Arla Group has experienced a “strong year”, seeing its profits and sales increase, boosted by the performance of its branded ranges.

In the full 2024 financial year, the diary giant saw its net profit share of revenue increase by 2.9%, up from 2.8% in 2023. Group sales rose to £11.4bn (€13.8bn), up from £11.3bn (€13.7bn) the previous year.

It was Arla’s branded ranges that saw a resurgence in purchasing power, with strategic brands Arla, Lurpak, Puck, Starbucks and Castello achieving a volume-driven sales growth of 3.7%, compared to a decrease of 0.7% in 2023.

Arla chair Jan Toft Nørgaard said: ”Arla’s strong results in 2024 are a testament to the dedication and skill of our farmer owners and employees.

“Our competitive milk price and financial performance reflect our ability to navigate a complex market landscape effectively and deliver value to our stakeholders.”

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However, looking at the year ahead, Arla warned that high price levels and consumer uncertainty might lead to cuts.

The Danish-Swedish multinational dairy producer said it now predicts dampened branded volume-driven revenue growth, projected to be down by 2 percentage points to 1.0%, in 2025. Arla added that it also forecast making “efficiencies” in 2025 of between £74.5m (€90m) and £91.5m (€110m).

Elsewhere in its financial update, the diary manufacturer hailed its sustainability efforts, citing science-based farming technology FarmAhead, and other emission reduction schemes.

“We remain steadfast in our sustainability journey, and we are on track to meet our ambitious goals. In 2024 we took the lead in sustainability for the dairy industry with our innovative FarmAhead initiatives,” said Arla Foods CEO Peder Tuborgh.

“Our integrated approach not only reduces emissions but also adds value to our customers and farmer-owners, demonstrating our commitment to shaping a sustainable future”

It’s chief executive’s comments follow Arla earlier this month coming under fire from climate campaigners, which claimed the dairy giant has been selling consumers a “fairytale” and is not doing enough to hit its sustainability targets.