Archive: Arla Foods announce growth in challenging year

Published 18 February 15

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Arla Foods has seen total revenues increased for 2014 despite weakening markets. According to its annual financial results, global revenues reached €10.6 billion, an increase of 7.5% from 2013. The growth in the number of owners, which provided a 5.5% increase in milk volumes, was the largest factor driving revenue growth. However, average returns per litre of milk were also up year-on-year resulting from good revenue growth in the cheese and milk powder categories.

As profits are pre-determined as 3% of total revenue, the remainder of the cooperative’s revenues are paid out to its owners through the performance price, which is a combination of the monthly milk price and the 13th payment. The performance price is therefore a good indicator of the value generated from milk. For 2014, Arla reported an average performance price of 41.7 eurocent/kg for 2014, up 1.7% from the previous year, although results differed by owner country.

Arla performance price 2014