Protein trend boosts Arla's results in volatile year

Revenue grew by almost 10% to a record €15,1 billion, while net profit increased by 3,5% to €415 million. Milk supply reached 14,3 billion kilos, thanks to a rapid increase in production in the second half of the year. The performance price for member dairy farmers reached a record €56,4 per 100 kilos. On top of this, there is a supplementary payment of €2,20 per 100 kilos.

According to Peder Tuborgh, CEO of Arla Foods, this meant 2025 had two faces: rising prices in the first half and a rapidly declining market after the summer. The CEO knows from years of experience that the dairy market is cyclical, but he has never experienced this before. Despite the rapid market changes, Arla's portfolio held up well. "This proves that our strategy is working," says Tuborgh. Of all Arla's major brands, only Lurpak saw a slight decline in sales.

Ingredients division flourishes
The strong performance of the ingredients division is striking, with revenue increasing by over 40% to €1,45 billion. This division contributes significantly to the cooperative's profitability. Besides strong global sales opportunities, revenue was significantly boosted by the acquisition of the British company Volac, which was completed at the end of 2024. Arla expects growth of approximately 10% to continue in the coming years. The trend toward high-quality proteins is not considered a fad. With the proposed merger with DMK, Arla's whey production will further increase.

Arla's management is reluctant to comment on the merger's progress. The merger has already been approved by a large majority of the members of both cooperatives, but the European Commission still needs to give its approval. This process has been delayed, but Arla expects that further steps can be taken sometime this spring to finalize the integration of DMK.

Cautious market recovery in early 2026
The outlook for 2026 is still uncertain. Arla expects milk supply to weaken in the second half of 2026 due to lower milk prices. Tuborgh notes that the dairy market is bottoming out in mid-February after a sharp decline, which, he believes, offers prospects for market recovery in the coming months. However, the market is not expected to return to previous levels anytime soon, as revenue for 2026 is estimated to be lower, in a range of €13,3 to €14,1 billion.

During the press conference, the CEO finally revealed that Arla is in the process of completing one of the largest investments in the company's history. He declined to elaborate further. Details will be released in the coming weeks.