The board of directors proposes to pay the full net profit for 2018 to dairy farmers in March 2019. The amount is estimated at SEK 3 billion.
The board of directors proposes to pay the full net profit for 2018 to dairy farmers in March 2019. The amount is estimated at SEK 3 billion.
Arla chooses to support the owners, dairy farmers, because of the difficult situation after the summer drought. The Board of Directors of Arla has approved a proposal for the highest decision-making body of the Group, the Supervisory Board: to pay the full net profit for 2018 when the annual result is approved early next year.
"As a farm-based company, we are committed to the situation of farmers and we are aware that the drought of summer in Europe is extraordinary, which is why we propose an extraordinary measure." The Board welcomes the positive development of the balance of the company, making this proposal possible, according to Arla Chairman of the Board of Management Jan Toft Nørgaard.
Extra paid in March
Arla estimates that the net profit will be in the range of EUR 285-310 million, which is currently SEK 3 to 3.4 billion. These figures in turn correspond to 2.3-2.5 cents per kilogram of milk or 25-27 cents per kilogram of milk.
The amount of the payment also depends on the fact that there are no major changes to the profit or loss or financial outlook at the end of the year. If the proposal is approved, the Arla dairy farmers can expect an extra large amount if the supplementary payment is paid in March 2019.
Arla abolishes its consolidation policy temporarily, which means that about one third of the company's money is paid out to members, a third goes to the so-called individual consolidation and the last third is a common capital that is not recovered when a member ends . The proposal of the Board of Directors means that Arla will return to the consolidation policy for the financial years 2019 and 2020.
When the goals of the year
In her half-yearly report, Arla increased its revenue to EUR 5.1 billion, an increase of around two percent compared to the same period last year. The production costs increased by about three percent at the same time.
With a more stable outlook for the remainder of 2018, Arla expects to reach its full-year target for net profit and brand growth, and to exceed their expectations of cost savings. via the savings program of the company Calcium.
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