Arla Foods Annual Report 2020
Management Review Our Strategy Our Brands and Commercial Segments Our Responsibility Our Governance
Our Performance Review
Our Consolidated Financial Statements
Our Consolidated Environmental, Social and Governance Data
CREATING EFFICIENCIES
WITH CALCIUM PROGRAMME (alcium
In 2018, we launched our transformation and efficiency programme, Calcium,
to accelerate Arla's strategy by transforming the way we work, spend and invest.
In 2020, Calcium continued to create efficiencies and release money to reinvest
in our growth. In total, the programme has now delivered EUR 354 million in
savings.
130
EURm saved in 2020
Target 2020: 75-100 EURm
Continued savings during Covid-19
We have come a long way on our Calcium journey
and continue to deliver savings at a good pace.
Meanwhile, we have delivered branded growth and
made investments for the future, Calcium is now a
more integrated part of our business. Despite the
extraordinary circumstances in 2020, the Calcium
programme exceeded our expectations and
delivered EUR 130 million in savings primarily from
supply chain efficiencies, optimised marketing spend
and reduced expenses due to many office employees
working from home. In three years, the programme
has created EUR 354 million in total savings, and we
are on course to achieve the 2021 target of EUR 400
million. The net effect on our cost base was lower due
to reinvestment and in-year non-recurring items*.
400
EURM
(Full programme target 2021)
354
EURM
2020
December
RESILIENT AND EFFICIENT
SUPPLY CHAIN
During 2020, our supply chain proved
to be very resilient and at the same time
efficient in the way we operate. Despite the
volatile environment caused by Covid-19,
our supply chain delivered all time high net
productivity and thereby also strong
Calcium savings. Given the flexibility, agility
and strong collaboration throughout the
organisation, we managed to maintain high
service levels to our customers, while
safeguarding our employees.
EMBRACING DIGITAL TOOLS
AND NEW WAYS OF WORKING
Covid-19 pushed us to more virtual and
remote ways of working. We successfully
embraced the new tools and digital ways
of working across countries, locations, and
teams. Across our Calcium work streams,
we quickly adapted to the new virtual
ways of working and held multiple online
training sessions events,
and multi-site boosts
with good results.
224
EURM
2019
December
114
EURm
2018
December
16 ARLA FOODS ANNUAL REPORT 2020
*For further information go to note 1.2 on page 76.View entire presentation