VIBY, Denmark – In 2024, Arla Foods – the fifth biggest dairy company in the world and the largest producer of dairy products in Scandinavia and United Kingdom – experienced a strong year, with revenue increasing to EUR 13.8 billion and strong profit levels enabling the highest dividend payout to farmer-owners in the company’s history.
In 2024, Arla Group’s total revenue reached EUR 13.8 billion and the company achieved a net profit of EUR 401 million. The performance price increased to 50.9 EUR-cent/kg, marking the second-highest level in Arla’s history and reflecting strong market demand and effective cost management. As a consequence, Arla proposes a supplementary payment of 2.2 EUR-cent/kg milk delivered, marking the highest dividends paid to the farmer owners in the company’s history.
”Arla’s strong results in 2024 are a testament to the dedication and skill of our farmer owners and employees. Our competitive milk price and financial performance reflect our ability to navigate a complex market landscape effectively and deliver value to our stakeholders.” says Jan Toft Nørgaard, Chair of Arla Foods.
In 2024, consumers across Europe saw a resurgence in purchasing power and Arla Foods saw a return to branded volume growth, as Arla’s strategic brands Arla®, Lurpak®, Puck®, Starbucks™ and Castello® achieved a volume-driven revenue growth of 3.7%, compared to a decrease of -0.7% in 2023. This rise in brand growth significantly contributed to Arla’s high revenue level.
Arla’s Fund, the Future transformation and efficiency programme exceeded expectations and achieved a net saving of EUR 131 million.
The strong financial performance enabled the Arla Board of Directors to propose the company’s highest-ever supplementary payment of 2.2 EUR-cent/kg of milk delivered, totaling EUR 292 million. This payment underscores Arla’s commitment to delivering value to its farmer owners and exceeds the level set in Arla’s Retainment Policy.
“I am delighted that Arla Foods is performing well, and we see a high demand for dairy and our products in particular across the globe. The highest ever supplementary payment, along with a competitive milk price, reflects Arla’s financial strength”, says Peder Tuborgh, CEO of Arla Foods.
In 2024 Arla continued to invest in significant projects to support future operations. Investments reached a record high of more than EUR 1 billion.
Arla’s Starbucks™ ready-to-drink (RTD) coffee assortment, available in more than 50 countries in Europe, the Middle East and Africa, delivered 0.8% volume growth in 2024. The growth was mainly driven by the European business, which grew volumes by 2.8% due to enhancements in distribution and channel strategies, along with the successful introduction of Ready-To-Drink Protein Coffee in the UK. The international markets experienced a volume decrease of -3.5% driven by negative impact from the ongoing turmoil in the Middle East, however partly offset by strong growth in Rest of the world.
Annual Results 2024 key figures:
- Group revenue: EUR 13.8 billion (2023: 13.7)
- Performance price: 50.9 eurocent/kg (2023: 47.0)
- Milk volume: 13.7 billion kg (2023: 13.9)
- Net profit share of revenue: 2.9% (2023: 2.8%)
- Proposed supplementary payment: 2.2 EUR-cent/kg of milk delivered (2023: 2.1 EUR-cent/kg of milk delivered)
- Net efficiencies: EUR 131 million (2023: 114)
- Leverage: 3.2 (2023: 2.6)
- Overall strategic branded volume driven revenue growth: 3.7% – Includes Lurpak® Arla ® Puck® Castello® Starbucks ™ (2023: -0.7%)
Sustainability
- Scope 1+2 emissions reduction: 4%P
- Scope 3 emissions reduction: 1%P
- Absolute emissions related to milk reduction: 3%
- Arla consolidated its sustainability efforts under the FarmAhead™ brand, underscoring a dedicated push towards science-based farming.
