Arla Foods Full-Year Report 2022

Significant milk price increase driven by commodity prices and firm business execution Arla’s average pre-paid milk price increased to 52.0 EUR-cent/kg in 2022 compared to 37.0 EUR-cent/kg last year, which constitutes a 40.5 per cent increase. Our average performance price, which measures the value Arla adds to each kg of our owner’s milk, was 55.1 EUR-cent/kg, a 38.8 per cent increase compared to 2021 (from 39.7 EUR-cent/kg).

These unprecedented increases were mainly driven by the commodity price rallies and firm execution of price increases across channels to regain margins.

Price increases were necessary to compensate our farmer owners for their soaring production costs and ensure
that they can invest in a sustainable transformation. Our operational costs excluding raw milk also increased, from EUR 5,599 million in 2021 to EUR 6,175 million, driven by inflation in energy prices, ingredients and packaging.
Our transformation and efficiency programme, Fund our Future, also contributed to the performance price, with EUR 101 million net savings.

Revenue growth driven by prices

During 2022, revenue increased by 23 per cent to EUR 13.8 billion compared to EUR 11.2 billion in 2021, with much of the increase occurring in the second half of the year. Revenue growth was almost exclusively driven by increased
prices. Low supply and steady demand drove up while retail price increases were driven by inflation and increased production costs.

Prices contributed positively to the revenue increase by EUR 2,713 million. Slightly decreasing branded volumes
impacted revenue negatively by EUR 281 million, while the effect from currencies contributed positively by EUR
159 million.

Free Trial

Step 1 of 2

Name(Required)

By pressing “Send” you agree to the Privacy Policy of this site

No Credit Card needed, after filling up the form you will receive your Free-Trial login information in 24 to 48 hours by e-mail.

ImprintPrivacy Policy

All Rights Reserved © aicorite.com