Global dairy co-operative Arla Foods has reported its financial results for the first half of 2024 across the UK and globally.

In the UK market, Arla reported a “strong performance” across its branded portfolio with total volume growth of 11% and branded revenue increasing at 5.4%. Arla attributed this to brands such as Lurpak, Arla Protein and Arla Pro.

Peder Tuborgh, CEO of Arla, 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.”

Bas Padberg, managing director of Arla Foods UK, commented: “Following the high levels of inflation that we saw back in 2023, Arla has continuously reinvested back into our brands, to deliver value for our shoppers and ensure the necessary growth needed to return the highest possible milk price to our farmer owners. This combined with increased consumer buying power in the first half of the year has led to a strong performance across our branded range.

“Whilst we expect consumer confidence to remain into the second half of the year, trading conditions will be more challenging than we have seen in recent months as commodity markets rise again and we balance reduced global supply with the increasing demand for dairy.”

The company also announced investments totalling £300 million across a number of its UK sites.

Padberg added: “Arla and our farmer owners are wholly committed to the future of British dairy production. As people are increasingly looking for healthy, tasty food that is made in the best way for the environment, dairy plays a key role in this. These investments will help us futureproof our business and ensure we secure the future of our food to keep dairy staples in fridges across the country.”

Arla Group results

Arla reported volume driven revenue growth of 4.1% in the first half of 2024 compared to a decrease of 6% in the first half of 2023.

The company said its growth had been “spearheaded” by the Lurpak and Arla brands, which respectively grew volumes by 7.9% and 3.8%. Arla achieved a net profit of €167 million (around £140 million) during H1, with the total Arla revenue hitting €6.6 billion (around £5.5 billion).

Torben Dahl Nyholm, CFO at Arla, said: “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.”

Outlook for 2024

Looking ahead into the second half of 2024, Arla said it anticipates “volatile market conditions”, but said that the “positive trend” on consumer purchasing power from the first half of 2024 “should prolong into the second half”.

The company said it expects to “keep the current pace” in its efforts to reduce its climate impact, and “fully expects” to reach its 2030 emission reduction targets.