Additional payment Arla exceeds its own expectations

Turnover of €13,7 billion is slightly lower than the year before, due to unfavorable currency influences and falling dairy prices. Bottom line, this results in a profit of €380 million. This is at the lower end of the target that the dairy cooperative aims for itself and also €20 million lower than the year before.

Recovery in branded dairy
Despite the decline, Arla's management looked quite pleased with the result when presenting the annual figures. "It was a year of two halves for us," said CEO Peder Tuborgh. In the first half, sales of branded dairy products were still 6% lower, but in the second half growth of 4,1% was visible after inflation subsided somewhat. The milk price will drop to €2022 per 47 kilos after a record year of 100. This is still 15% above the long-term average.

€270 million in dividends will be paid out to Arla's member dairy farmers. In concrete terms, this results in a supplementary payment of €2,07 per 100 kilos of milk. This is higher than previously expected and also above our own target of €1,50. However, it is lower than last year when the additional payment was €2,20. Milk intake increased slightly last year to 13,9 billion kilos.

More than 10% market share in the Netherlands
In the Netherlands, Arla reports an increase in turnover of just under 10% to €488 million. The underlying volumes increased by almost 7%. There was also a market recovery in our country, especially in the second half of the year. Over the whole of 2023, the market share in Dutch supermarkets increased to 11,1%, which is a record. Mark Boot, who heads the Dutch branch, speaks of a good year with solid results.

Positive outlook
Arla expects that the trend set in the second half of 2023 can be continued in the first half of this year, taking into account persistent market volatility due to geopolitical unrest and pressure on purchasing power. Turnover is estimated at between €13,2 and €13,7 billion with a profit margin between 2,8 and 3,2%.