Orkla Brands

Good performance

In the course of 2008 Orkla Brands succeeded in rapidly correcting the weak profit performance the business area reported in 2007. A wide range of measures were implemented, the most important related to enhanced focus on internal improvement programmes and price increases to compensate for the market-driven increases in the cost of raw materials, energy and labour. Divestment of businesses and product areas with low profitability, and efforts to improve Bakers' business model in response to changed market conditions, were also important measures.

Results for 2008

All four business units reported underlying¹ growth in profit in 2008. This was largely due to price increases to meet market driven cost increases, and to the continuous focus on improvements throughout the value chain. However, the improved results must be seen in the light of poor performance in 2007, which reflected rising input costs that were not adequately offset by higher prices. The innovation programme has also been an important factor for profit performance, but too few large nnovations were achieved in 2008. There will be an internal focus on stepping up the pace of innovation in 2009.

Orkla_brands PDF of Orkla Brands

Operating revenues	NOK 23,398 million
EBITA	NOK 2,590 million

Facts about Orkla Brands

The former business areas Orkla Foods and Orkla Brands were amalgamated in 2008.

The new business area, Orkla Brands, is divided into the following four units: Orkla Foods Nordic, Orkla Brands Nordic, Orkla Brands International and Orkla Food Ingredients.