Finance
Lurpak maker Arla says softer consumer sentiment hits sales of core products
Published by Global Banking and Finance Review
Posted on August 28, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 28, 2025
2 min readLast updated: January 22, 2026
Arla reports a 13% revenue rise but a decline in sales of key products due to consumer sentiment. Global milk production recovery may improve future sales.
COPENHAGEN (Reuters) -Dairy producer Arla's sales for the first half of the year rose by 13% though sales of its key products such as Lurpak butter and Castello cheese fell.
"High commodity prices and geopolitical uncertainty continued to weigh on consumer sentiment, resulting in a modest decline in branded volumes," Arla CEO Peder Tuborgh said in a statement.
Its revenue for the January-June period grew to 7.5 billion euros ($8.78 billion) from 6.6 billion euros last year but the company saw a 1.5% decline in its sales of branded products, which include the Arla brand, Lurpak, Puck, Castello and Starbucks, compared to last year.
Arla said it expected the situation to improve in the second half of the year.
Global milk production has begun to recover from a slump, Arla said, due to factors such as improved weather conditions, contributing to a slight softening of global dairy commodity prices, it added.
Arla, which competes with companies like Danone and Nestle in the dairy industry, is owned by more than 8,000 dairy farmers in Denmark, Sweden, Britain, Germany, Belgium, Luxemburg and the Netherlands.
($1 = 0.8542 euros)
(Reporting by Soren Jeppesen, editing by Terje Solsvik)
Consumer sentiment refers to the overall attitude of consumers towards the economy and their personal financial situation, influencing their purchasing decisions.
Branded products are items that are marketed under a specific name or brand, distinguishing them from generic or unbranded alternatives.
Revenue growth is the increase in a company's sales over a specific period, indicating its ability to expand and generate more income.
Market recovery refers to the process of improvement in economic conditions after a downturn, often characterized by increased production and consumer spending.
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