Arla UK revenue reaches £1.2bn during H1, ‘challenging’ H2 conditions predicted

A revenue figure of £1.2bn represents an 11% year-on-year decline, which Arla put down to falling commodity and commercial prices when compared to the high levels of inflation present during 2023.

Nonetheless, Arla saw 11% volume growth across its branded portfolio in the UK driven by Lurpak, Arla Protein and Arla Pro. This translated to an increase in branded revenue of 5.4%.

During the first half of 2024 Arla also announced investments totalling £300m across several UK sites. This includes a £179m investment​​ in new technology at its Taw Valley Creamery in Devon.

Arla predicts that consumer confidence will improve during H2, despite ongoing market uncertainty.

However, an upturn in demand for dairy products coupled with reduced global milk volumes could result in higher retail prices.

‘Trading conditions will be more challenging in H2’

Commenting on the result, Arla Foods UK managing director Bas Padberg said: “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.”​

Looking ahead to H2, Padberg admitted that “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”.​

He concluded: “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.”​

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