Arla Foods chalks up profits
Though milk prices have been falling, the company has declared a profit.
05/12/05 Arla Foods has chalked up profits growth this year despite falling farm-gate milk values – the only one of the big three dairy processors to do so,
Chief executive Tim Smith said the rise in underlying pre-tax profits to £44.5m in the year to October was the pay-off from its merger with Express Dairies.
The dividend to shareholders was up 7% on record sales of £1.32bn, boosted by new fresh milk business with Asda, the company said.
Key growth has come in imported spreads, like Anchor and Lurpak, and in Arla’s extended-life milk, Cravendale, which accounted for a third of UK turnover.
Record milk volumes were underpinned by the growth of Arla Foods Milk Partnership, its dedicated farmer supply base and itself a major shareholder in Arla Foods.
Its 1600 members now supply more than 70% of Arla’s milk and are on target to supply 80% by April 2006.
But the outlook for raw milk suppliers is still bleak, with Mr Smith warning of further downward price pressure.
http://www.fwi.co.uk/Articles/2005/12/02/91123/Arla+turns+a+profit+despite+falling+milk+prices.htm
