foods’ year-on-year net profit fell 16% to €299 million ($368 million) from the €356 million ($438 million) figure recorded in 2016 despite the rises in sales.
Arla Foods’ CEO Peder Tuborgh, says: “In 2017, we delivered a strong performance built on the good balance of brands, categories, and geographies that we have in our business to drive growth.
“We welcome an even more consumer-driven dairy market, where inclusiveness with the whole value chain and holistic responsibility will be more important than ever.
“As a farmer-owned dairy company we must meet these demands by being transparent and using the tools we have in our quality assurance programme Arlagården, to bring consumers and customers closer to Arla.”
“Most importantly, this enabled us to pay out significantly higher milk prices to our farmer-owners and utilize our balance sheet to enable the substantial capital investments we are making in 2018.”
Arla Foods’ CFO Natalie Knight, added: “This is the single biggest organic revenue increase inside one year in company history when you don’t count mergers.
“It was driven by our continued drive into international markets as well as our focus on growing and developing our strategic brands on all markets.”
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