Arla currently enjoys 95 percent of the turnover it had before the boycott began, the company said in a statement.
In Saudia Arabia, however, the company’s largest Middle Eastern market, Arla has only managed to reclaim 83 percent of its previous turnover.
Arla’s stated aim was to have made a full recovery by the end of 2007.
“There were positive developments in the second half of 2007,” said regional manager Finn S Hansen.
“So even though we didn’t quite meet our goals, our ambition remains the same,” he added.
The boycott came about as a result of the publication in Danish newspaper Jyllands-Posten of caricature of the Muslim prophet Muhammad.