Arla Foods Reports Profit in H1

Arla Foods amba, a producer of milk butter, cheese, yogurt, cream and juice, has reported net profit of GBP50.63 million for the first half of 2008.

The company has said it is operating in a challenging environment with a number of factors impacting earnings. The cancellation of EU export subsidies in the first half of 2007 resulted in the company losing revenues, coupled with foreign exchange rates falling below those for the same period of 2007.

According to the company, in the Middle East consumers are uncertain about Danish products and this remains a concern and rising cost inflation and higher energy prices continue to put pressure on earnings for both Arla and its farmers.

Peder Tuborgh, CEO of Arla Foods amba, said: “We anticipate that 2008 will be more profitable than 2007, however the market will be more volatile with frequent price variations, partly due to the elimination of the EU’s regulatory mechanisms. The pressure on prices will be maintained during the second half of the year.”