Arla Foods posted consolidated profits of DKK 1,094 million for the 2002/03 financial year. This represents a small advance on last year’s profits of DKK 1,085 million.*

The result, which exceeds the forecast prepared at the half year stage, corresponds to earnings per kg milk (net result ex farm) in Denmark of 256.44 Danish øre and in Sweden of 313.48 Swedish øre.

Although Danish co-operative members receive 5 øre less than in 2001/02 (when they received 261.14 Danish øre per kg milk), the Swedish co-operative owners saw a small advance on 2001/02 when earnings were 311.28 Swedish øre per kg milk.

“Despite the slowdown in the international economy and declining exchange rates, we achieved a satisfactory result,” says Arla Foods’ Managing Director Jens Bigum. “The strategy aimed at further dairy product processing has once again proved its worth.”

On the basis of the year’s result, the Supervisory Board recommends to the Board of Representatives that the Danish co-operative members receive an additional 5.5% of the basic price corresponding to 11.77 Danish øre per kg milk. It is recommended that Swedish co-operative members receive 11.80 Swedish øre per kg milk.

The Board will also recommend that 5 Danish øre per kg milk be consolidated (6.15 Swedish øre per kg) over and above a reconsolidation of 1.97 Danish øre per kg (2.42 Swedish øre per kg).

The reconsolidation is a consequence of the payments from the personal accounts which were established in connection with the mergers with Kløver Mælk and Arla.n.

*) A change in the Danish Financial Statements Act means that Arla Foods is changing its practice in some areas, including the profit and loss account. To allow for comparisons between the figures for 2002/03 and 2001/02, the consolidated result for 2001/02 has been calculated on the basis of the new principles.

Under the previous accounting policies, consolidated profits for 2001/02 were DKK 1,161 million.