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October 30, 2013

NORWAY: Rieber acquisition drives Orkla Q3 growth

Nordic food group Orkla has said third-quarter sales and profit growth was driven by its recent acquisition of Rieber & Son.

Nordic food group Orkla has said third-quarter sales and profit growth was driven by its recent acquisition of Rieber & Son.

The company booked an increase in operating profit for the three-month period, which rose to NOK909m (US$154.7m) compared to NOK686m last year. Gains were driven by the consumer foods business, where operating profit totalled NOK364m in the third quarter, up from NOK312m in the comparable period of last year.

CEO Åge Korsvold attributed the growth in branded food profits to the Rieber acquisition, adding the integration process is “on track”. However, he emphasised the group had not delivered organic growth during the period.

“The improvement is primarily ascribable to acquired companies in the branded consumer goods area, and is not the result of organic growth. Seen in isolation, I am therefore not satisfied with the results for the quarter,” he said.

Total revenue totalled NOK8.44bn, up from NOK7.19bn in the third quarter of 2012.

Orkla sealed its acquisition of Rieber in April. The deal, which valued Rieber at NOK6.1bn, was announced last August.

Click here to read our analysis of the acquisition, published in August 2012.

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