In the first half of 2025, dairy cooperative Arla Foods said it achieved a “solid” half-year performance.

Arla reported a revenue of €7.4 billion, up from H1 2024’s revenue of €6.6 billion, stating that higher sales prices had “positively impacted” H1 2025 revenue by €728 million. Gross profit for H1 2025 reached €1.47 billion, up from the H1 2024 figure of €1.41 billion.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) were reported to be €282 million, a €16 million increase from the H1 2024 EBITDA of €266 million.

However, total profit for the H1 2025 period was down 4% on the year, reaching €167 million. H1 2024 saw profits reach €173 million, while profits for the full year totalled €417 million.

Outlook

Arla highlighted that consumer purchasing power is “expected to stay favourable” in the second half of 2025, but warned that it would remain “sensitive” to how tariff and trade conflicts develop as any escalation could “trigger higher inflation and limit consumer spending”. The cooperative went on to say that it had observed a recent increase in global milk production, which contributed to a “slight softening” of global commodity dairy prices.

Looking to the end of the year, Arla expects to maintain a “solid” performance, which it said would be driven by the strength of its brands and targeted initiatives, with a return to positive branded volume-driven revenue growth

Peder Tuborgh, CEO of Arla Foods, commented: “As we mark our 25th anniversary, Arla Foods’ ability to maintain a solid performance in a volatile market clearly demonstrates the strength of our cooperative model and the dedication of our farmer-owners and colleagues. Our performance in the first half of 2025 reflects our ongoing commitment to healthy, sustainable dairy and to creating value for all those who depend on Arla Foods.”

Torben Dahl Nyholm, CFO of Arla Foods, stated: “Although we saw a slight decline in branded sales volumes in the first half of the year, we expect the situation to improve as we move into the second half. With continued focus and the strength of our brands, we are well positioned to respond to changing market conditions, and we anticipate that branded growth will be close to neutral for the full year.”