Arla sales rise after ‘turbulent’ six months for dairy

By Matt Atherton

- Last updated on GMT

Arla Foods UK sales increased 4% over the six months to July 1
Arla Foods UK sales increased 4% over the six months to July 1

Related tags Milk

Arla Foods UK reported a 10% sales rise in its branded products in the six months to July 1, driven by its Lurpak butter and Castello cheese brands, after a “turbulent” six months for the sector.

The dairy processor’s total sales were up 4% compared with the same period last year, it reported today (August 25). Arla-branded product sales increased by 15%.

The company welcomed the results, as the sector had been enduring a challenging six months, Arla said.

‘Defining time for British dairy’

The dairy processor’s md Tomas Pietrangeli said: “This success is likely to be welcomed given the wider turbulence of the last six months. We are entering a defining time for British dairy as the UK finds its place outside the EU.

“Arla will continue to work in the coming months and years on generating greater returns for our farmer owners and being a champion of British dairy at a time when it needs one the most.”

Arla-branded products’ sales rise were driven by its yogurt category, with Arla Protein and Arla skyr reporting sales increases of 59% and 82%, respectively.

Profitable growth

But, volume driven sales were down 4.5% over the six months, as the company took significant steps to drive its profitable growth, Arla said.

Alongside its half-year results, Arla revealed that it was increasing its milk prices by 0.81p to 30.79p. The price rise would be a welcome boost to the company’s farmers, it said.

Arla Foods ceo Peder Tuborgh said: “As the global dairy market improved, we have responded to the sustained rally in global dairy prices while continually improving our product mix across key markets.

“As a result, we have increased the on-account milk price to the farmers, who own our company, by 42% over the last 12 months. They needed that, as the past two-and-a half years have been tough for most dairy farmers around the world.”

Meanwhile, last month, Tuborgh said that a butter and cream shortage​ will hike prices in the lead up to Christmas.

Arla Foods UK half-year results – at a glance

  • Branded sales up 10%
  • Arla-branded sales up 15%
  • Total sales up 4%

Related topics Dairy Dairy-based ingredients

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