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
GOOD GROWTH 2020 STRATEGY
IMPROVED THE QUALITY OF BUSINESS
Structural shift in business
(percentage of revenue)
55%
37% Private label
14% Global Industry Sales
4% Other
44%
30% Private label
13% Global Industry Sales
1% Other
Calcium savings
Target 2021: 400 EURM
56%
45%
40% Brand
5%AFI
Strategic
focus
+11%p
49% Brand share
7% AFI
114
EURM
2014
2020
110
EURM
Total CO₂e emissions
400
mkg
EURM
22
130
EURM
22
354
EURM
2018
2019
2020 2018-2020 2021
status
2021
target
21
22
20
19
2015
2016
2017
2018
2019
2020
A STRONGER ARLA FOODS
The Good Growth 2020 strategy has successfully improved the
quality of our business. The main value driver has been a shift of
volumes from private label and global industry sales to branded
products in our retail business and value added products in Arla
Foods Ingredients. This effect has been strengthened further
through acquisitions in Bahrain and the UK, as well the extension of
our strategic cooperation with Starbucks. This structural shift of
11 percentage points has markedly contributed to improving the
overall value creation of the company. We have furthermore
strengthened our international footprint, increasing the international
share by 7 percentage points, and thereby our position in high
growth areas.
GLOBAL TRANSFORMATION JOURNEY
The strategy delivered results above our expectations despite
unprecedented external impacts on the way, including depreciation
in currencies, especially GBP and SEK, export sanctions on European
products in Russia, less owner milk intake than anticipated, and not
least the unstable fat and protein prices.
As a response to the unforeseen external impacts on our business,
we launched our savings and efficiency programme, Calcium, in 2018.
The programme contributed to delivering considerable savings,
improving our cost structure and strengthening our future
competitiveness, which is expressed in our performance price.
COMMITTING TO A SUSTAINABLE FUTURE
Arla is committed to being a part of the solution to the world's most
pressing issues. In 2019, we launched our new sustainability strategy
Stronger Planet - Stronger People, which focuses on improving the
environment for future generations, increasing access to healthy dairy
nutrition, and inspiring good food habits.
To accelerate our environmental ambitions we set the target to
reduce greenhouse gas emissions by 30 per cent over the next
decade, and to work towards becoming carbon net zero by 2050.
We already made good progress reducing our scope 1 and 2 CO₂e
emissions related to operations by 24 per cent compared to 2015.
15 ARLA FOODS ANNUAL REPORT 2020View entire presentation