Arla profits double in first half of 2013
European dairy farmer-owned co-operative Arla doubled its profits in the first half of 2013 as a result of improved global markets and recent acquisitions including the merger with Milk Link in 2012.
The dairy giant behind well-known brands Cravendale, Anchor and Lurpak, reported a net profit of £120m for the first six months of 2013, compared with £56.8m for the same period in 2012.
Arla said this was in line with its farmer board’s aim for profit to be the equivalent of 3% of revenue; revenue in the first six months of 2013 increased 19% to £4.08bn from £3.3bn for the same period in 2012.
Sales in strategic growth areas – Middle East and Africa, Russia and China – grew 20% in the first half of 2013, compared with the same period in 2012, to £445m. These now account for 11% of consolidated revenue.
Owners’ milk price – price paid to Arla Milk Link farmers in the UK – for the first half of the year had increased to 32p/litre of co-op owner milk compared with 29.6p during the same period in 2012, the co-op said.
The co-op said it expected to realise revenue of £8.3bn for the whole of 2013, with milk prices set to reach more than 33p/litre.