Arla Foods has marked its 25th anniversary with resilient half-year results, posting €7.5 billion in revenue across Europe and a 9% boost in UK earnings despite volatile global markets.
The co-op posted a net profit of €158 million and revenue of €7.5 billion in the first six months of the year, achieving a performance price of 57.5 euro cents per kilogram of milk.
In recognition of this, the Board has approved a supplementary payment of 1 euro cent per kilogram of milk for farmer-owners, based on half-year volumes.
In the UK, net revenue grew 9% (€130m/£108m) during the first half, although branded volume-driven sales fell 4.7%, largely due to butter.
By contrast, the foodservice division reported 15% growth (€29m/£24m) with branded volumes up 7.6%.
Bas Padberg, managing director of Arla Foods UK, said: “We knew going into the first half of this year that market conditions would be more difficult to navigate and therefore have an impact on our business.
"We’ve seen some of the highest commodity prices so far this year, which has increased the value of dairy. As a cooperative, we have to ensure our farmers get the best possible price for their milk whilst keeping nutritious dairy accessible to shoppers.”
Arla also underlined its commitment to British dairy with a £90m investment at its Lockerbie site, creating a UHT 'centre of excellence'.
The cooperative continues to push sustainability initiatives through the Dairy Roadmap and FarmAhead™ partnerships with UK retailers and foodservice providers.
“The first half of 2025 marked a number of milestone initiatives that will ensure we can secure the future for British dairy and return the highest value for our farmers’ milk,” said Mr Padberg.
“We will continue to face headwinds … but as a cooperative, we are resilient and committed to providing the very best products produced by farmers who work tirelessly to feed a nation.”
The half-year results come against a backdrop of geopolitical uncertainty and elevated dairy commodity prices, which weighed on branded sales volumes, down 1.5% compared with the same period last year.
Arla's CFO, Torben Dahl Nyholm said: “Although we saw a slight decline in branded sales volumes in the first half of the year, we expect the situation to improve as we move into the second half.
"With continued focus and the strength of our brands, we are well positioned to respond to changing market conditions, and we anticipate that branded growth will be close to neutral for the full year."
