Orkla had a solid improvement in both profit and revenues in the first quarter.
Profit before tax amounted to NOK 1.7 billion, a year-over-year increase of 12%.
Operating profit EBIT (adj.) rose by 5% to NOK 1.6 billion. The group’s first
…
Vis børsmeldingen
-quarter operating revenues totalled NOK 16.2 billion, equivalent to 22% growth.
Orkla’s Branded Consumer Goods business increased its operating revenues by 23%
to NOK 15.8 billion in the first quarter. There was 13% organic turnover growth,
driven by price increases to compensate for higher costs in the value chain.
Branded Consumer Goods, including Headquarters, increased its operating profit
EBIT (adj.) by 14% to NOK 1.35 billion in the first quarter. Five out of six
business areas showed profit growth. High costs related to the start-up of a new
biscuit factory weighed on profit for Orkla Confectionery & Snacks.
Orkla’s profit from associates and joint ventures rose by 77% to NOK 422 million
in the first quarter. The entire increase can be linked to Jotun, in which Orkla
has a 42.7% interest. Jotun increased its operating revenues by 24% to NOK 7.8
billion. Sales improvement was particularly strong in the Decorative, Marine and
Protective segments. Operating profit EBITA rose by 81% to NOK 1.6 billion,
driven by improved gross margin, volume growth and good cost control.
Hydro Power’s operating profit EBIT (adj.) amounted to NOK 255 million in the
first quarter, compared with NOK 345 million in the same quarter of 2022. The
decline is chiefly due to lower power prices, year over year, and the effects of
a new windfall tax (high-price contribution) on power production that was
introduced in September 2022.
Adjusted earnings per share were NOK 1.32 for the first quarter, an increase of
6%.
“I am pleased with the first quarter results. Orkla can point to high organic
growth and profit improvement. Jotun and Orkla Food Ingredients have delivered a
particularly strong performance. Increased inflation and rising interest rates
have reduced consumer purchasing power in most of our markets, in turn putting
pressure on our sales volumes. Even though there is great uncertainty as regards
future economic trends, we have strong brands and robust value chains. I
therefore look forward with cautious optimism. Orkla will continue to increase
its investments in brand-building, while continuously seeking opportunities to
improve costs,” says Orkla President and CEO Nils K. Selte.
“On 1 March we implemented our new business model with 12 autonomous portfolio
companies. Orkla has become an industrial investment company, with focus on
strong brands and consumer-oriented companies. We are making good progress on a
comprehensive strategy process to ensure that the potential in each company is
fully exploited. The composition of most of the Boards of Directors of the
various portfolio companies has now been determined. Today, I am happy to
announce the new composition of Orkla Foods Europe’s Board of Directors, which
now includes solid external expertise,” he adds.
Xavier Belison and Kjersti Hobøl have been appointed as chairman and member,
respectively, of the Board of Directors of Orkla Foods Europe. Mr Belison, who
is a French citizen, has top leader experience from Continental Foods, Heineken
and Mars. At present, he is Chairman of the Board of Directors of Groupe Panzani
and Partner in Pet Food. Ms Hobøl is CEO of Nille, and has previous top leader
experience from Kid, DNB and Princess. She is currently member of the Board of
Directors of Elektroimportøren, Aspelin Ramm, Byggmax and XXL Sport og Villmark.
In addition to Mr Belison and Ms Hobøl, Orkla Foods Europe’s Board of Directors
will consist of Atle Vidar Nagel Johansen, Øyvind Torpp and Hege Holter Brekke,
all of whom are EVPs & Investment Executives at Orkla ASA. There will also be
two employee representatives, who have yet to be chosen. Orkla President and CEO
Nils K. Selte and CFO Harald Ullevoldsæter will sit on the Board as observers.
Orkla ASA
Oslo, 9 May 2023
Ref.:
EVP Communication and Corporate Affairs
Håkon Mageli, mob.: +47 928 45 828
Investor Relations Manager
Kjetil Sørum, mob.: +47 996 02 964
An Excel spreadsheet with key figures may be found 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 Kjetil Sørum, Investor
Relations Manager at Orkla ASA, on 9 May 2023 at 07:00 CEST.
Kilde
