Arla Foods Reports Strong Growth and Record Payouts in 2024
Revenue for Arla Foods, one of the largest dairy companies in the world, reached €13.8 billion in 2024. The company reported a net profit of €401 million which allowed it to make the highest ever supplementary payment to farmer owners.
Key Financial Highlights
- Revenue: €13.8 billion, driven by strong demand and efficient management of expenses.
- Performance Price: Increased to 50.9 euro cents per kilogram of milk, the second highest in company’s history.
- Brand Growth: Growth achieved in volume for key brands, like Arla®, Lurpak®, Puck®, Starbucks™, and Castello® was 3.7% for the brands.
- Efficiency Savings: Net savings of €131 million were achieved under the ‘Fund Our Future’ program.
- Farmer Payouts: Record supplementary payment of 2.2 euro cents per kilogram totaling €292 million.
Sustainability Efforts
Sustainability efforts continued to be advanced by Arla’s FarmAhead™ initiative. The company gave farmer-owners tools to help measure and work on their environmental impact.
- Climate Checks: More than 200 data points collected per farm to assess sustainability.
- Incentive Model: Farmers who take climate actions are rewarded, incentive points were increased from 50 in 2023 to 53 in 2024.
- Emission Reductions: A further 4 percentage points reduction in Scope 1 and 2 emissions brings the decline to 37% since 2015.
- Customer Partnerships: Contracts for climate projects with a coverage of more than 4 billion kilograms of milk have been secured.
2025 Outlook
Arla anticipates revenue to be in €14.5 to €15.3 billion range by the year 2025. This is expected to benefit from higher dairy prices as well as stable consumer purchasing power. On the other hand, geopolitical tensions, such as the conflicts in Ukraine and the Middle East, can disrupt global supply chains.
