Orkla Food Ingredients accounts for 22% of the Branded Consumer Goods business’s operating revenues. Orkla Food Ingredients is the leading supplier of bakery ingredients in the Nordic region, in addition to holding growing positions in selected countries in Europe.
Its biggest product categories are margarine and butter blends, yeast, bread and cake improvers and mixes, marzipan and ice cream ingredients.
The business area has sales and distribution companies in 22 countries. Around 70% of sales are made to artisanal and industrial bakeries. Some 20% are sales directly to the consumer through well-known brands such as Mors Hjemmebakte, Kronjäst, Odense and Bakkedal. The remaining 10% of turnover is generated by sales of ice cream ingredients and accessories. Orkla Food Ingredients is one of Europe’s leading suppliers of ice cream ingredients and accessories, with a presence in the Nordics, Germany, the Netherlands and the UK. Acquisitions in 2016 have further strengthened this position.
A large share of Orkla Food Ingredients’ sales derives from distribution agreements. Because of this, and because a substantial share of its sales consist of raw materials, the business area’s operating margin is lower than that of Branded Consumer Goods’ other business areas. However, its return on capital is more comparable to that of the other areas.
*Adjusted for currency translation effects and structural changes.
**Operating profit before other income and expenses.
Source: Orkla ASA Annual Report 2016