Arla Foods has today (22 February) reported “strong” profits for 2007, despite having to pay for to its farmer members as the cost of dairy commodities rose last year.
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The giant Danish dairy co-operative announced profits of DKK938m (US$186.4m), despite paying out DKK1.2bn more than expected to its members in the second half of the year.
Price increases in all markets, in addition to the integration of Tholstrup Cheese in Denmark, Arla Ingman in Finland and Arla Foods UK, helped boost profits, the company said.
Arla gave no corresponding profit figure for 2006.
Turnover for 2007 totalled DKK47.7bn, up from DKK45.5bn a year earlier.
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By GlobalData“We should be proud of this result,” said Arla Foods’ CEO Peder Tuborgh. “Never before have we experienced such a turbulent year and such fluctuations in milk prices in global markets. We have succeeded in sustaining last year’s excellent level of profit while delivering significant milk price increases to our owners.
“We have, therefore, succeeded in our two main aims: to secure our owners a high milk price and offer quality products at competitive prices.”
