Arla Foods Consolidated Annual Report 2021
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Arla Foods Consolidated Annual Report 2021 / Consolidated Financial Statements / Notes
Revenue and costs
1.1 REVENUE
REVENUE INCREASE DRIVEN BY PRICES
Revenue increased by 5.2 per cent to EUR 11,202
million, compared to EUR 10,644 million last year.
The increase reflects general price increases and more
retail sales of branded volumes both in Europe and
internationally. Volume growth in food service and
commodity price increases in Global Industry Sales also
contributed to the revenue development.
Strategic branded sales volumes grew by 4.5 per cent,
compared to 7.7 per cent last year, driven by the Arla®
brand and milk-based beverages and other supported
brands.
Europe is Arla's largest commercial segment,
comprising 59.1 per cent of total revenue, compared to
60.2 per cent last year. Revenue in Europe increased to
EUR 6,621 million compared to EUR 6,413 last year.
The increase was driven by higher prices and stable
volumes. The strategic branded revenue in Europe grew
by 5.8 per cent despite volatility in the market. Branded
sales accounted for 55.3 per cent of revenue compared
to 53.0 per cent last year.
The International segment accounted for 18.8 per cent
of total revenue, compared to 18.6 per cent last year.
The share of branded sales was 86.0 per cent in
International, consistent with last year.
The revenue in International increased to EUR 2,101
million, compared to EUR 1,975 million last year, driven
by prices and generally increased volumes, partly offset
by foreign exchange movements in the US dollar.
Arla Foods Ingredients comprised 7.1 per cent of total
revenue, compared to 6.7 per cent last year. Revenue
increased to EUR 793 million compared to EUR 716
million last year. The increase was due to sales of
value-added products within the ingredients segment.
Global Industry Sales and other segments represented
15.0 per cent of total revenue and increased by 9.5 per
cent to EUR 1,687 million compared to EUR 1,541
million last year. The increase was due to increased
commodity prices during the year.
Revenue was positively impacted by foreign exchange
rate movements of EUR 54 million, primarily driven by
SEK and GBP.
Development in revenue
(EURM)
11,500
11,200
10,900
10,644
10,600
10,300
10,000
2020
Selling prices
54
11,202
72
432
Volume/mix
Currency
Revenue split by commercial segment,
2021
Revenue split by commercial segment,
2020
11,202
MILLION EUR
10,644
MILLION EUR
Europe 59%
International 19%
Arla Foods Ingredients 7%
Global Industry Sales and other sales 15%
Europe 60%
International 19%
Arla Foods Ingredients 7%
Global Industry Sales and other sales 14%
2021
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