Driven by a “record milk intake” of 14.3 billion kg across the year, Arla Foods saw a 9% rise in year-on-year revenue.
Securing a net profit of £361.9 million, the diary giant also cites “exceptional growth” in its ingredients business as well as a significant increase in milk supply in key European markets such as the UK and Denmark – which saw a 7.7% and a 3.6% uplift, respectively.
The company described 2025 as a year comprising “two very different market realities”. What started out as a balanced year for supply exploded due to “exceptional weather conditions and strong feed harvests.”
Boosted by strong global demand for value-added protein, Arla Foods’ Ingredients division saw a 43.1% rise in revenue, reaching £1.3 billion.
The group’s extensive portfolio continued to bring in considerable numbers, with Lurpak and cream cheese brand, Puck, singled out for praise. Arla’s total branded revenue rose by 6.9% to £6.12 billion.
On the UK market, the company saw net revenue growth of 5% (equivalent to £130.1 million), tempered by a 3.2% contraction in volume growth, spearheaded by “market dynamics, commodity prices and the reduced supply of milk across Europe in the early months of 2025″.
“Our historic performance demonstrates that our strategy is working,” said CEO Peder Tuborgh.
“We have strengthened our market position, delivered record value for our farmer owners, and taken important steps toward a more sustainable future.
“As a farmer, it gives me confidence to see our cooperative navigate this volatility and once again prove its worth as a strong, competitive home for our milk.”
He continued: “We are seeing a natural market cycle where high milk production brings prices down across the sector. While the abrupt increase creates challenges, our business stands on strong pillars.”
The firm’s undeniably positive performance throughout FY 2025 illustrates a strong ability to bounce back from adversity in the face of December 2024’s infamous ‘Milk Gate’ scandal.
Arla’s use of a cow feed additive designed to help reduce methane emissions prompted misinformation to spread like wildfire online in late 2024 – outlandishly linking the product to a plot involving US billionaire Bill Gates and an attack on male fertility rates.
A few months on from the event, the UK managing director Bas Padberg told The Grocer, any impact on sales "would be marginal" and it appears he was right.
