Arla Foods Consolidated Annual Report 2021
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Arla Foods Consolidated Annual Report 2021 / Glossary
GLOSSARY / CONTINUED
Contents
III
Leverage is the ratio of net interest-bearing debt,
inclusive of pension liabilities, to EBITDA. It enables
evaluation of the ability to support future debt and
obligations; the long-term target range for leverage
is between 2.8 and 3.4.
MENA is an acronym referring to the Middle East
and North Africa.
Meal kits are a subscription service-foodservice
business model where a company sends customers
pre-portioned and sometimes partially prepared
food ingredients and recipes to prepare homecooked
meals.
Milk volume is defined as total intake of raw milk
in kg from owners and contractors.
M&A is an abbreviation of mergers and
acquisitions.
Net interest-bearing debt is defined as current
and non-current interest-bearing liabilities less
securities, cash and cash equivalents, and other
interest-bearing assets.
Net interest-bearing debt inclusive of
pension liabilities is defined as current and
non-current interest-bearing liabilities less
securities, cash and cash equivalents, and other
interest-bearing assets plus pension liabilities.
Net working capital is the capital tied up in
inventories, receivables and payables including
payables for owner milk.
Net working capital excluding owner milk is
defined as capital that is tied up in inventories,
receivables and payables excluding payables for
owner milk.
Non-GMO means non-genetically modified
organisms, for example non-genetically modified
feed crops for cows.
OCI is an acronym for other comprehensive
income. OCI includes revenue, expenses, gains, and
losses that have yet to be realised.
OECD refers to the Organisation for Economic
Cooperation and Development.
On-the-go refers to food consumed while on the
go, and also to packaging solutions supporting this
food consumption trend.
Other supported brands are brands other than
Arla®, LurpakⓇ, PuckⓇ, CastelloⓇ and milk-based
branded beverages that contribute to strategic
branded volume driven revenue growth.
Performance price for Arla Foods is defined as
the prepaid milk price plus net profit divided by
total member milk volume intake. It measures the
value creation per kg of owner milk including
retained earnings and supplementary payments.
Prepaid milk price describes the cash payment
farmers receive per kg of milk delivered during the
settlement period.
Private label refers to retail brands, which are
owned by retailers but produced by Arla based on
contract manufacturing agreements.
Profit margin is a measure of profitability. It is the
amount by which revenue from sales exceeds
costs in a business.
Profit share is defined as the ratio of profit for the
period allocated to owners of Arla Foods, to total
revenue.
QEHS stands for Quality, Environmental, Health,
and Safety. It is a department within Arla's supply
chain safeguarding the quality and safety of
production.
SEA is an acronym referring to South-East Asia.
SMP is an abbreviation of skimmed milk powder.
Strategic brands are defined as products sold
under branded products such as Arla®, LurpakⓇ,
CastelloⓇ and PuckⓇ.
Strategic branded volume driven revenue
growth is defined as revenue growth associated
with growth in volumes from strategic branded
products while keeping prices constant. It is also
referred to in the report as branded volume growth.
USD-related currencies are currencies which
move in the same direction as the USD (i.e. when
the USD depreciates versus the EUR, they also
depreciate versus the EUR). Currencies in the
MENA region and the Chinese yen are typical
examples.
Value-added protein segment contains products
with special functionality and compounds,
compared to standard protein concentrates with
a protein content of approximately 80 per cent.
Volume driven revenue growth is defined as
revenue growth associated with growth in volumes
while keeping prices constant.
Whey protein hydrolysate is a concentrate or
isolate in which some of the amino bonds have
been broken by exposure of the proteins to heat,
acids or enzymes. This pre-digestion means that
hydrolysed proteins are more rapidly absorbed in
the gut than either whey concentrates or isolates.
WMP is an abbreviation referring to whole milk
powder.
Project management: Corporate external reporting, Arla. Design and production: We Love People. Translation: Semantix.
Photos: Kristian Holm, Jens Bangsbo, Hans-Henrik Hoeg and Arla. The Annual Report is published in English, Danish, Swedish, German,
French and Dutch. Only the original English text is legally binding. The translations have been prepared for practical purposes.View entire presentation