Orkla ASA: Sapa (joint venture) - Broad-based profit growth for Sapa in Q1

·           Growth in underlying EBIT for all business areas
·           Positive effects from value add strategy
·           Improved cost position and lower overhead costs 

Group performance
Sapa further improved its underlying EBIT in the first quarter of 2017, compared to the same period last year, ending the quarter at NOK 778 million. The increase was driven by a higher share of value add business and internal improvements for all business areas, as well as higher volumes in Europe. All business areas improved their underlying EBIT.

Net interest bearing debt at the end of the first quarter amounted to NOK 0.3 billion.

Market development
In North America, total demand for extruded products increased by 1.7 percent1 compared to the same quarter last year. The increase was driven by stronger automotive demand and higher building and construction activities whereas demand from commercial transportation was declining.

In Europe, total demand for extruded products increased by 1.8 percent1 compared to the same quarter last year. Europe experienced stronger automotive and transportation demand, as well as an improved building and construction market.

Key Figures - Sapa (100%)

Sapa Q1
Volume (kmt) 349 366 340 310 355
Total operating revenues (mNOK) 13 905 14 071 13 140 12 210 14 323
Underlying EBITDA (mNOK) 901 1 132 812 653 1 100
Underlying EBIT (mNOK) 571 804 487 335 778
Reported EBIT (mNOK) 655 920 497 350 856

Orkla ASA
Oslo, 28 April 2017

[1] Source: CRU data


Senior Vice President Investor Relations
Mattias Orrenius
Tel.: +47 983 66 334
Email: mattias.orrenius@orkla.no

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.