UK business greatly exceeds expectations

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05 November 2007
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Although last year was a record year for Arla Foods' UK earnings, the current year is on track for yet another record.

UK earnings for the current financial year are now expected to show an improvement of DKK 300 million on the original forecast.

Since the Supervisory Board's decision to purchase the remaining shares in the UK business, projected earnings for 2008 have risen dramatically - by DKK 600 million compared to pre-acquisition estimates.

"Our history in the UK has been characterised by tough times and the UK business has been a major preoccupation for us - sometimes negatively. But as things stand now, there are no grounds for any further scepticism. The money is there, and the business is developing in a healthy direction," says Arla Foods' CEO Peder Tuborgh.

The upturn is owing to several factors: As elsewhere in global markets, market developments in the UK have enabled Arla Foods UK to raise their prices. Full ownership offers new opportunities for optimally allocating raw materials across the enlarged business, e.g. in the event of surplus cream in the UK and shortages of cream in Denmark and Sweden. New opportunities have arisen from further investments in growth and efficiency, which are expec-ted to begin to materialise by the end of 2008. The integration of the UK into the parent company will also pay off. Synergy effects within IT, pur-chasing, finance and HR will lead to savings. The efforts to bring British farmers closer to Arla Foods will ensure raw material supplies. document.write('See map of the UK Business')

Arla Foods is an international dairy company owned by 9,400 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.

Press contact

Arla Group Press Office
Arla Group Press Office (journalists/media only) +4591310310
Åse Andersson
Åse Andersson Global Head of Media Press contact for Arla Foods Group +45 91 310 310 +45 89 38 10 00
Pernille Bonne Nejsig
Pernille Bonne Nejsig Press and Communication specialist Press contact for Arla Foods Group +45 91311232 +45 89 38 10 00