Vision, values and strategy

Orkla’s vision is “Your friend in everyday life”, a vision that is underpinned by the values “brave”, “trustworthy” and “inspiring”. Orkla’s mission is “Improving everyday life with sustainable and enjoyable local brands”.

Value creation

Long-term value creation is Orkla’s top priority.

Working more closely across the Group, as “One Orkla”, strategies and capabilities are implemented to strengthen the Group’s long-term competitiveness, increase growth and profitability and maintain Orkla’s strong local presence.

Strategy

Orkla’s strategic objective is to strengthen its position as the leading branded consumer goods and service company in the Nordics, Baltics and other selected markets.

Activities that drive organic growth and improve profitability are prioritised in line with the Group’s strategy and financial targets.

Through acquisitions, Orkla will expand its activities in its home markets and selected geographical areas, channels or niches where it can achieve leading positions based on the Group’s core competencies.

Steps will be taken to simplify the Group’s organisational structure.

The primary driver of long-term value creation is organic growth for local brands and services

  • Orkla aims to stand out from its competitors through its unique local insight and presence.
  • Innovations based on the Group’s unique local customer and consumer insight will be a main growth driver.
  • A growing number of new products will be launched across Orkla’s markets and business areas through closer collaboration as “One Orkla.”
  • Priority will be given to further developing and strengthening customer relations, with a shared goal of profitable growth.
  • Orkla will increase its presence in emerging sales channels and focus more purposefully on export.

Improved profitability through more efficient operations throughout the value chain

  • The Group will exploit economies of scale and create cross-cutting synergies more effectively by working more closely as “One Orkla”.
  • The Group will also create synergies through the integration of acquired companies.
  • Production will be concentrated on fewer, but larger production units, thereby freeing up resources for innovation, growth and competence building.
  • Steps will be taken to simplify the Group’s organisational structure, including IT and administration.

Acquisitions in the Branded Consumer Goods business

  • In addition to generating organic growth, acquisitions will help consolidate Orkla’s position as the leading branded consumer goods company in its home markets.
  • Through acquisitions, Orkla will strengthen its activities in selected geographical areas, channels or niches where it can achieve leading positions based on the Group’s core competencies.

Clear strategy for capital allocation

Orkla has completed its transformation from an industrial conglomerate into a leading branded consumer goods and service company. Its first priority is to transfer excess capital to make acquisitions in Branded Consumer Goods and Services, and investments in existing operations.

The Board of Directors has proposed a dividend policy entailing maintenance of a stable dividend of at least NOK 2.50 per share.

The Group’s goal is to remain an investment grade company. This means aiming to ensure a net interest-bearing liabilities / EBITDA ratio over time of less than 2.5–3.0.

Orkla - Your friend in everyday life

Orkla’s new vision is “Your friend in everyday life”, a vision that is underpinned by the values “brave”, “trustworthy” and “inspiring”.

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Financial targets

  • Deliver organic growth at least in line with market growth
  • Target annual adj. EBIT growth of 6-9%* in BCG
    *Including add-ons, excluding currency effects and large acquisitions and divestments

Outlook

Orkla continues to face strong competition from imported international brands and the retail trade’s private labels.

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Financial risk, risk management and internal control

Disclosure of Orkla’s financial risks within the business areas, and the management of these risks.

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