Denmark’s Arla, one of the world’s leading dairy producers known for Lurpak butter and Castello cheese, raised its full-year revenue forecast on Wednesday, despite a decline in first-half revenue. Arla anticipates rising prices due to a shift in supply and demand dynamics.
The first half of 2024 saw a global reduction in milk production, leading to increased dairy prices in commodities, retail, and foodservice sectors, noted Arla CEO Peder Tuborgh. He expects a positive trend in consumer purchasing power in Europe, as inflation decreases and wages rise.
Despite a 6% revenue drop to 6.6 billion euros in the January-June period, Arla now forecasts full-year revenue between 13.4 billion and 13.9 billion euros, citing higher prices and volume expectations.
(With inputs from agencies.)
