Arla Foods, the Danish dairy processor, has reported net profits of €295m for its 2015 financial year, a decline of almost 8% compared with 2014.

Arla said the fall in profits had been expected after its decision to support farmer suppliers through a prepaid milk price scheme and to reduce its profit margin from 3% to a range between 2.7% and 3%.

Revenues

Arla’s revenues for the year were back more than 3% to €10.3bn, despite higher sales volumes and increased market share in its core European markets. The group’s milk collection for the year increased by 6% to almost 13.8bn litres.