Farmer-owned dairy cooperative Arla Foods UK has seen its revenue increase by 2.3 percent in the first half of 2018.
A 6.7% volume driven branded growth contributed to an overall net revenue growth of 2.3 per cent, comparative to the first half of 2017, increasing revenue to £961m (€1.093bn).
The 6.7% branded sales volume for Arla was supported by the core Arla brand at 9.3% growth, as well as Lurpakat 2.2% growth and Castello at 8.8% growth in the UK.
Within the Arla portfolio, Arla’s foodservice range Arla Pro grew by 52.8% whilst sales of B.O.B (Best of Both) grew at 38.1%.
At a global level, total Arla Group revenue grew by 2.2% to EUR 5.1 billion, supported by higher strategic branded sales volumes.
Arla Foods UK Managing Director, Ash Amirahmadi said: “Year on year, Arla’s portfolio continues to lead the way in driving growth across the UK dairy sector.
“Our decision to invest to build capability in the growing channels of foodservice, online and convenience is paying off and will continue to do so as we further develop the UK business.”
Supplementary payment
Each year, Arla targets an annual net profit share in the range of 2.8 to 3.2 per cent of revenue. This allows the company to balance its retained capital for future investments and provide a supplementary payment to farmer owners.
In the first half year of 2018, Arla delivered a net profit share of 2.2 per cent, up from last half year’s profit share of 2.1 per cent.
The company expects to reach its full year net profit share to be within the 2.8 to 3.2 per cent target range.
Arla’s revenue outlook for the full year 2018 is expected to be EUR 10.0-10.5 billion.
Net profit share for 2018 is expected in the targeted 2.8-3.2 range.
