Orkla's Branded Consumer Goods business reported profit growth in the third quarter. Orkla Foods' profit continued to improve, Orkla Brands maintained a high profit level and profit for Orkla Media was also higher. Profit for the Chemicals business was once again negatively affected by Denofa and fine chemicals.
Orkla's third quarter operating profit before goodwill amortisation was up 3 % compared with last year and totalled NOK 582 million. Operating revenues at the end of the first nine months amounted to NOK 23.5 billion, NOK 1.6 billion higher than in the same period last year.
"Orkla's Branded Consumer Goods business has so far achieved positive growth. In the Chemicals area, the core businesses reported good results and we are now restructuring the rest," says Group President and CEO Finn Jebsen.
In this connection, Orkla has given notice of provisions and write-downs in the Chemicals area that will improve annual profit by approximately NOK 125 million from 2006. The Chemicals area has posted NOK 515 million under "Other expenses" in the third quarter.
The continued rise on the stock markets also resulted in an increase in the value of Orkla's investment portfolio. The return has been 17.5 per cent so far this year, and in the first nine months the market value of the portfolio increased by NOK 2.1 billion.