Branded sales growth
Date 02.19.2020 | Category: News
Last year Arla Foods recorded sales of € 10.5 billion (2018: € 10.4 billion). The branded goods business grew by 5.1% (in 2018 the increase was 3.1%) to € 3.033 billion. Source: Arla FoodsAuthor: Sossna
Sales were driven by product innovations in the organic sector and in the Lactofree range, products for flexitarians and Skyr's rising sales in the European market. The Lurpak brand achieved a volume of €588 million (2018: €561 million), with volume sales exceeding 100,000 tonnes. The Puk brand, popular in the MENA region, contributed €363 million to earnings (2018: €352 million). Business with Castello cheeses stagnated at €179 million.
Arla generated 60% of its business in Europe (€ 6.353 billion), with the core brands growing by 2.9% and all markets contributing to growth. In the UK, the Arla brands achieved an 8.8% increase. Overall, revenues in Europe fell by € 154 million as a result of the discontinuation of unprofitable activities and exchange rates.
International activities (17% of total business) grew at a double-digit rate by € 226 million to € 1.802 billion, with the brands grew by 10.3% in all regions except North America.
Arla Foods Ingredients (AFI) increased sales by € 58 million to € 710 million.
The milk price is quoted at 36.6 cents, which is 0.2 cents above the previous year.
The Calcium efficiency enhancement programme went better than expected in 2019, generating savings of € 110 million, the plan had envisaged € 75 to 100 million. Since the programme was launched in 2018, savings of € 218 million have been achieved, meaning that Arla Foods has now already achieved more than half of its target of € 400 million.
In 2020, Arla Foods plans to invest €619 million, including expansion of drying at the Pronsfeld site, increased mozzarella capacity at the Branderup plant and capacity expansion at AFI . The factory taken over from Mondelez in Bahrain will also be expanded.
Sales of € 10.4 to 10.8 billion are expected for 2020.