Arla Anticipates Potential Dip in Sales Amidst Consumer Spending Cutbacks
Source: The DairyNews
Dairy giant Arla foresees a potential decline in sales for the current year, following a flat performance in 2023, as European consumers continue to tighten their spending habits.
Although the company observes some signs of increasing demand, the combination of lower overall prices and currency challenges is expected to impact sales. Arla notes a recovery in dairy prices in the latter half of 2023, especially for premium products like Lurpak butter and Castello cheese.
CEO Peder Tuborgh sees a return to a more balanced landscape between branded and discounted items, but acknowledges the lingering effects of lower prices and currency fluctuations on the sales outlook.
The company expects sales in the range of €13.2-13.7 billion ($14.3-$14.8 billion) for the year, compared to the flat sales figure of €13.7 billion in the previous year. Despite lower volumes, sales of Lurpak butter and Castello cheese both witnessed a 3% increase in 2023.
Arla, competing with industry players such as Danone and Nestle, is owned by over 8,000 dairy farmers across several European countries.
Read also: Arla: total revenue reaching EUR 13.7 billion.
CEO Peder Tuborgh sees a return to a more balanced landscape between branded and discounted items, but acknowledges the lingering effects of lower prices and currency fluctuations on the sales outlook.
The company expects sales in the range of €13.2-13.7 billion ($14.3-$14.8 billion) for the year, compared to the flat sales figure of €13.7 billion in the previous year. Despite lower volumes, sales of Lurpak butter and Castello cheese both witnessed a 3% increase in 2023.
Arla, competing with industry players such as Danone and Nestle, is owned by over 8,000 dairy farmers across several European countries.
Read also: Arla: total revenue reaching EUR 13.7 billion.
