Arla Foods (ARLA) H1 2026 earnings summary

Executive summary

• Delivered one of the strongest half-year performances in recent years, with brands returning to solid growth and the completion of the merger with DMK on 1 June 2026, marking a new era for the cooperative.

• Strategic branded volume-driven revenue growth reached 6.7% year-over-year, reversing the decline from the prior year.

• Net profit rose to EUR 213 million, up from EUR 158 million in H1 2025, with a profit share of 2.8% of revenue.

• The merger with DMK brings together 11,200 farmers and 28,800 employees, creating Europe's leading farmer-owned dairy cooperative.

Financial highlights

• Revenue increased by 1.8% to EUR 7,593 million compared to H1 2025, with DMK contributing EUR 409 million for June.

• EBITDA rose 25% to EUR 675 million, and EBIT increased 19% to EUR 335 million year-over-year.

• Performance price decreased to 43.6 EUR-cent/kg from 57.5 EUR-cent/kg in H1 2025 due to lower commodity prices.

• Net efficiencies delivered EUR 63 million in savings, mainly from supply chain improvements.

• Cash flow from operating activities increased to EUR 415 million, up from EUR 158 million in H1 2025.

Outlook and guidance

• Full-year branded volume-driven revenue growth (excluding DMK) is now expected at 4.0–6.0%.

• Full-year revenue outlook revised upwards to EUR 16.8–17.6 billion, with profit share expected to remain at 2.8–3.2%.

• Efficiency programme 'Fund our Future' projected to deliver EUR 100–120 million in net savings for 2026.

• Leverage ratio outlook improved to 2.8–3.2.

• Continued commitment to 2030 emissions reduction targets, with sustainability reporting for 2026 covering Arla standalone operations.