Arla Foods has published its financial results for the year ended 31st December 2024, reporting a year of “strong” performance.
The company said that “despite ongoing market volatility and geopolitical turbulence”, Arla’s brands saw increased branded revenue compared to last year, which it said was “largely driven by the Arla brand and Lurpak”.
It was a year of “strong performance” in the UK for branded growth, carrying forward the growth momentum from H2 2023. Branded revenue had a significant impact achieving +7.6% growth during the year. This was largely driven by the Arla branded products and Lurpak, but also Arla Protein and Arla Skyr contributing towards a particularly strong year for Arla’s yogurt brands.
Arla’s UK foodservice division also saw strong volume growth, with strategic branded revenue growth a main contributor.
The financial result was a net profit of £30.9 million for the year, down from 2023’s £36.2 million. Operating profit for 2023 was £64.8 million, with the 2024 result decreasing to £14.3 million.
UK revenue saw a slight decline year on year. However, during the second half of 2024 dairy commodity prices increased, driven primarily by dairy fats, resulting in increased exit rate consumer prices. Arla’s outlook for 2025 is one of higher revenues and potentially lower volumes as it moves into the next phase of the dairy commodity cycle.
