Norway-based group Orkla Foods has posted a slump in annual profits as raw material costs continued to weigh on earnings.

The company, a unit of Norwegian conglomerate Orkla, booked a 23% fall in underlying net profit to NOK1bn (US$183.8m).

The fall in profits was exacerbated by a decrease in profits during the fourth quarter, as Orkla's attempts to push through price increases were held up. Underlying fourth-quarter net profit fell 14% to NOK388m.

Orkla said its bid to increase prices only started to bear fruit late in the fourth quarter and in January.

The company said that falling sales in central and Eastern Europe, plus a slowdown from its domestic bakery business, also hit earnings.

Full-year sales dipped 1.1% to NOK14.7bn, despite revenue inching up 0.6% during the fourth quarter.