Arla Foods amba Due Diligence

Run due diligence on Arla Foods amba: check compliance and get alerts when suppliers or ownership change.

Denmark · owned by Independent (Denmark) · arla.com · 36 vendors

Arla Foods is a global dairy cooperative owned by dairy farmers who produce most of their milk. The company focuses on sustainable dairy production, climate action, and produces various dairy products including milk, cheese, yogurt, and butter with brands like Lurpak and Castello.

Resilience scores

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Last updated 2026-09-13 · revision 12

36 direct vendors, 285 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Compliance

13 in-scope frameworks identified; showing 3.

ISAE 3000 (source) — No public evidence

Evidence: https://www.arla.com/sustainability/, https://www.arla.com/company/investor/annual-reports/, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32022L2464

ISO 27001 (source) — No public evidence

Evidence: https://www.arla.com/company/, https://www.iso.org/isoiec-27001-information-security.html

CSRD (source) — No public evidence

Evidence: https://www.arla.com/sustainability/arlas-climate-ambition/, https://www.arla.com/company/investor/annual-reports/, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32022L2464

Financials

Three-year financials

Financial Resilience Score: 8/10

Arla Foods demonstrates strong financial resilience anchored by its cooperative structure with 7,600+ committed farmer owners, providing highly stable raw-milk supply and long-term capital via retained individual capital accounts. Revenue has been remarkably stable at EUR 13.7-13.8 bn from 2022-2024, then jumped to a record ~EUR 15.1 bn in 2025, driven by high commodity prices, record milk intake, and strong Arla Foods Ingredients growth (+43.1% after Volac acquisition). Net profit remained consistent at EUR 399-417 m over the past three years, reflecting the cooperative's intentional profit share target of 2.8-3.2%. The company maintains robust liquidity with EUR 1,538 m reserves at year-end 2024, an investment-grade credit profile, and diversified funding via bonds, Schuldschein, mortgage credit, bank facilities and commercial paper with an average debt maturity of 3.9 years. Leverage rose to 3.2 in 2024 (from 2.6) due to the Volac acquisition and working-capital build, but remains within the target band of 2.8-3.4. Diversification across four segments (Europe 59%, International 18%, AFI 7%, Global Industry Sales 16%) and 164 countries provides revenue resilience, while efficiency programs delivered EUR 131 m (2024) and EUR 158 m (2025) in net savings. Key risks include commodity price volatility (butterfat +40% in 2024, milk price drops in H2 2025), regulatory pressures (Danish CO₂ tax, EU Nature Restoration Law), currency exposure (GBP, SEK, NGN, BDT, ARS with material devaluations in Nigeria/Bangladesh), geopolitical instability affecting Middle East operations, and execution risk on the pending DMK Group merger completing June 2026.

Key strengths: Cooperative structure with 7,600+ farmer owners providing stable milk supply and long-term capital, Strong diversified brand portfolio (Arla®, Lurpak®, Puck®, Castello®, Starbucks™) generating EUR 6,589 m branded revenue in 2024, Geographic diversification across 164 countries with balanced segment mix, Robust liquidity of EUR 1,538 m and investment-grade credit profile, High-growth Arla Foods Ingredients segment (+43.1% in 2025) providing value-added margin, Delivered EUR 131 m (2024) and EUR 158 m (2025) in efficiency savings via Fund our Future program, Record 2025 revenue of ~EUR 15.1 bn and performance price of 56.4 EUR-cent/kg, Strong sustainability leadership with SBTi-approved targets and Scope 1+2 emissions -43.6% by 2025

Risk factors: Commodity and dairy price volatility (butterfat +40% in 2024, H2 2025 milk-supply surge pressured margins), Regulatory risks: Danish CO₂ tax on agricultural methane/N₂O, EU Nature Restoration Law, potential EU ETS extensions, Currency exposure with material devaluations in Nigeria (NGN) and Bangladesh (BDT) reducing 2024 International revenue, Geopolitical instability affecting Middle East Starbucks™ and Puck® volumes, Consumer shifts toward plant-based alternatives and greenwashing reputational risks, Execution risk on DMK Group merger requiring regulatory approvals in H1 2026, Pension exposure in UK and Sweden (net EUR 155 m liability at end-2024), Leverage rose to 3.2 in 2024 (from 2.6), near upper end of 2.8-3.4 target band

Revenue by geography

Revenue by product/service

Workforce by country

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