Pre-close information Q2 2025
As a service to the capital markets, the Orkla IR team would like to draw your attention to the following items to remember in advance of Q2 2025 reporting.
We omit P&L items for the consolidated portfolio companies that are categorized as “other income and expenses” from the commentary, as these have already been removed from EBIT adjusted. We instead focus on items that are expected to be of a non-recurring nature, as well as previously communicated outlook statements.
General information
At the Q4 2024 presentation, Orkla stated that input costs in total, excluding cocoa, are expected to remain stable in 2025, although there is a polarized picture among various raw materials.
Structural transactions
Hydro Power
On 24 January, Orkla announced the sale of its hydro power portfolio for a total value of NOK 6.1 billion on a cash and debt-free basis. Please find the full stock exchange release here: https://newsweb.oslobors.no/message/637067
Status of transactions:
- Sale of Orkla Energi AS and Trælandsfos Holding AS completed (30 April 2025) https://newsweb.oslobors.no/message/644902
- Sale of Sarpsfoss Limited completed (11 April 2025) https://newsweb.oslobors.no/message/643611
Impact on the financials:
- The profit and proceeds from the sale will be booked in the Q2 2025 financial statements as discontinued operations.
- As previously mentioned, the buyers bear the economic risk from 1 January 2025, and Orkla was compensated with a market-based interest rate on the purchase price upon closing of the transactions. These two effects are netted out upon calculation of the final gain from the transactions.
Portfolio companies
Jotun
Outlook (Q4 2024)
Jotun expects continued sales growth at a higher level than projected market growth. On the other hand, operating margins are expected to decline compared to the historically high levels seen over the last two years. On balance, we expect Jotun to report 2025 results on par with 2024.
Orkla Snacks
Cocoa prices (Q1 2025)
Cocoa prices remain higher and more volatile than in the past, but are expected to come down to a more sustainable level over time as supply-demand balances out.
Cocoa volumes (Q1 2025)
Volumes have been secured for the majority of 2025. The impact of cocoa price increases on consumer chocolate prices and demand over the following quarters remains uncertain.
Orkla Food Ingredients
Cost program in the Sweet cluster
Cost program initiated in Q3 2024, which is expected to see gradual benefits in 2025 with a high double-digit million cost reduction in total. As of Q1 2025, most of the initiatives had been implemented and were reflected in the results for the quarter.
US exposure
- Orkla's import of direct material to the US and sourcing from the US each represent less than 1% of sourcing.
- Orkla's exports to the US represent less than 1% of operating revenues.