Arla Foods (ARLA) H1 2025 earnings summary

Executive summary

• Celebrated 25th anniversary and approved a strategic merger with DMK Group, pending regulatory review expected to conclude in H1 2026.

• Delivered solid financial performance amid market volatility, maintaining competitive milk prices and advancing sustainability initiatives.

• Expanded FarmAhead™ sustainability program and made significant investments in production capacity and innovation.

Financial highlights

• Revenue rose 13% year-over-year to EUR 7.5 billion in H1 2025, driven by higher commodity and commercial dairy prices.

• Net profit was EUR 158 million (2.1% of revenue), down from EUR 167 million (2.5%) in H1 2024.

• Performance price increased 21% to 57.5 EUR-cent/kg, supporting competitive milk payments.

• Strategic branded volume-driven revenue declined 1.5% year-over-year, mainly due to Europe.

• EBITDA reached EUR 540 million, up 5% from H1 2024.

Outlook and guidance

• Full-year revenue forecast raised to EUR 14.7–15.2 billion, with profit share expected at the lower end of the 2.8–3.2% target range.

• Branded volume-driven revenue growth outlook improved to -0.5% to 0.5% for 2025.

• Leverage expected to end the year at 2.9–3.3, maintaining a robust financial position.

• Continued focus on efficiency savings and further reductions in scope 1, 2, and 3 emissions.