Arla Foods delivered double-digit growth in both revenue and earnings in 2011. This is despite the fact that 80 per cent of Arla’s business is based in Europe where the 2011 debt crisis caused consumers to be cautious.
The keyword for Arla’s first half-year 2011 is growth. Revenue rose by 12 per cent, among other things due to the merger with Hansa-Milch and price increases in the market. Arla also delivered a large increase in the milk price to the cooperative members in Sweden, Denmark and Germany.
In 2010 Arla Foods reported an increase in turnover of three billion DKK and a significant boost in earnings to the company’s cooperative owners.
The global recession has impacted on the entire dairy industry, however, Arla Foods amba’s successful cost reduction programme and a rise in the price for bulk industrial products at the latter end of the year resulted in the company’s 2009 profit totalling DKK 971 million, DKK 71 million higher than budget, exceeding the expectations of the business.
In 2009, the economic situation forced Arla Foods to make cuts across the business. A new and increased budget for 2010 focuses on marketing, an increase in capacity, as well as efficiency measures.
A difficult six months but 2009 full year forecast achievable.
Arla's profits for 2008 total DKK 556 million, DKK 350 million below budget. Although the milk price (including the supplementary payment and consolidation to member’s capital account) for the cooperative milk producers in 2008 was the highest ever, amounting to DKK 2.5 billion more than in 2007, the result is not satisfactory, according to Peder Tuborgh, CEO of Arla Foods.
An ambitious and challenging global strategy has today (30 October) been announced by Arla Foods amba in which the UK will continue to play a fundamental role.
UK business makes multi-million pound investment in its flagship Stourton dairy at Leeds and further strengthens its commitment to the environment through on-farm heat recovery and solar panel trial.
Arla Foods amba has purchased the remaining shares of the UK subsidiary, Arla Foods UK plc, which has subsequently been delisted from the London Stock Exchange. As of today, the UK subsidiary is fully owned by Arla Foods amba.
Recommended Acquisition of Arla Foods UK plc ("Arla Foods UK") by Arla Foods UK Holding Limited ("Arla Holding") (a wholly owned indirect subsidiary of Arla Foods amba ("Arla amba"))