Arla Foods expects a boost in branded sales by 2025, despite a 1.5% drop in branded revenue in the first half of the year due to higher prices and economic uncertainty. The company reported half-year revenue of €7.5bn, up from €6.6bn in the same period last year.

Geopolitical uncertainty and higher dairy commodity prices have made the market challenging for Arla in 2025. However, the company has revised its forecast for annual growth in branded sales, now expecting a range of 0.5% down to 0.5% up, with improvements anticipated in the second half of the year.

Arla has narrowed its forecast for annual revenue to €14.7bn to €15.2bn, compared to the previous range of €14.5bn to €15.3bn. CFO Torben Dahl Nyholm remains optimistic, expecting an improvement in branded sales volumes in the second half of the year and close to neutral growth for the full year.

In April, Arla announced a merger with German dairy cooperative DMK Group, creating an entity with over 12,000 farmers across seven countries. The plan has been approved by both boards and is set to undergo regulatory review, expected to conclude in the first half of 2026.

Read more at Yahoo Finance: Arla lifts forecast for branded sales