ARLA FOODS LIMITED

Company number: 02143253

Reporting period:
1 January 2023 to 30 June 2023

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This report was filed on 19 July 2023

and approved by Louis Rutter

Payment statistics

Average time taken to pay invoices: 54 days

Invoices paid:

• within 30 days: 26%
• in 31 to 60 days: 46%
• in 61 days or more: 28%

Invoices due but not paid within agreed terms: 58%

Payment terms

Shortest standard payment periods

60 days

Longest standard payment period

Answer not provided

Standard payment terms

Arla Foods Ltd standard payment terms are 60 days for suppliers with signed contracts. Due dates are calculated by applying agreed terms to the latter of a valid invoice presented or goods receipt date. All invoices are paid on our calculated due date. If an invoice falls due during a weekend or holiday, the payment transaction is executed on the following business day. The report contains results for both internal and external suppliers. Please find our payment policy on https://www.arla.com/legal-information/payment-policy/

Were there any changes to the standard payment terms in the reporting period?

Answer not provided

Were suppliers notified or consulted about these changes before they were made?

N/A

Maximum contractual payment period agreed

180 days

The longest payment terms are offered to supply chain finance suppliers. However, there is an agreement that their invoices will be uploaded to the SCF platform within 10 days.

Any other information about payment terms

Invoices due but not paid within agreed terms: - if transfer time ignored for all suppliers(2 days for GBP, 1 day for other currencies) - 32% vs 28% H2 2022, - if weekends & holidays are excluded - 16% vs 12% H2 2022. 58% of invoices due but not paid within agreed terms were calculated including weekends for suppliers with signed agreements due to review of our contractual terms.

Dispute resolution process

In case of any disputes related to payment terms, a supplier can contact S2P Department at: AP.UK@arlafoods.com or write to Arla Foods Ltd, 4 Savannah Way Leeds Valley Park, Leeds, LS10 1AB or call: 0 113 3827 202

Other payment information

Has this business signed up to a code of conduct or standards on payment practices? If so, which?

For example, signatories to The Prompt Payment Code must commit to paying 95% of their invoices within 60 days.

No, this business has not signed up to a code of conduct or standards on payment practices.

Does this business offer e-invoicing in relation to qualifying contracts?

This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.

Yes

Does this business offer supply chain finance?

This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.

Yes

Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?

No

During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?

No