Global dairy company Arla Foods has reported “strong growth” in the second half of 2023, reaffirming a positive outlook for the first half of 2024. The company’s UK revenue increased by 2.4% in 2023, reaching £2.6 billion. This growth, although lower compared to the 17.5% growth in 2022, was attributed to challenges related to high inflation and elevated dairy prices. Nevertheless, Arla noted a return of consumers to branded products in the latter half of the year.
Within the UK, branded volumes showed a 2.2% increase, driven by notable growth in Arla Protein and Arla Pro, which grew by 66.4% and 8.5% respectively. Bas Padberg, the managing director of Arla Foods UK, highlighted the company’s resilience in adapting to market challenges, thanks to the efforts of farmer owners, employees, and management. He emphasized the importance of easing pressures on consumers while ensuring fair prices for farmers.
Padberg expressed satisfaction with Arla’s brand portfolio, citing its performance in volatile conditions and strong recovery in the second half of 2023. He also mentioned the company’s progress towards its CO2e reduction target for 2030, highlighting ongoing innovation and action across the business.
Looking ahead to 2024, Arla expects its group revenue to range between €13.2 – 13.7 billion. This outlook reflects anticipated reductions in sales prices compared to the record highs seen at the start of 2023, as well as adverse currency effects. Despite these challenges, Arla remains focused on delivering value to both consumers and farmers while maintaining its commitment to sustainability goals.
