Arla Foods Projects $25 Billion Revenue for 2024 Amid Rising Milk Prices and Branded Growth

For the first half of 2024, Arla Foods reported revenues of nearly $12 billion, alongside a net profit of $300 million. The co-op collected 7 billion kg of milk during this period, allowing it to increase milk prices by nearly 10c/kg compared to the latter half of 2023. Additionally, a half-year supplementary payment of 3.5c/kg was made to farmer-owners, reflecting the company's robust financial performance.

Arla's CEO, Peder Tubough, highlighted the company’s success in maintaining the positive momentum from 2023 into 2024. The company's rising milk prices and supplementary payments were primarily driven by increased commodity prices and Arla's "Fund Our Future" transformation and efficiency program. This performance was further bolstered by a return to branded volume growth, with Arla’s strategic brands, including Lurpak, Puck, and Arla, collectively experiencing a 4.1% revenue growth in the first half of 2024.

The growth in branded products was particularly strong, with Lurpak achieving a 7.9% increase in volumes, Puck growing by 4.4%, and the Arla brand seeing a 3.8% rise in the first half of 2024.

“We are very pleased to deliver a competitive milk price,” said Tubough, adding that the return to branded growth was greater than anticipated, underscoring the strength of Arla's brands and the company’s efforts to regain market share.