First Half Of 2011 Characterised By Growth
DENMARK - The keyword for Arla’s first half-year 2011 is growth. Revenue rose by 12 per cent, among other things due to the merger with Hansa-Milch and price increases in the market. Arla also delivered a large increase in the milk price to the cooperative members in Sweden, Denmark and Germany.
5 September 2011
2 minute read
In the first half of 2011 Arla paid out DKK 1.2 billion more to its cooperative members as payment for their milk than in the first half of 2010. This represents an increase of 14 per cent in the Arla earnings.
The growth in revenue is related to Arla’s core markets – primarily Germany, where Arla merged with the German dairy Hansa-Milch earlier this year – and to the international growth markets, which also developed very positively during the half-year.
Revenue in the first half-year 2011 totalled DKK 27 billion, compared to DKK 24 billion in the first half of 2010. In Arla’s strategy for 2015 the goal is full-year revenue of DKK 75 billion, which is to be achieved via acquisitions, mergers and organic growth.
Alra also saw growing sales in the Middle East, the US and Russia.
During the period Arla improved its Arla earnings significantly, primarily due to rising world market prices, which has made it possible to increase the milk price to the cooperative members very substantially.
This is reflected by the Arla earnings, which are DKK 2.71/kg milk in the first half of 2011, compared to DKK 2.37/kg milk in the first half of 2010, and DKK 2.52 for the full year 2010.
Arla maintained the high payment in May and June, which therefore affects the interim result. The result is thus lower than for the same period of the previous year. This is because the funds have been paid out to the cooperative owners.
For the full year, Arla expects to achieve a profit of 2.5 per cent of revenue, or approximately DKK 1.3 billion.
TheCattleSite News Desk
