News Annual figures
Arla continues to grow strongly in the Netherlands
Arla is successful in the Netherlands, as the turnover of the Scandinavian dairy cooperative increased by almost 8% last year. That is considerably higher than the turnover growth of the entire group. In its own words, this growth is due to the sale of branded dairy.
Arla is active in 7 countries and the result of the total group for 2018 amounts to €10,4 billion, an increase of €100 million (+3,6%) compared to the previous year. The exact retail turnover in the Netherlands amounted to €272 million. The results within the Netherlands therefore have a limited influence on the overall result.
Arla is strongly committed to dairy brands. The group is trying to gain market share with products such as 'Arla skyr'. In the Netherlands it claims to have a market share of more than 10%. More than 45% of the group's total sales can now be grouped under one brand, which means that the target for 2020 has already been achieved.
Net profit to dairy farmers
Due to the dry summer, the more than 11.000 Arla dairy farmers are confronted with rising feed costs and a declining milk supply. That is why the management of Arla has decided to pay out the full net profit for 2018 to the members of the cooperative on a one-off basis. This is an amount of €290 million, which means that the dairy farmers receive a supplementary payment of €0,023 for every kilo of milk delivered.
The Scandinavian Arla says that the average milk price of the group for 2018 is €36,40 per 100 kilos of milk. As compared to other Dutch dairy farmers Arla's milk price is in the middle bracket.
Towering growth ambitions
Arla has significant growth plans for 2019. For example, the dairy cooperative wants to invest €485 million; including in a new powder tower in Pronsfeld, Germany. Several factories in Northwestern Europe are also being modernised.
In addition, the dairy also comes with a turnover estimate for this year; it is probably between €10,2 and €10,6 billion. The debt burden of the dairy group will probably be between 2019% and 2,8% in 3,4. That is within the target.
Wouter Job
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