Fall in Arla Foods’ earnings
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- 26 November 2004
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Arla Foods’ recorded consolidated profits of DKK 1,019 billion for 2003/04, i.e. a fall on the result for 2002/03 which was DKK 1,094 billion.
Owing to the merger with Express Dairies in the UK, turnover rose by 15% from DKK 41 billion to DKK 47 billion.
The total consolidated profit of DKK 1,019 billion is below last year’s result, but in keeping with the forecast from April 2004.
Åke Modig, Arla Foods’ Managing Director commented:
“The result for the last half year was particularly affected, and we expect the trend to continue into the new financial year. However, although we anticipate seeing a stable global market, because of falling export subsidies and exchange rates, it will be difficult to secure any benefits from this.”
The year’s result corresponds to a milk price in Denmark of 239.06 Danish øre and in Sweden of 293.68 Swedish øre. For the Danish co-operative members, this represents a fall of 17.38 Danish øre compared to 256.44 øre in 2002/03.
Chairman of Arla Foods, Knud Erik Jensen, said:
“The result is due to the effects of the sweeping reform of the EU’s agricultural policy, lower prices generally and the low dollar rate. We would, of course, have preferred to deliver a stronger result, but if we compare ourselves with other international companies, we must accept that this is the current level.”
Arla Foods is an international dairy company owned by 9,700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.