Denmark: Arla Foods sees revenue drop in 2015
Danish dairy cooperative Arla Foods claimed to have “delivered a robust performance” despite a “tough year for the global dairy industry”, as it announced its latest financial results.
According to a press release, the company “came out of 2015 with US11.25 billion (EUR€10.3 billion) in revenue”, which was a 3.3% decline compared to 2014. The firm noted that increased milk supply in Europe combined with China’s slowdown in demand and the Russian embargo had sent world market prices down. It said it had navigated through the global crisis by moving even more of its milk into branded dairy products and foodservice, improving market positions and driving down costs.
Arla Foods CEO Peder Tuborgh commented on the outcome by saying: “We knew 2015 would be tough on all markets, and it was. Dairy prices have been under pressure worldwide all year, and every dairy farmer has felt the consequences. It affected Arla’s milk price to our owners and our revenue in 2015. Having said that, Arla has achieved what we set out to do within our business in a year when the entire dairy industry has struggled”.
He went on to add “We have worked intensely to minimise the damage from the negative global trends by reducing costs and by maintaining and improving our market positions in Europe while creating new market positions for our branded products outside the EU”.
Source: Arla (via MyNewsDesk)