Parent company Management Review Under section 149 of the Danish Financial Statements Act, the consolidated financial statements of Arla Foods (also referred to as the ‘Group’) represent an extract of Arla’s complete annual report. This annual report of the parent company is an integrated part of the full annual report, which contains the statement from the Board of Directors and the Executive Board as well as the independent auditor’s report. These parent company financial statements show the financial position, the result and the cash flow of Arla Foods amba on a non-consolidated basis for the financial year 1 January to 31 December 2017. Principal activities Arla Foods amba conducts dairy activities in Denmark and purchases milk from the company’s farmer owners in seven member countries. Milk collected outside of Denmark is resold to foreign subsidiaries in the Group. This structure ensures that all owners receive milk payments according to common guidelines and exercise influence according to the owner democracy, including elections of the Board of Representatives and the Board of Directors, in accordance with the Articles of Association and merger agreements. Arla Foods amba operates as the head office for the Group, in addition to conducting its primary dairy activities. Performance Market milk prices improved throughout 2017 and the Group succeeded in closing the year with the highest milk price to farmer owners in three years. As a consequence, revenue and production costs in Arla Foods amba increased. Revenue increased by 16.5 per cent to EUR 7,709 million, compared to EUR 6,620 million last year. The development was driven primarily by increased prices to external- as well as group-internal customers. Gross profit amounted to EUR 899 million, which is at the same level as last year. Profit for the year increased to EUR 188 million, compared to EUR 70 million last year. The improved profit was due to increased dividends distributed from subsidiaries in 2017, which amounted to EUR 97 million, versus EUR 44 million last year, as well as a gain of EUR 44 million from the disposal of Arla Foods amba’s investment in Vigor Alimentos S.A. The investment was previously classified as an associated company. Investments in subsidiaries were impaired by EUR 185 million, compared to EUR 162 million last year. Content 01 Management Review Primary Financial Statements 02Income statement 03 Comprehensive income 04 Balance sheet 05 Changes in equity 06 Cash flow Notes 07Note 1 Revenue and operational cost 09Note 2 Net working capital 10Note 3 Capital employed 12 Note 4 Funding 16Note 5 Other areas including general accounting policies
Download PDF file