Norwegian conglomerate Orkla, which has food businesses across Russia, India and Europe, has seen profit growth from its FMCG arm slow again during its third quarter.
The company’s Orkla Brands division booked a 2.2% rise in third-quarter EBITA to NOK776m (US$131.8m) for the three months to the end of September as profits from its Orkla Foods Nordic arm fell.
In the second quarter of 2010, Orkla Brands’ EBITA was up 2.9%.
However, Orkla Brands’ revenues were up 2.5% to NOK5.8bn during the third quarter; the second quarter of 2010 saw sales from the division fall 3.9% year-on-year.
Nonetheless, the company admitted the four divisions within its Orkla Brands arm had put in “varying performances” in terms of third-quarter sales.
Of the three food-related divisions, Orkla Foods Nordic saw sales fall 4% due to lower sales from its Bakers unit, while Orkla Foods Ingredients posted a 2% increase in sales.
Orkla Brands International, which includes the conglomerate’s FMCG businesses in central and Eastern Europe, Russia and India, saw sales drop 5% as a hot summer in Russia hit chocolate sales.
Looking at Orkla’s business as a whole, third-quarter EBITA stood at NOK1.17bn, up from NOK811m a year earlier. Sales were up 15% at NOK16.26bn.