Orkla reports strong profit improvement

Orkla achieved EBIT (adj.) of NOK 2.0 billion in the second quarter of 2024, up 13% on the same period last year.

“Orkla has successfully maintained its positive momentum from the first to the second quarter of the year. The portfolio companies achieved profit growth, a higher return on capital employed and increased cash flow from operations. We are also continuing to ramp up investment in advertising to secure long-term growth and value creation,” says Orkla President and CEO Nils K. Selte.

Orkla’s consolidated portfolio companies (including Head Office) grew EBIT (adj.) by 19%, to NOK 1.8 billion, in the second quarter of the year. The eight largest companies in Orkla’s portfolio all delivered underlying profit growth. Organic growth totalled 3.3%, and volume growth was positive for the second successive quarter.

Orkla’s profits before tax amounted to NOK 2.6 billion for the quarter, up 43%.

The quarterly earnings per share (adj.) was NOK 1.66, up 7% on the same period last year.

The profit contribution by Jotun in the quarter amounted to NOK 528 million, on a par with the same quarter in 2023. Jotun reported broad-based sales growth in the Marine, Protective and Powder segments, but also some negative currency translation effects.

Hydro Power’s EBIT (adj.) for the second quarter totalled NOK 248 million, compared to NOK 282 million in the corresponding quarter of last year. The drop is attributable to reduced power prices.

Orkla sold 100% of the shares in Lilleborg in June, making a gain of NOK 472 million on the sale.

“The transaction is an important milestone, and consistent with our strategy of simplifying our structure and reducing the number of portfolio companies,” says Nils K. Selte.

Orkla is a leading industrial investment company with focus on brands and consumer-oriented companies. Its investment portfolio currently consists of 11 companies operating in sectors including paint, food products, food ingredients, confectionery and snacks, dietary supplements, cleaning products and personal care. As at 31 December 2023, Orkla had 19,671 employees and 114 factories in 24 countries.

Orkla ASA
Oslo, 15 July 2024

Ref.:
EVP Communication and Corporate Affairs
Håkon Mageli, mob.: +47 928 45 828

SVP Investor Relations
Kari Lindtvedt, mob.: +47 950 75 114

An Excel spreadsheet with key figures is available at https://investors.orkla.com/.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Ole Andreas Steensland Dahl, Investor Relations Manager at Orkla ASA, on 15 July 2024 at 07:00 CEST.