Arla Foods UK sees profits dip in full-year results
Arla Foods UK saw its annual revenue for 2024 decrease to £3.03bn compared to £3.05bn in the year prior, according to a recent Companies House filing.
The parent company of Lurpak’s gross profit decreased to £391m from £405.9m in the same period, and the net profit fell to £30.8m from £36.2m in 2023.
The reduction in profit was due to “ongoing market volatility and geopolitical turbulence”, said the business, as well as paying a competitive price to dairy suppliers.
Arla Foods UK said: “2024 was a year of strong performance in the UK for branded growth, carrying forward the growth momentum from H2 2023. Branded revenue had a significant impact, achieving 7.6% growth during the year.
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“Arla’s UK foodservice division also saw strong volume growth, with strategic branded revenue growth a main contributor. Following changes in the external landscape, such as lower prices and overall milk volume declines, plus adjustments to private label volumes, UK revenue saw a slight decline year on year.
“However, during the second half of 2024, dairy commodity prices increased, driven primarily by dairy fats, resulting in increased exit rate consumer prices. Consequently, the outlook for 2025 is one of higher revenues and potentially lower volumes as we move into the next phase of the dairy commodity cycle.”
3 Comments. Leave new
I work in a Supermarket and from what I hear from quite a few customers and myself, they don’t buy Lurpak butter anymore due to the alleged chemical additive’s they put into the cows feed to reduce methane!
Same here! Payne’s for milk, Longley Farm for cream, and Garstang for my Cheese. Bovaer free, including mad cow disease part 2
“Additves” – rubbish. I stopped buying because 1.The extortionate price (almost £5 a tub) and 2. The butter has become watery ( it now slides off the knife) and doesn’t taste like Lurpak anymore.