Oslo / NO. (ok) Norway’s Orkla ASA achieved a profit before tax of NOK 1.9 billion in the first quarter of 2024, up 8 percent, year over year. Revenues rose by 6 percent, to NOK 17.1 billion.
Orkla’s Consolidated Portfolio Companies (including headquarters) increased Ebit (adjusted) by 19 percent, to NOK 1.6 billion, in the first quarter of the year. The improvement is attributable to price and volume growth, cost-cutting measures and positive currency translation effects.
Orkla’s earnings per share (adjusted) for the quarter was NOK 1.50, up 14 percent compared to the same period last year.
«Orkla has made a strong start to the year. Most of the Portfolio Companies achieved organic growth, higher operating profits and increased cash flow from operations. I am particularly pleased about the companies’ volume growth, which was achieved in a quarter with fewer sale days due to the timing of Easter. It is also good to see high earnings growth combined with increased investments in advertising,» says Orkla President and CEO Nils K. Selte.
The profit contribution from associated companies in the first quarter amounted to NOK 415 million, down 2 percent compared to the same period last year. The decline is linked to currency losses made by Jotun (42.7 percent ownership interest) following devaluation of the Egyptian pound, which had a negative impact on both Jotun’s operating profit and its financial costs. Nevertheless, Jotun’s operating profit continued to develop positively, increasing by 12 percent in the first quarter on the back of volume growth, increased gross margin and effective cost controls.
Hydro Power’s Ebit (adjusted) ended at NOK 165 million for the first quarter, compared to NOK 255 million in the first quarter of 2023. The decline was due to lower power prices.
In October 2023, Orkla Food Ingredients (OFI) entered into a partnership agreement with Rhône, a leading private equity firm which invests in companies with a transatlantic presence. The transaction was completed on 17 April and will have accounting effect as of the same date.
«This agreement is a milestone for Orkla and will enable OFI to maintain its organic and structural growth. The transaction exemplifies the flexibility and value-creation potential of Orkla’s new operating model,» says Nils K. Selte.
Orkla is a leading industrial investment company with focus on brands and consumer-oriented companies. Its investment portfolio currently consists of 12 companies operating in sectors including paint, food products, food ingredients, confectionery and snacks, dietary supplements, cleaning products and personal care. As at 31 December 2024, Orkla had 19,671 employees and 114 factories in 24 countries.
