Norwegian conglomerate Orkla has booked a 19% jump in first-quarter operating profit, despite a lacklustre performance from its FMCG unit Orkla Brands.

Operating profit rose to NKK786m (US$148.5) in the quarter, the company said today (5 May). Total sales during the three months to 31 March rose 15% to NOK1.5bn.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

However, Orkla, which also has interests in aluminium, materials and financial sectors, said that profits at its Orkla Brands FMCG division were hit by one-time costs at its international segment associated with the establishment of Orkla Brands Russia.

First-quarter EBITA at Orkla Brands amounted to NOK520, down from NOK624m last year. Profit was “significantly affected” by the decline of NOK63m in operating profit for Orkla Brands International, the company said.

Although the unit, which includes businesses from Lilleborg detergents to snack maker Chips Group, has taken steps to compensate for higher raw materials costs, profitability has been impacted by a “natural lag” in through flow. The group revealed that further price increases are planned.

Orkla Brands reported revenues of NOK5.71bn, compared to NOK5.4bn in the comparable period of last year. Underlying sales were “on a par” with the same quarter in 2010. However, taking into account the timing of Easter, the underlying growth in sales was approximately 2%, the company revealed.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Orkla added that it has taken steps in the first quarter towards focusing its operations, including the acquisition of Rasoi Magic Foods, an Indian manufacturer of spices and spice mixes, through its Orkla Brands unit.

Moving forward, Orkla president and CEO Bjørn Wiggen said that the company would continue to invest in developing Orkla Brands “both operationally and structurally”.

Just Food Excellence Awards - The Benefits of Entering

Gain the recognition you deserve! The Just Food Excellence Awards celebrate innovation, leadership, and impact. By entering, you showcase your achievements, elevate your industry profile, and position yourself among top leaders driving food industry advancements. Don’t miss your chance to stand out—submit your entry today!

Nominate Now