September 27, 2020


Arla Foods UK rides out pandemic as it posts almost 5% growth in revenue in H1



Arla Foods reported strong results in its UK operations despite the impact of COVID-19 on the food-service sector.


Arla Foods UK revenue in the first six months reached £1 billion (US$1.275 billion), up 4.7% year-on-year, as reported by The Westmorland Gazette.


The Denmark-based cooperative, however, said that the performance may not be sustained for the rest of the year due to changes in profitability, operating costs and temporary demand.


The changes, though, saw an increase in dining in and a boom in home baking, leading to an increase in retail demand for the firm's products such as Cravendale milk and butter from the Lurpak and Anchor brands, Arla Foods noted.


Sales for the brands Cravendale, Lurpak and Anchor also grew 22%, 20% and 17%, respectively, between January 1 and June 30, compared with the first half of last year.


"The COVID-19 pandemic is one of the most severe crisis situations I have experienced as CEO of Arla, and we—as many other food companies—saw a very quick change in consumers' eating habits as countries shut down around the world. We quickly channelled milk from our Foodservice business into retail and successfully maintained a steady flow of products in demand. This shows just how robust and agile our cooperative really is for our dairy farmers", Arla Group CEO Peder Tuborgh said.


Arla Foods is owned by 10,300 dairy farmers, of whom around 2,400 are British. The UK is its largest market.

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