Arla Foods Achieves Record Financial Performance Amid Dairy Market Volatility
Arla Foods has posted its strongest financial results to date, achieving a competitive performance price of 56.4 eurocent per kg of milk in 2025. The cooperative's board has proposed a supplementary payment of 2.2 eurocent per kg of milk delivered. Group revenue reached a record EUR 15.1 billion, driven by the highest-ever milk intake of 14.3 billion kg and favorable commodity prices in the year's first half.
Chief Executive Peder Tuborgh described the year as 'historic,' noting the strengthening of Arla's market position and significant steps towards sustainability. The results follow a year characterized by sharp swings in European dairy markets, with early strong demand and supply balance shifting to increased milk production in the latter half due to favorable weather and strong feed harvests.
Milk supply saw significant increases in key markets for Arla, rising by 7.7% in the UK and 3.6% in Denmark compared to 2024. This surge in production led to a market correction, putting pressure on milk values globally. Arla's diversified business model, including Arla Foods Ingredients, which saw revenue growth of 43.1% to EUR 1.452 billion, helped cushion the impact of the downturn.
The cooperative also achieved efficiency gains of EUR 158 million, supporting stability during the market correction. Major investments included EUR 731 million committed towards projects like the UHT Centre of Excellence in Scotland and expansion of the Holstebro Dairy in Denmark.
Despite softer branded volumes, Arla recorded a net revenue increase of 5% in the UK, amounting to EUR 152 million. The cooperative also made advancements in sustainability, reducing Scope 1 and 2 emissions by 5.6 percentage points.
Looking ahead to 2026, Arla forecasts group revenue between EUR 13.3 billion and EUR 14.1 billion, with net profit expected to stay within the 2.8% to 3.2% target range. Tuborgh stated that Arla is fully prepared for the coming market conditions.
