Strong global demand for dairy has propelled Arla Foods’ full-year results as the group benefited from increasing demand that pushed up milk prices.
Net profit totalled DKK2.2bn (US$405.2m), up from DKK1.9bn in 2012. Profits totalled “the planned 3% of revenue” and margins are on track, the group added. Arla’s total revenue rose by 16.6% to DKK73.6bn.
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The co-operative stressed the milk price it pays to its farmer owners, the performance price, reached the highest level in Arla’s history. The price equated to DKK3.05 per kilo with a total volume of owner milk of 9.5bn kilos.
“Milk has become a more valuable commodity globally, and that naturally has a positive effect on our results. With this tailwind we have driven our business forward in 2013 – with a strong efficient base in Europe, promising growth rates in Russia, China, the Middle East and Africa as well as a very profitable ingredients business in Arla Foods Ingredients,” Arla CEO Peder Tuborgh said.
In 2014, Arla expects to reach a sales of DKK79bn and a net profit of the targeted 3% of revenue, equal to DKK2.4bn.
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