GLOBAL – Arla Foods has hailed the year 2013 as a company best with results showing the highest performance price ever, net profits of 2.2 billion DKK and 60 per cent growth in China.
Total company revenue lifted 10 billion DKK to 76.3 billion DKK. This was due to strong performance within the company’s EU stronghold and further afield in Russia, China, the Middle East and Africa.
The announcement comes despite pressure on Arla’s main brands – Arla, Castello and Lurpak – from discount labels.
The UK is Arla’s biggest market, followed by Sweden and Germany. However, Denmark remains its biggest producer.
Where success has been noted is from the value of milk, said Arla Food chief executive officer Peder Tuborgh. “Milk has become a more valuable commodity globally, and that naturally has a positive effect on our results.”
In the ‘tailwind’ produced by higher prices, Mr Tuborgh said the Arla business has been driven forward.
He added: “Our main focus is to create the best possible milk price for our owners, and the 2013 results confirm that we have the right strategy to achieve this.”
Arla said company success is based on performance price as this indicates value generated from milk sold by cooperative owners in Sweden, Denmark, Germany, the UK, Belgium and Luxembourg annually.
Expectations for 2014 are for revenues and net profits to grow to 79 and 2.4 billion DKK respectively.
And although he expects performance price to rise again in 2014, Mr Tubour said: “Arla operates in a complex industry where production and thereby the supply of milk dictates the milk prices in a global and interconnected world.
“For example a drought in New Zealand can impact prices in Europe.
“We are off to a good start in 2014, but we are well aware that a lot of milk is being produced in the world at the moment which may put pressure on prices late in the year.”
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