Orkla Food Ingredients accounts for 23% of Orkla’s operating revenues. Orkla Food Ingredients is the leading supplier of bakery ingredients in the Nordic and Baltic regions, in addition to holding growing positions in selected countries in Europe.
The business area has sales and distribution companies in 21 countries. Artisanal and industrial bakeries account for around 66% of sales. Approximately 20% are direct-to-consumer sales under well-known brands such as Odense Marcipan, Mors Hjemmebakte, Kronjäst, Bakkedal and Naturli’. The remaining 14% are sales of ice cream ingredients and accessories. A major share of Orkla Food Ingredients’ sales stem from distribution agreements. Due to this factor, and to a substantial share of raw material sales, Orkla Food Ingredients’ operating margin is lower than that of the other business areas in Branded Consumer Goods. However, its return on capital is more comparable to that of the other areas.
Source: Orkla ASA Annual Report 2018