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Arla's robust first half of 2024 is paving the way for enhanced sustainability efforts
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Thursday, 05 September, 2024, 16 : 00 PM [IST]
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Denmark
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Arla Foods' robust half-year performance in 2024, continues the positive momentum from late 2023, enabling a 5 EUR-cent/kg increase in milk prices compared to the second half of 2023, a half-year supplementary payment to farmer owners of 1 EUR-cent/kg milk and advancing sustainability initiatives through FarmAhead Technology.
The company has delivered a robust half-year performance in 2024, where the positive trajectory from the later part of 2023, has continued. The performance has made it possible for Arla to increase the milk price by 5 EUR-cent/kg milk compared to the second half of 2023, and as expected, it is also possible to pay a half-year supplementary payment to farmer owners of 1 EUR-cent/kg milk based on the half-year volumes.
Peder Tuborgh, CEO, Arla Foods, said, “We are satisfied that the momentum created by our farmer owners and employees in 2023 has continued into 2024, and today Arla is able to announce a robust half year result with a competitive milk price that paves the way for enhanced sustainability efforts going forward.”
The rising milk price and the half-year supplementary payments are mainly driven by rising commodity prices, Arla’s Fund Our Future transformation & efficiency programme and a return to branded volume growth.
Arla’s strategic brands had a volume driven revenue growth of 4.1% in the first half of 2024 compared to a decrease of 6.0% the first half of 2023. The growth was spearheaded by the Lurpak, Puck and Arla brands which respectively grew volumes by 7.9%, 4.4% and 3.8% in the first half of 2024.
The performance price for the first six months of 2024 was 47.5 EUR-cent/kg and the total Arla Group revenue ended at EUR 6.6 billion. In the first half of 2024, Arla achieved a net profit of EUR 167 million.
Torben Dahl Nyholm, CFO, Arla Foods, said, “We are very pleased to deliver a competitive milk price. At the same time, the return to branded growth happened with a higher magnitude than expected due to the strength of our brands and successful efforts to regain growth, so we are on a positive trajectory.”
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