Arla Foods Consolidated Annual Report 2021 slide image

Arla Foods Consolidated Annual Report 2021

40 Arla Foods Consolidated Annual Report 2021 / Performance Review / Performance overview PERFORMANCE OVERVIEW/ CONTINUED Contents III Revenue increase driven by brands and prices Outperforming our guidance, our total revenue amounted to EUR 11.2 billion compared to EUR 10.6 billion in 2020. In 2021, we saw a revenue increase from prices of EUR 432 million, and an increase from growing branded volumes of EUR 72 million, driven by the success of our brands to meet changing consumer needs. Exchange rates had a positive impact of EUR 54 million. See Note 1.1 for further information. Brands successfully built on their exceptional 2020 performance A key pillar of our strategy is improving the overall quality of our revenue by driving our brands to success and thus growing our branded volumes. In 2021, we delivered strategic branded volume driven revenue growth of 4.5 per cent, on top of the exceptionally strong 7.7 per cent growth in 2020. This result shows the great adaptability of our brands. Our natural nutrition-rich products with their clear focus on sustainability, made our brands attractive to consumers in 2021, even as shopping and cooking habits started to return to pre-pandemic patterns. Our biggest brand, Arla® performed above expecta- tions with 4.4 per cent volume growth, driven by Lactofree®, Fill n' Fuel and the Arla® Pro products sold by our food service segment. LurpakⓇcame close to repeating its historical success of 2020 by growing 0.5 per cent on top of last years exceptional growth. StarbucksTM grew volumes at an astonishing 33.8 per cent, and CastelloⓇ at 6.1 per cent. Puck also closed a successful year with 2.7 per cent volume growth. ☑Read more about our brands from page 28 STRONG RESULTS DELIVERED BY OUR COMMERCIAL UNITS Strategic branded volume driven revenue growth, Europe 2.3% 2020: 5.9% Growth of value added products, AFI 14.5% 2020: 5.3% Strategic branded volume driven revenue growth, International 9.1% 2020: 11.6% Share of milk solids sold through global industry sales 22.1% 2020:22.7% BRANDED VOLUME DRIVEN REVENUE GROWTH 4.5% 2020: 7.7% • • Both our Europe and International commercial zones contributed to the solid performance of Arla with their strong branded volume growth of 2.3 and 9.1 per cent, respectively, and increased market shares in key positions. 7 Read more in the report on page 32 Our ingredients business, Arla Foods Ingredients (AFI), further increased its value added share by 14.5 per cent. ☑Read more in the report on page 34 • Due to the increased sales through Arla's retail channels, the overall share of milk solids sold by our Global Industry Sales fell to 22.1 per cent compared to 22.7 per cent last year. ☑ Read more in the report on page 35
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