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Business

Arla declares strong interim results

But there are plenty of challenges ahead


Markets in China, the Middle East and Africa were kind to Arla, but challenges await in unstable Russia (Photo: Arla)

August 28, 2014
18:41

by Christian Wenande


The Danish and Swedish farmers who make up the Arla Group dairy co-operative can expect some solid returns after the company posted strong financial results for the first half of 2014.

Arla’s revenue increased by 11 percent to 39.8 billion kroner for the first half of 2014 compared to the 35.7 billion kroner of revenue it enjoyed during the first half of 2013.

“We are pleased to see that our strategy for creating more growth outside Europe is working, and that we have accelerated growth outside our European core markets,” Frederik Lotz, Arla’s head of finance, said in a press release.

“Our overall organic growth is satisfactory – we are however facing a difficult period and tough market challenges ahead."

READ MORE: Russian import ban a step back for Arla

Double up in China
Those challenges include a downward trajectory in the global raw milk trends and the unstable situation in the Russian milk market, which accounts for one percent of Arla’s total revenue.

Fortunately, there was better news for Arla in its markets in the Middle East and Africa, which grew by 17 percent, and in China where revenue has doubled.

Arla expects full-year revenue of 79 billion kroner – well above the 73.6 billion kroner it managed last year.



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