Oslo / NO. (ok) Orkla ASA´s first-quarter operating revenues totalled 14’792 million NOK (15’000 million NOK). Currency translation effects had a negative impact of 200 million NOK on operating revenues in the first quarter. Group Ebita amounted to 888 million NOK (786 million NOK) 2, of which Orkla Brands accounts for approximately 60 percent. Overall currency translation effects had a neutral impact on profit.
Preliminary results for the first quarter of 2012
| Key Figures in million NOK | Q1/2012 | Q1/2011 |
| Operating revenues: | 14’792 | 15’000 |
| Ebita: | 888 | 786 |
| Profit before tax: | 1’550 | 1’960 |
| Diluted earnings per share: | 1,30 NOK | 2,90 NOK |
| Cash flow from operations: | 16 | -437 |
| Net interest-bearing liabilities: | 9’487 | 20’664 |
| Equity ratio in percent: | 52,6 | 55,6 |
| Net gearing: | 0,27 | 0,42 |
First-quarter operating revenues for Orkla Brands totalled 5’583 million NOK (5’714 million NOK). Underlying sales growth in the quarter was around four percent, about one third of which was ascribable to the timing of Easter. Overall volumes were slightly higher than in 2011. Volume growth for products sold through the grocery channel was offset to some extent by soft markets and the loss of contract sales to industrial and export customers. Orkla Brands maintained its overall market shares.
Orkla Brands´ Ebita in the first quarter amounted to 523 million NOK (520 million NOK). Profit growth was boosted by the sale of Bakers and the timing of Easter. Higher advertising investments than in the same quarter of 2011 and the loss of contract production had a negative impact on profit. Sapa´s first-quarter operating revenues totalled 7’712 million NOK (7’882 million NOK) and Ebita was 182 million NOK (215 million NOK). Ebita was lower than in 2011 due to a negative market trend in Europe. Sapa Profiles Europe experienced a nine percent decline in volume in the first quarter.
Sapa Heat Transfer reported higher profit than in the fourth quarter of 2011. In North America, the positive trend continued, with market growth and increased market shares. The profiles business in Asia is currently being built up and made a negative contribution to profit in the quarter.
Borregaard Chemicals posted first-quarter operating revenues of 981 million NOK (1’032 million NOK). Underlying operating revenues were more or less unchanged from 2011. Ebita1 amounted to 125 million NOK (134 million NOK). First-quarter Ebita for Orkla Eiendom was 112 million NOK (eleven million NOK). The increase is primarily ascribable to the delivery of apartments in an ongoing property development project (Idun), and the sale of property in Switzerland and at Fornebu. Ebita for Hydro Power amounted to 33 million NOK (minus 13 million NOK). The hydropower business had higher production in the quarter. However, prices in the first quarter were substantially lower than in the same quarter of 2011.
Other income and expenses totalled minus 40 million NOK, and are essentially related to the current recognition of M+A costs at Group level.
First-quarter profit from associated companies totalled 353 million NOK (920 million NOK). The accounting gain on the sale of shares in Fornebu Utvikling ASA amounted to 77 million NOK, while the accounting effect on profit related to the investment in REC was 187 million NOK.
The Share Portfolio posted a net accounting gain of 427 million NOK (361 million NOK) in the first quarter. Net sales of shares totalled 1’050 million NOK in the quarter. At 31 March 2012, the return on the Share Portfolio was 12,9 percent, around two percentage points higher than the return on the Oslo Stock Exchange Benchmark Index in the same period. Net financial costs amounted to 119 million NOK (118 million NOK). Interest expense was equivalent to an average borrowing rate of 3,9 percent.
Group profit before tax amounted to 1’550 million NOK (1’960 million NOK). The tax charge in the first quarter was 245 million NOK. Orkla´s diluted earnings per share were 1,30 NOK in the first quarter, compared with 2,90 NOK in the first quarter of 2011.
The Group had a net cash flow of 1’011 million NOK in the first quarter (minus 1’098 million NOK). At 31 March, the Group´s net interest-bearing liabilities totalled 9’487 million NOK. At quarter end, the equity ratio was 52,6 percent, while net gearing was 0,27.
