Orkla’s operating profit (EBIT adj.) increased by 7% in the third quarter to a total of NOK 1,444 million. Operating revenues also rose by 7%, to NOK 10,880 million. President and CEO Ivar Semlitsch has initiated a project to strengthen Orkla’s competitiveness.
The Branded Consumer Goods business achieved organic turnover growth of 1.5% and a 6.2% improvement in operating profit.
“Orkla’s Branded Consumer Goods business has had a satisfactory quarter, with both top-line and bottom-line growth. All four business areas delivered organic growth in the quarter. It is positive to see that after a relatively strong third quarter last year, we are still able to deliver profit growth, although performances varied from one company to another. Three out of four business areas reported improved profit,” says Orkla President and CEO Jaan Ivar Semlitsch, who adds:
“I am committed to deliver on our financial targets up to 2021. I have initiated a project to ensure that we have the optimal organisational structure for increasing organic growth and reducing complexity. I also want to have a clearer M&A agenda. I therefore want to strengthen the business areas and define clear roles for the Group’s support functions. Preliminary assessments show that we can thereby also reduce annual costs at Orkla Headquarters by NOK 150-200 million.
Orkla Confectionery & Snacks purchased 20% of the leading Icelandic chocolate and confectionery company Nói Siríus in the quarter. Orkla Food Ingredients purchased the Dutch ingredients company Vamo, while Orkla House Care entered into an agreement to take over the remaining 50% of the shares in the joint venture company Anza Verimex Holding. On 25 September 2019, Orkla’s sale of Treschows gate 16 to the City of Oslo was approved by the Oslo City Council.
Orkla Financial Investments achieved operating profit of NOK 29 million in the third quarter, compared with negative NOK 8 million in the same period of last year. The improvement was mainly related to the Finnish company Kotipizza Group.
Hydro Power posted operating profit of NOK 78 million in the third quarter, compared with NOK 102 million in the same period of 2018. The decline is chiefly due to lower power prices.
Jotun had another strong quarter, boosting profit from associates by 43% to NOK 166 million in the third quarter.
Accounting write-downs of goodwill related to the UK painting tool company Harris and the Orkla Health brands Gerimax and Colon C were taken in the quarter. Orkla’s profit before tax totalled NOK 1,276 million, a decline of 6%.
Adjusted earnings per share increased by 11% to NOK 1.18.
The quarterly results will be presented at 8.00 a.m. at the Orkla House, Drammensveien 149, Oslo. The presentation and subsequent Q&A session will be held in English and may be viewed in a live webcast or followed by telephone. Dial-in details: +47 21 03 33 94. Pincode: 1661193.
CFO Orkla Consumer & Financial Investments, Head Orkla Venture
Group Director, Corporate Communications & Corporate Affairs
+ 47 928 45 828