Arla Foods puts in strong performance against challenging backdrop
Arla Foods, which employs around 1,000 staff in Leeds, said it put in a strong performance in 2016 against a backdrop of volatile market conditions.
The farmer-owned dairy company saw its overall revenue in the UK drop from 2.5bn euros in 2015 to 2.2bn euros last year, which it said was a direct result of lower global market prices and unfavourable exchange rates.
The company said: “As with the Arla Group, the UK business was not immune to challenges facing the global dairy industry but with the growth from its branded portfolio, this enabled the UK to play a positive role in the group performance.”
Arla Foods UK said it is focusing on developing its three strategic brands Arla, Lurpak and Castello, with the ambition of making the Arla brand a top household name by 2020.
Tomas Pietrangeli, managing director, Arla Foods UK, said: “In a year of continuing changes in the grocery market as well as political uncertainty, we were able to deliver a strong set of results by driving growth in the UK through our portfolio of popular products, and delivering efficiencies and cost savings in our supply chain.
“We maintained our commitment to innovation with a number of new and exciting product launches which achieved listings and consumer impact early on, and are performing well.
“Despite these exciting developments we are, however, conscious of the longer-term context and potential impact of Brexit. That’s why we’re working closely with the wider food and farming industry, and with Government, to try and maximise opportunities of Brexit, whilst mitigating potential risks.
“In 2017, we will focus on implementing our UK Strategy 2020 and continue to champion British dairy to help generate greater returns for our farmer owners.”
Europe is Arla’s core commercial zone, contributing to 66% of group revenue in 2016. The UK is the largest market within the Europe Zone, contributing 35% of that zone and comprises 25% of the group revenue.
