Farmers Guardian
Topics
How to spot BSE and what farmers can do to prevent it

How to spot BSE and what farmers can do to prevent it

DataHub

DataHub

Dairy Farmer Magazine

Dairy Farmer Magazine

Auction Finder

Auction Finder

CropTec

CropTec

LAMMA 2020

LAMMA 2020

You are viewing your 1 free article

Register now to receive 2 free articles every 7 days or subscribe for unlimited access.

Subscribe | Register

Arla revenue up 3 per cent to £987m but no-deal Brexit could hit profits

Less market volatility has contributed to a 3 per cent growth in Arla Food UK’s half year revenue to £987m (€1.131bn).

TwitterFacebook
Share This

Arla revenue up 3 per cent to £987m but no-deal Brexit could hit profits

Arla said a ‘rare stability’ in an otherwise volatile global dairy market resulted in stable prepaid milk prices to farmer owners across Europe.

 

However, it sounded caution over a no-deal Brexit.

 

Arla’s milk price remained unchanged for the first six months of the year, bar a 0.01p currency smoothing mechanism adjustment in the UK, consistently putting it at the top of the milk price league table.

 

The firm attributed the growth in part to its brands such as BoB (46 per cent), Lactofree (6 per cent), Organic (12 per cent) and Arla Pro (48 per cent), helping drive overall branded revenue growth by 7 per cent.

 

Natalie Knight, group chief financial officer, said the firm had continued to build engagement and relevance of its brands through innovation and digital content.

 

Competitive

 

She said: “Consumers are pushing for more nourishing and sustainable food choices, which is why our intensified climate agenda will help increase both the understanding of our farmer owned co-operative model and our competitive advantage.”

 

Its own farm standards scheme, Arla UK 360, was helping to drive R&D, while at the same time encouraging sustainable farming practices and high animal welfare.

 

Ms Knight said the group’s transformation programme, Calcium, which aims to improve returns to its farmer-owners and reinvest into business areas which fuel growth, had performed strongly.


Read More

‘Overall, the market, including organic, remains stable’ - Arla confirms July milk price hold‘Overall, the market, including organic, remains stable’ - Arla confirms July milk price hold
'A sustainable milk price for our farmer-owners' - Arla confirms June price hold'A sustainable milk price for our farmer-owners' - Arla confirms June price hold
Arla to hold September milk priceArla to hold September milk price
Dairy update: Muller's 1ppl milk price drop leaves it 5ppl behind ArlaDairy update: Muller's 1ppl milk price drop leaves it 5ppl behind Arla
'Delivering a sustainable milk price is our main purpose' - Arla confirms May hold'Delivering a sustainable milk price is our main purpose' - Arla confirms May hold

It has already delivered £88m (€97m) of the £68-£91m (€75-100m) full year target for 2019.

 

Calcium aims to reduce cost by more than £363m (€400m) where £273m (€300m) will go to improving the milk price to farmer owners and more than £91m (€100m) being reinvested.

 

Hard Brexit

 

But there was concern over a hard Brexit and its impact on profits.

 

In a statement, Arla said: “The potential adverse consequences of a hard Brexit continues to be our biggest risk, along with the inherent volatility of the global milk markets.

 

“With this in mind, Arla’s group revenue outlook for full year 2019 is expected to be €10.2-10.6 billion.

 

“Net profit share for 2019 is expected to be in the target range of 2.8-3.2 per cent of revenue. A potential no-deal Brexit could however negatively impact the outlook.”

TwitterFacebook
Post a Comment
To see comments and join in the conversation please log in.

Most Recent

Facebook
Twitter
RSS
Facebook
Twitter
RSS