Arla Foods Receives BBB Credit Rating with Stable Outlook from S&P

Arla Foods has been assigned a BBB long term issuer credit rating with a stable outlook by Standard & Poor’s (S&P). This marks an important milestone as the company’s first public credit rating and shows the financial robustness of the European dairy cooperative.

The rating proves Arla’s investment grade status and demonstrates the company’s strong financial profile, resilient business model, and disciplined risk management. It underscores the strength of Arla’s strategy and its consistent performance in a competitive and dynamic market environment.

Torben Dahl Nyholm, Chief Financial Officer at Arla Foods, commented:

“The rating recognises the financial strength of our cooperative and the robustness of our long term strategy. It supports our continued focus on value creation, operational excellence, and investing in the future of dairy for the benefit of our 7,200 farmer owners.”

He adds that the rating provides customers and suppliers with additional confidence in partnering with a farmer owned dairy cooperative built on long term thinking and financial discipline as well as reassurance for current and future farmer owners that Arla Foods is a safe and attractive home for their milk.

In the assessment, S&P highlights several elements including:

• Arla’s solid financial metrics such as its strong EBITDA margin and low leverage ratio
• The company’s robust business quality as demonstrated by its diversified product portfolio
• Prudent financial policies

The stable outlook reflects S&P’s expectation that Arla will withstand market fluctuations, maintain profitability, and uphold its investment-grade credit rating over the medium term.