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July 17, 2014

NORWAY: Orkla operating profit jumps on efficiencies

Nordic consumer goods giant Orkla today (17 July) booked a 19% increase in second-quarter operating profit, boosted by savings from the integration of 2012 acquisition Rieber & Søn

Nordic consumer goods giant Orkla today (17 July) booked a 19% increase in second-quarter operating profit, boosted by savings from the integration of 2012 acquisition Rieber & Søn

EBITA totalled NOK751m (US$212.2m) in the period, the company revealed. Operating profit at its branded consumer goods business totalled NOK704m, up from NOK584m in the year-ago period.

“Orkla Foods realised substantial cost synergies as a result of the integration of Rieber & Søn,” the company said. Orkla said its confectionery and snacks unit was “still challenging” but added there were “signs of improvement” toward the end of the quarter.

“All in all, I am satisfied with the group’s profit performance. Substantial resources have been invested in change processes and the integration of Rieber & Søn. Our primary challenge ahead is to achieve organic growth in turnover,” Orkla president and CEO Peter Ruzicka said.

In the second quarter, sales edged up to NOK8.46bn, compared to NOK7.9bn last year. Orkla’s foods and confectionery and snacks units both saw a sales slowdown, which was offset by increased revenues from branded, international, home and personal care and ingredients. 

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