Arla Foods Projects a Decline in Volume Metrics for 2025

Arla Foods anticipates a downturn in a pivotal volume metric for the year 2025, following a successful year marked by growth. The dairy giant recorded a rise in revenues and profits in 2024, boasting strategic branded volume-driven revenue growth of 3.7% for the year.

In 2024, Arla's revenues soared to €13.8 billion ($14.39 billion), up from €13.7 billion the previous year. The cooperative's net profit also grew, reaching €401 million from €380 million in 2023.

Looking ahead to 2025, Arla projects its revenue to be between €14.5 billion and €15.3 billion, propelled by sustained high dairy prices. Despite this, the owners of the Lurpak brand foresee these prices, coupled with consumer uncertainty, putting pressure on its branded volume-driven revenue growth.

The company anticipates a decline in this crucial metric by 1-2%, attributing it to the balance of supply and demand dynamics throughout the year. Arla is targeting a profit share between 2.8% and 3.2%, after achieving a 2.9% profit share in 2024.

Arla also forecasts achieving efficiencies valued between €90 million and €110 million in 2025, following the €131 million in 2024. When queried by Just Drinks about potential job cuts or factory closures, an Arla spokesperson denied any such plans, emphasizing that efficiencies do not necessarily equate to job reductions or closures.

The company had earlier, in July, announced its decision to cease operations at a UK creamery after failing to find a buyer. The previous month, Arla had declared plans to increase investment in the UK, raising its 2024 total expenditure in the region to over £300 million ($377.6 million).

Moreover, in October, Arla expressed interest in expanding its footprint in Egypt by making a non-binding offer for a majority stake in the Egyptian company, Arabian Food Industries, known as Domty.