Orkla Q3 profits miss analyst forecasts
Orkla's Q3 EBITA missed analyst forecasts
Norway-based consumer goods group Orkla has reported higher third-quarter profits but earnings missed analyst forecasts amid pressure on the company's foods unit.
Orkla booked EBITA of NOK860m (US$126.5m) for the three months to the end of September, compared to NOK819m in the third quarter of 2013.
However, analysts had forecast Orkla's EBITA would reach NOK873m, according to a Reuters poll.
Orkla, which has been reshaping its business in recent years to focus on FMCG, said EBITA from its branded consumer goods division was up 4% at NOK903m.
The company's branded consumer goods arm is split into five business units and the largest by sales - Orkla Foods - saw EBITA fall 5.8% year-on-year.
The unit reported a 3.4% decline in underlying sales with volumes under pressure in Norway and Denmark.
The profitability of the four other units improved year-on-year. Losses from the Orkla International unit fell from NOK8m in the third quarter of 2013 to NOK5m.
Operating revenues from the entire branded consumer goods division increased 1.2% to NOK7.2bn.
Group-wide operating revenues, which includes non-food businesses like a hydro power arm and aluminium venture Sapa, dipped 0.3% to NOK7.49bn.
Operating profit increased 29.7% to NOK807m, helped by lower operating expenses and a fall in depreciation and write-down charges. Net profit grew 20.8% to NOK545m.
Shares in Orkla fell 5.63% on Thursday, the day the results were announced, to NOK50.30. The stock is up 9.25% so far in 2014.
Click here for the full statement.
- Price an underlying tension across European FMCG
- Analysis: Tyson's shrewd investment in Beyond Meat
- Interview: UK trade body on Brexit's policy impact
- It won't just be Unilever to push for Brexit hikes
- Danone's Q3 sales - what the analysts say
- Nestle lowers outlook on "softer environment"
- Bel takes majority stake in MOM Group
- Mars launches Maltesers in the US
- Metropoulos invests in Utz Quality Foods
- Abbott sees international nutrition sales fall
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Packaged Food: Quarterly Statement Q3 2016
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review