Multinational dairy cooperative Arla Foods has announced a significant revenue increase, reaching €13.8 billion in 2024, reflecting a growth of €401 million compared to the previous year. This marks one of the highest revenue performances in the company’s history, driven by robust market demand and strategic cost management.
Strong Financial Performance and Farmer Dividends
Arla’s performance price surged to 50.9 euro cents per kilogram, making it the second-highest in the cooperative’s history. This milestone underscores Arla’s commitment to efficiency and sustainability, ensuring farmer-owners benefit from the cooperative’s success.
The cooperative has proposed a record-breaking supplementary payment of 2.2 euro cents per kilogram of milk delivered, the highest-ever dividend paid to its farmer-owners.
Jan Toft Nørgaard, Chair of Arla Foods, stated:
“Arla’s strong results in 2024 highlight the dedication of our farmer-owners and employees. Our competitive milk price and financial performance reflect our ability to navigate a complex market landscape and deliver value to stakeholders.”
European Market Performance
Arla’s European segment posted a 1.0% revenue growth, totaling €8.1 billion in 2024. The company attributes this success to easing inflation, increasing wages, and a 4.1% branded volume growth.
Key highlights:
- The Netherlands/Belgium and France reported 7.4% branded volume growth.
- The UK saw 7.6% growth in branded volumes despite a slight revenue dip of 0.2% to €3.1 billion.
- Arla Sweden grew 3.6% to €1.6 billion, while Denmark declined by 1.3% to €1.2 billion despite stable branded sales.
Top-performing brands in 2024:
- Arla Protein: 32.3% growth
- Arla Pro: 8.7% growth
- Lurpak: 6.7% growth
International Business and Global Market Trends
Despite revenue declining 1.5% to €2.4 billion due to unfavorable currency fluctuations in Nigeria and Bangladesh, Arla’s international segment still reported 2.9% branded volume growth, demonstrating strong underlying demand.
Arla Foods Ingredients (AFI), a key growth driver, saw revenue rise 5.4% to €1 billion, fueled by rising demand for specialized dairy proteins and a 2.5% growth in value-added segments.
The Global Industry Sales segment experienced a 0.1% revenue decline, attributed to higher commodity prices and constrained dairy supply. However, butter and yellow cheese prices soared by 40%, driving strong financial performance.
Outlook for 2025: Sustained Growth Amid Global Challenges
Looking ahead to 2025, Arla anticipates continued geopolitical uncertainties and fluctuating dairy demand due to higher consumer prices and economic volatility.
Key forecasts for 2025:
- Revenue projected between €14.5-15.3 billion.
- Profit share expected to remain within the 2.8%-3.2% target.
- Branded volume growth may face pressure due to pricing fluctuations and market uncertainty.
Peder Tuborgh, CEO of Arla Foods, commented:
“Our commitment to resilience and adaptability remains unwavering. By harnessing the strength of our cooperative model and focusing on sustainable practices, we are well-positioned to navigate uncertainties and continue delivering value to our farmer-owners and customers.”
Conclusion
With a record-breaking financial performance, strategic brand growth, and a commitment to sustainable dairy production, Arla Foods is poised to maintain its leadership in the global dairy market. As it navigates economic and geopolitical challenges in 2025, the cooperative remains focused on innovation, sustainability, and farmer prosperity.
