Arla publishes half year results

Arla Foods has released its 2016 half year results showing a strong growth in key brands as it reaffirms its commitment to product innovation.

Strategic branded sales grew 6.1% in the first half of 2016, although decreasing market prices in Europe negatively affected group revenue to $5.4 (€4.9) billion, a decrease of 5.3% compared to the first half of 2015.

Key UK highlights include:

• Lurpack increased by 5% in volume growth
• Castello grew by 24% in volume terms
• Arla Lactofree continues its double digit volume growth, up 20.9%
• Having entered the UK yogurt category in 2015, Arla has significantly grown (Arla skyr +42.9% and Arla Protein +72.8%³).

Tomas Pietrangeli, managing director at Arla Foods UK, says, “In the UK, we have driven growth through our portfolio of branded products which include our three key global brands Lurpak, Arla and Castello. We also launched a range of products which are performing well and which we are confident will positively impact our full year performance. For the rest of the year, we will focus on implementing the key principles of our newly launched UK Strategy 2020, where we will continue to champion British dairy. This, in turn, will help generate greater returns for our farmer owners.

“Despite the potential challenges of Brexit, the UK remains a hugely important market for Arla and the outcome has not changed this. While we are uncertain of the implications, I hope to see our products continue to move freely to and from the UK across the markets in which we operate. We are in a strong position to not only weather any storms that may arise, but also take advantage of any opportunities.”