Saturday 29 September 2012
Dairy giants profits down
Danish head-quartered co-op, Arla, reported a 11% increase in turnover to DKK30bn (€4bn) for the first six months of 2012, but due to depressed international dairy markets operating profits fell by 6% to DKK669m (€90m).
This double digit top line growth reflects both organic growth (2.8%) within core and growth markets and acquisitions completed last year in Germany (Hansa-Milch, Allgauland-Kaserein) and Milko in Sweden.
Earlier this year, Arla signed merger agreements with Milk Link in Britain and MUH in Germany, which, if approved by the respective competition authorities, will create a combined entity processing some 12 billion litres of milk annually.
Arla also invested 1.7 billion Danish Kroner (€228m) in China's leading dairy company, Mengniu Dairy Company Ltd in return for a 6% stake in the business.
This agreement further opens the way for Arla to supply a series of new Arla dairy products into the Chinese market through Mengniu's existing sales channels.
Source: Argentine Beef Packers S.A.
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