Arla Foods (ARLA) H2 2025 earnings summary

Executive summary

• Delivered robust performance amid volatile global dairy markets, with revenue up 9.4% to EUR 15.1 billion year-over-year, driven by strong brand positions and growth in protein and sports nutrition segments.

• Performance price increased 10.8% to 56.4 EUR-cent/kg, reflecting higher value from owner milk, but commodity price declines in H2 pressured margins.

• Efficiency program delivered EUR 158 million in savings, the highest to date, supporting profitability.

• Sustainability progress included a 5.6% reduction in scope 1+2 emissions and a 0.4% reduction in emissions intensity per kg of milk.

Financial highlights

• Revenue rose 9.4% to EUR 15,066 million compared to 2024.

• EBITDA increased to EUR 1,156 million (2024: EUR 1,109 million); EBIT reached EUR 647 million (2024: EUR 598 million).

• Net profit was EUR 415 million, representing 2.8% of revenue, within the target range.

• Leverage ratio at 3.3, within the 2.8–3.4 target range.

• Cash flow from operating activities improved to EUR 862 million.

• Total investments reached EUR 731 million, supporting capacity and innovation.

Outlook and guidance

• 2026 revenue expected at EUR 13.3–14.1 billion, reflecting lower price levels but anticipated volume growth of 1.0–3.0%.

• Profit share guidance maintained at 2.8–3.2% of revenue.

• Efficiency program targets EUR 90–110 million in net savings.

• Supply pressure from late 2025 to persist into H1 2026, but lower prices expected to stimulate branded volume growth.

• Guidance does not include the potential DMK Group merger, pending regulatory approval.