Arla Foods, the parent company of Lurpak and other brands, reported a strong performance in its half-year results, with revenue increasing by 12.8% year-over-year, to approximately £6.5bn.

The dairy manufacturer’s net profit decreased to £136.7m from £144.5m in the year prior but remained in line with the company’s financial forecasts.

Arla Foods branded product sales decreased by 1.5% compared to last year, driven by increasing dairy commodity prices and cautious consumer sentiment due to inflation and economic uncertainty.

Additionally, geopolitical uncertainty and a “challenging market environment” affected overall branded growth, the company said.

Peder Tuborgh, CEO of Arla Foods said: “As we mark our 25th anniversary, Arla Food’s ability to maintain a solid performance in a volatile market clearly demonstrates the strength of our cooperative model and the dedication of our farmer-owners and colleagues.

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“Our performance in the first half of 2025 reflects our ongoing commitment to healthy, sustainable dairy and to creating value for all those who depend on Arla Foods.”

The manufacturer raised its full-year outlook and projects branded growth of between -0.5% and +0.5% and estimates a full-year revenue between £12.7bn and £13.2bn.

Torben Dahl Nyholm, CFO of Arla Foods said: “Although we saw a slight decline in branded sales volumes in the first half of the year, we expect the situation to improve as we move into the second half.

“With continued focus and the strength of our brands, we are well positioned to respond to changing market conditions, and we anticipate that branded growth will be close to neutral for the full year.”

Arla Foods and DMK have approved a merger plan which is set to be completed in the first half of 2026 and will bring together two leading dairy co-operatives in Europe.