• Profit growth primarily linked to sales growth and expansion
• Continued improvement in market shares
• The acquisition of Dansk Droge was completed in early September and is included in the financial statements as of 1 September 

Orkla Brands’ operating revenues amounted to NOK 1,737 million in the third quarter (NOK 1,558 million)¹. Adjusted for new businesses (Collett Pharma and Dansk Droge) and exchange rate fluctuations, operating revenues were 2 % higher than last year. The Snacks business, Lilleborg, Confectionery and Textiles all reported good revenue growth in the third quarter, largely due to increased distribution, new product launches and a high level of activity. Some companies experienced delivery problems that intensified towards the end of the quarter. This will have a negative impact in the fourth quarter as well. At the end of the third quarter, accumulated underlying² growth in operating revenues was 2 %. 

Operating profit before amortisation totalled NOK 327 million (NOK 291 million)¹ for the third quarter. Adjusted for acquired businesses, this is approximately
NOK 25 million higher than last year. Profit growth was largely ascribable to a combination of revenue growth and somewhat lower investments in advertising. However, advertising investments are expected to increase somewhat in the fourth quarter. Profit growth was relatively broad-based, and only the Biscuits business did not achieve profit growth in the third quarter. This has been a general trend for the Biscuits business in the past year and is mainly due to weak volume growth in Sweden. Efforts to reduce costs in all parts of the value chain are ongoing.

The acquisition of Dansk Droge was completed at the beginning of September and the company was integrated into the financial statements from the same date. A new management team has been established for the Dietary Supplements area and the integration of the company is proceeding according to plan.

The main new launches in the third quarter were Smash!Bar (Confectionery), Blenda Aloe Vera (Lilleborg), Möllers VAK-R (Dietary Supplements) and Polly Spesialnøtter (Snacks Norway). New products launched in the first quarter, such as Nidar Smågodtfavoritter (Confectionery), OMO Tabletter (Lilleborg), Bixit Sport (Biscuits) and Pierre Robert (Textiles) also made a good contribution in the third quarter.

The overall trend for market shares was positive.

1 The figures in brackets are for the same period last year
2 Excluding acquisitions, divestments and currency translation effects

Orkla third quarter 2006