Arla today (Aug 27) announced the delivery of one of the strongest half-year performances for the cooperative to date, as normalising prices lifted demand for its brands and appetite for protein continued to grow.
The period also saw Arla complete its merger with DMK, marking the start of a new chapter for the cooperative.
Arla Foods delivered a strong first half of 2026, as healthy global demand for nutritious dairy and a marked recovery across its strategic brands drove branded volume-driven revenue growth of 6.7 percent, a sharp turnaround from the same period last year. Group revenue reached £6.52 billion (EUR 7.6 billion), while net profit rose to £182 million (EUR 213 million), up from £ 158 million (EUR 158 million) in the first half of 2025.
The result was powered by renewed consumer demand as prices normalised across markets, alongside accelerating worldwide appetite for dairy protein. Strategic brands grew across regions, with particularly strong momentum in protein and sports nutrition.
The strong result has enabled the Arla Board of Directors to approve a half-year supplementary payment of 1 EUR-cent/kg of milk delivered to farmer owners.
“We have entered 2026 in formidable shape. Demand for nutritious dairy is healthy across the world, our brands have more than recovered, and consumers are responding to better value with real enthusiasm. This is the cooperative performing at its best, turning strong consumer demand into real growth for our brands,” says Peder Tuborgh, CEO of Arla Foods.
Brands return to strong growth as demand strengthens
Strategic branded volume-driven revenue growth reached 6.7 percent, a significant turnaround from the same period last year, with growth broad-based across markets and categories.
The Arla brand returned to growth of 6.5 percent, while Castello delivered 4.0 percent and Lurpak rebounded to 5.2 percent, both recovering strongly from a year earlier. Puck continued its momentum with 9.9 percent growth, and Starbucks® chilled coffee added a further 8.0 percent on top of an already strong prior year.
Underpinning the recovery was a global appetite for high-quality, nutritious products, with demand strongest in protein and sports nutrition, an area where dairy protein holds a natural advantage. Arla Skyr grew 39.6 percent and Arla Protein grew 34.4 percent, while the cooperative's ingredients business, Arla Foods Ingredients (AFI), delivered revenue growth of 19.3 percent, supported by favourable market conditions and robust demand across key segments.
This growing appetite for nutritious, protein-rich food is a structural shift that supports long-term growth opportunities for dairy and for Arla's brand portfolio.