Arla Foods Consolidated Annual Report 2021
45
Arla Foods Consolidated Annual Report 2021 / Performance Review / Financial outlook
FINANCIAL OUTLOOK
Our outlook for 2022
We expect inflation and volatility in the market to
continue to impact our business well into 2022.
Changes in consumer behaviours will be multifaceted
and difficult to predict. We expect to see a slow-
down in branded growth due to potential reduced
buying power of consumers and normalisation of
trends from Covid-19. Therefore, our guidance for
branded volume growth is 0-2.5 per cent for 2022,
with likely a slower start of the year. We expect
revenue in the range of EUR 11.8-12.4 billion, the
increase primarily driven by increased sales prices
reflecting the historically high commodity prices.
Our new efficiency programme, Fund our Future is
expected to deliver savings in the range of EUR
70-100 million, driven by the successful initiatives
started during Calcium, supported by the new
digitalization and automation projects launched in
Fund our Future. For leverage, we lower our
outlook to 2.5-2.9, driven by an expected strong
cash flow. We expect our scope 1 and 2 CO₂e
emissions to lower further compared to our 2015
baseline, despite production expansion in our new
powder tower in Pronsfeld and in our international
markets. Our scope 3 emissions per kg of milk and
whey are also expected to reduce in 2022, however
we acknowledge that sustainability projects on
farm yield results with a time lag. These improve-
ments will ensure that our farmers remain amongst
the world's most climate efficient, and move us
forward to reaching our 2030 emission reduction
targets of 63 per cent scope 1 and 2 and 30 per
cent scope 3 per kg of milk and whey.
Strategic branded volume
driven revenue growth
Revenue
(EURb)
Profit share
Leverage
CO₂e emissions scope 1+2
vs. 2015
CO₂e emission scope 3 per kg
milk and whey vs. 2015
OUTLOOK
2021*
ACHIEVEMENTS
IN 2021
OUTLOOK
FOR 2022
3-4%
4.5%
0 -2.5%
10.6 11.0
-
11.2
-
11.8 12.4
2.8-3.2%
3.0%
2.8-3.2%
Calcium/Fund our Future
(EURM)
> 150
155**
70 - 100
< 2.8
2.6
2.5 - 2.9
* As announced at H1 2021.
** Excluding inflation. Targets in our next efficiency programme Fund our future are defined excluding inflation.
-25%
LOWER THAN
LAST YEAR
LOWER THAN
-7%
LAST YEAR
Contents
|||View entire presentation