In 2025, Arla Group’s total revenue reached a record EUR 15.1 billion, driven by a record milk intake of 14.3 billion kg, high commodity prices in the first half of the year, and exceptional growth in the ingredients business.

The company achieved a net profit of EUR 415 million and a competitive performance price of 56.4 EUR-cent/kg. This combined with our robust financial position allows the Arla Board of Directors to propose a supplementary payment of 2.2 EUR-cent/kg milk to farmer owners.

Commented Peder Tuborgh, CEO: “Our historic performance demonstrates that our strategy is working. We have strengthened our market position, delivered record value for our farmer owners, and taken important steps toward a more sustainable future.”

However, the result was achieved against a backdrop of two very different market realities. While the year began with a strong demand and a balanced supply, the landscape shifted dramatically in the second half. Exceptional weather conditions and strong feed harvests across Europe triggered a rapid surge in milk volumes.

Added Jan Toft Nørgaard, Chair: “I am pleased we can propose a solid supplementary payment after a year that demanded immense agility from our owners. We shifted from tight supply of milk to a sudden abundance, which naturally creates pressure on the market. As a farmer, it gives me confidence to see our cooperative navigate this volatility and once again prove its worth as a strong, competitive home for our milk.”

Towards the second half of 2025, milk supply increased significantly across Europe including key Arla markets like the UK and Denmark (7.7 % and 3.6 % for 2025 compared to 2024, respectively). This sudden abundance, one of the sharpest uplifts in recent years, triggered a classic shift in market dynamics. The surplus supply forced global trading prices down, putting immediate pressure on the general value of milk across the industry.

Despite this pressure, Arla’s strong business mix ensured stability in the full-year performance. By leveraging a high-performing ingredients business, strong positions in retail and foodservice, and delivering higher than expected efficiency gains of 158 million, the cooperative successfully navigated the drop in global market prices.

Continued Tubogh: “It is in volatile times like these that our strategy truly proves its worth. We are seeing a natural market cycle where high milk production brings prices down across the sector. While the abrupt increase creates challenges, our business stands on strong pillars. The combination of our brands, our efficiency, and a standout year for our ingredients business has allowed us to deliver a competitive result for our owners.” 

A key factor in the year’s strong result was the exceptional performance of Arla Foods Ingredients (AFI). The subsidiary delivered a revenue increase of 43.1 % EUR 1,452 million, driven by strong global demand for value-added protein and the successful integration of the newly acquired Whey Nutrition business from Volac (now AFI Felinfach).

Looking ahead, Arla anticipates that the volatile market conditions from late 2025 will persist into the new year. The supply surge seen in the fourth quarter is expected to continue impacting the market in early 2026, putting pressure on global dairy price levels. However, Arla anticipates a partial normalisation later in the year as supply and demand dynamics adjust.

While lower price levels will impact total revenue, they are also expected to support consumer purchasing power. Consequently, Arla forecasts a return to stronger growth for its strategic brands, with branded volume-driven revenue growth expected in the range of 1.0 to 3.0 %.

Group revenue for 2026 is expected to be in the range of EUR 13.3-14.1 billion, reflecting the lower market prices compared to the highs of early 2025. Net profit share is expected to remain within the target range of 2.8 to 3.2 %.

Concluded Tuborgh: “We enter 2026 fully prepared for the market conditions ahead. The pressure from high milk volumes will characterise the first part of the year, but we also see the opportunities this brings. As prices adjust, we expect consumers to return to the dairy aisle with renewed strength, driving growth for our strategic brands. We are ready to capture that demand while maintaining a strict focus on efficiency to ensure we deliver on our targets.”  For more visit arla.com