Arla announce half year results

Published 2 September 15

Heavy pressure on global market prices (due to a reduction in demand and an increase in EU dairy product production) had an impact on Arla’s performance in the first half of 2015. Arla’s revenue fell 3.8% to €5.13 billion, compared to the first half of 2014.

The co-op stated more focus and milk was placed into retail and branded products than less profitable commodities in order to limit the impact from the falling markets. Arla also reduced investment by 30% and is on track to cut costs by €330 million at the end of 2015, compared to 2012.

Looking ahead the co-op is expecting a recovery in prices to occur in the first half of 2016, with demand growth from markets such as the Middle East and Africa.