Orkla CEO "pleased" with fifth consecutive quarter of organic growth

Orkla CEO "pleased" with fifth consecutive quarter of organic growth

  • Orkla's consumer business sees 11% increase in EBIT
  • Sales supported by innovation
  • Fifth quarter of organic growth despite "demanding" markets

Innovation and cost savings contributed to "continued improvement" at Orkla's branded consumer goods business in the second quarter, where operating profit increased 11% year-on-year.

Orkla said this morning (17 July) the unit booked an operating profit of NOK820m (US$100.7m) in the second quarter.

Operating revenue rose to NOK7.7m, up from NOK7.1m in the year-ago period. Branded consumer goods booked a 0.1% increase in organic sales but, adjusted for the timing of Easter, growth stood at around 2.7%, Norway-based Orkla stressed.

Orkla president and CEO Peter Ruzicka said sales were driven by "positive volume mix development". The company's Orkla foods, Orkla confectionery & snacks and Orkla food ingredients (OFI) business areas all showed improvement, the company revealed. Speaking during an analyst presentation, Rusicka revealed in Orkla food the revenue increase was "broad based", while in Orkla confectionery & snacks the improvement was largely driven by Norway.

"All in all, I am pleased with the second quarter. Despite demanding markets, we have delivered organic growth for the fifth quarter in a row. We continue to focus on operations. Extensive efforts have been concentrated on improvement projects and a variety of cost-reducing measures," said Ruzicka.

As it works to strengthen its consumer foods business, Orkla made a number of acquisitions in the second quarter. It entered into an agreement to purchase the Swedish company Anamma Food, which manufactures frozen vegan dishes. Orkla also announced the purchase of the Austrian company Bioquelle, which operates in categories such as muesli, nuts, dried fruit, health food and organic food, in addition to distributing soy-based products.

On a group-wide basis – including the contribution of businesses such as hydro power and joint ventures Orkla’s operating profit increased by 18% to NOK789m.