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Strong first half of 2025 for Arla and bonus members
Arla Foods has had a strong first half of 2025, with revenues of €7,5 billion and net profit of €158 million. Members received a performance price of €57,50 per 100 kilos. In addition to this milk payment, and in anticipation of a final milk price, members will receive an initial supplementary payment of €1,00 per 100 kilos of milk.
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The good news comes as Arla celebrates the 25th anniversary of the merger between the Swedish cooperative Arla and the Danish cooperative MD Foods.
Despite the strong performance, geopolitical uncertainty and higher dairy commodity prices made for a challenging market in the first half of 2025. As a result, sales volumes of Arla Foods' branded products declined by 1,5% compared to the first half of 2024. Arla expects modest growth in the second half of 2025, meaning branded product growth will be broadly neutral for the year as a whole.
In Europe, Arla achieved a 2025% increase in revenue to €10,9 million in the first half of 4.267. This was primarily due to higher prices in the retail and foodservice sectors as a result of rising raw material prices. However, the high price level of dairy products led to a 2,4% decline in revenue growth based on branded volume compared to the previous year. The decline was most pronounced in the butter, spreads, and margarine (BSM) category, which declined by 8,3%, particularly in Sweden and the United Kingdom. Conversely, growth in the Skyr/Quark and milk-based beverages (MBB) categories continued, partly due to Arla's successful launch of Starbucks in Belgium and France. In the Netherlands, Belgium, and France cluster, Arla achieved 5,8% growth in branded volume.
Ingredients branch
Arla experienced strong growth in its ingredients business over the past six months. The successful integration of Volac Whey Nutrition led to strong growth in this segment. "The results for the first half of 2025 demonstrate that at Arla, we always strive for healthy, sustainable dairy products and the highest possible value for our farmers' milk," said Esther Tromp-Strijdveen, senior vice president of Arla Foods in the Netherlands, Belgium, and France, in a press release. "The strong growth in the ingredients business demonstrates our commitment to driving innovation in the food industry and meeting the changing dietary needs of a growing global population."
The ingredients division achieved revenue growth of 53,7% to €726 million. This was driven by strong market demand for dairy proteins, high prices for both basic and value-added products, and the successful integration of the Volac Whey Nutrition business, which contributed €137 million to revenue. Value-added products grew by 37,3%, increasing the total value-added share to 82,9%.