Half-year results 2025: Arla celebrates 25 years of cooperative strength with stable performance
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European dairy cooperative Arla's performance in the first half of 2025 underlines its commitment to creating value for its farmer members. This is reflected in a competitive milk price, important investment decisions and further progress in the area of sustainability in the first half of 2025. In the German market, Arla's business also developed positively overall in the first six months of 2025. In Germany, the dairy cooperative is among the top 5 in the dairy industry and is represented with brands such as Arla Buko, Arla Skyr and Arla Kærgården as well as private labels.
This year, the Arla dairy cooperative is celebrating its 25th anniversary; the result of the merger between the Swedish cooperative Arla and the Danish cooperative MD Foods in 2000, which created a transnational dairy cooperative owned by farmers.
Despite a volatile market, the half-year results were in line with expectations. Turnover in the first half of 2025 amounted to 7.5 billion euros, with a net profit of 158 million euros. Arla achieved a competitive milk price of 57.5 cents per kg milk (price for conventional and organic milk in all seven European Arla producer countries). The milk performance price measures the value added per kg of milk by cooperative members, including the annual supplementary payment and retained profits in the form of individual and collective capital contributions, and is an important financial indicator for the dairy cooperative. In Germany, the Arla price paid to farmers for conventional milk in the first half of 2025 averaged 55.4 cents/kg (at 4.2% fat and 3.4% protein; price including the planned half-yearly back payment). Based on the overall results, the Supervisory Board has decided that Arla will make a semi-annual additional payment of 1 cent per kg of milk to the farmers based on the half-year volume delivered.
"On our 25th anniversary, the strength of our cooperative model and the commitment of our farmers and employees is once again clearly evident. On this basis, we were able to achieve a good result in the first half of 2025, even in volatile times. It reflects our ongoing commitment to nutritious and sustainable dairy products and how we create value for our cooperative members," explains Peder Tuborgh, CEO of Arla Foods.
As expected, geopolitical uncertainties and higher commodity prices for dairy products created a more challenging market environment in the first half of 2025. These factors led to a 1.5 percent decrease in sales volume for Arla's branded products (vs. H1 2024) as consumers became more cautious in the face of higher prices and economic uncertainty.
"Although we saw a slight decline in sales of our branded products in the first half of the year, we expect the situation to improve in the second half of the year. Thanks to our continued focus and the strength of our brands, we are well positioned to respond to changing market conditions. For the full year, we expect volume-based sales growth of our branded products to be in the range of -0.5 to +0.5% in total," says Torben Dahl Nyholm, Chief Financial Officer of Arla Foods.
Arla's performance has also been improved by exceptional results in the ingredients business. This can be attributed to the successful integration of the acquired Volac Whey Nutrition. This has significantly strengthened Arla's market position at a time of high global demand for milk proteins. The strong growth in this segment reflects Arla's ability to meet the changing nutritional needs of a growing global population and drive innovation across the food industry.
Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.
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