Arla delivers turn-around after tough start to 2018

Date 02.20.2019 | Category: News
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Arla 2018 IDM Feb19

The transformation programme Calcium delivered cost-savings far beyond targets for the year and thanks to a historically strong balance sheet the Board of Directors has proposed to pay out the entire net profit for 2018 to farmer owners.


Group revenue increased to EUR 10.4 billion (compared to EUR 10.3 billion in 2017 and EUR 9.6 billion in 2016) driven mainly by strong growth in branded sales volumes of 3.1 per cent with a wider range of dairy products to meet consumer needs. Thereby Arla grew its share of branded business to 45,2 per cent, surpassing the long-term target in the Good Growth Strategy 2020 of 45 per cent.


Arla’s performance price – which measures the value Arla creates per kilogram of owner milk – rebounded after the first quarter and improved throughout the year, ending at a full-year average of 36.4 for 2018.


By the end of 2018 the negative impact of the summer’s drought in Europe was registered as expected growth in milk volumes stalled in Europe and Arla’s farmer owners faced increasing feed prices. Arla’s historically strong balance sheet has allowed the Board of Directors to propose an extraordinary one-time pay-out of the full net profit for 2018 of EUR 290 million to farmer owners. This will be paid out as 2.3 eurocent per kilogram of milk each farmer owner has delivered to the cooperative.


Says Arla Foods Chairman Jan Toft Nørgaard: “As a farmer-owned dairy company we care deeply about the livelihood of our farmers and we see how many of our colleagues have been affected by the drought last summer. We have this exceptional opportunity to help them without putting our company Arla at risk and I am proud that we have proposed to do so.” For more visit


Source: Arla
Author: COX
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