Arla Foods UK saw its first half revenue increase 3% to £987m thanks to decreased dairy market volatility, its transformation programme, and strong growth of its branded lines.
The first half of 2019 saw a rare stability in the otherwise volatile global dairy market resulting in stable prepaid milk prices to farmer owners across Europe. Arla’s milk price to its farmer owners remained unchanged for the first six months of the year.
This was supported by a continued development of Arla’s branded offer. Notable sub brand growth included BoB (46%), Lactofree (6%), Organic (12%) and Arla Pro (48%), helping drive Arla’s overall branded revenue growth by 7%.
Natalie Knight, Group CFO commented: “We have continued to build engagement and relevance of our brands through innovative products, brand activation and digital content. Consumers are pushing for more nourishing and sustainable food choices, which is why our intensified climate agenda will help increase both the understanding of our farmer owned cooperative model and our competitive advantage”.
However, the group warned that a potential no-deal Brexit, along with the inherent volatility of the global milk markets, could impact the business in the second-half of the year.
