Arla Foods UK has reported a solid set of results for its first half, helped by continued demand from at-home consumers and increased uptake from the foodservice industry.
For the six-month period, revenue at Arla UK rose by 3% to £1.1bn, even as the wider Arla Group saw its revenue up 1.2% to €5.44bn (£4.66bn).
In the UK, retail and online sales of its branded products were boosted by increased in-home consumption. Strategic brands saw revenue grow by 4.6% year-on-year, helped by a 10% increase in demand for Arla Cravendale, a 21% surge at Arla B.O.B., and a 34% jump in sales of Arla Protein milk. Across the full Arla brand range, revenues were up 13% on average.
Meanwhile, Arla UK’s foodservice business was up a strong 21% year-on-year, helped by the gradual reopening of its restaurants, pubs, and canteens. The company’s licensed brands also did well, boosted by a 42% jump in volume sales of its RTD Starbucks offer.
Ash Amirahmadi, MD of Arla Foods UK said: “Demand for dairy has remained strong over the first half of 2021 as people continued to turn to our household Arla branded product range as they cooked and dined at home more. Whilst we do expect our brands to continue to perform well in the market, we will also see a different second half of the year with some retail demand being replaced by out-of-home consumption.”
