Arla Foods reports revenue growth in 2024, forecasts further gains in 2025

DENMARK – Denmark’s Arla Foods reported an increase in revenue for 2024 and projected further growth in 2025, attributing the positive outlook to higher dairy prices.

The cooperative, known for brands such as Lurpak butter and Castello cheese, stated that demand for its products remains strong globally.

According to a report by Arla, revenue for 2024 reached 13.8 billion euros (US$14.43 billion), slightly higher than the 13.7 billion euros recorded in 2023. 

The company forecasted that revenue would rise to between 14.5 billion and 15.3 billion euros in 2025, with growth expected to be driven by sustained high dairy prices. 

The cooperative, owned by 7,600 dairy farmers across seven northern European countries, also increased its dividend payout for 2024 to a record level.

Arla CEO Peder Tuborgh said the company has continued to focus on cost reductions while maintaining strong sales momentum. 

“We see a high demand for dairy and our products in particular across the globe,” he stated. 

The company noted that consumer purchasing power improved in 2024 due to easing inflation and rising wages, a trend it expects to remain stable in 2025.

The company’s profit for 2024 stood at 401 million euros, representing 2.9% of its revenue. 

It projected that profitability in 2025 would remain within its target range of 2.8% to 3.2%. 

Arla also stated that global dairy supply, which fell short of demand in 2024, is expected to adjust to the higher price levels, potentially boosting production in 2025.

Despite the optimistic financial outlook, Arla expressed concerns over geopolitical uncertainties affecting global trade.

 It cited the ongoing war in Ukraine and developments in the Middle East as factors that could impact supply chains and market stability. 

The company emphasized the need for resilience amid these challenges.

Arla, which competes with major dairy firms such as Danone and Nestlé, remains one of the largest dairy cooperatives in the world. 

It operates in Denmark, Sweden, Britain, Germany, Belgium, Luxembourg, and the Netherlands, with its farmer-owners playing a central role in the company’s operations.

An Arla spokesperson highlighted the importance of maintaining steady production and meeting consumer demand despite external uncertainties. 

“We are confident in our ability to navigate the market and continue delivering high-quality dairy products,” the spokesperson said.