Norway-based consumer goods group Orkla has reported higher third-quarter profits but earnings missed analyst forecasts amid pressure on the company’s foods unit.
Orkla booked EBITA of NOK860m (US$126.5m) for the three months to the end of September, compared to NOK819m in the third quarter of 2013.
Go deeper with GlobalData
However, analysts had forecast Orkla’s EBITA would reach NOK873m, according to a Reuters poll.
Orkla, which has been reshaping its business in recent years to focus on FMCG, said EBITA from its branded consumer goods division was up 4% at NOK903m.
The company’s branded consumer goods arm is split into five business units and the largest by sales – Orkla Foods – saw EBITA fall 5.8% year-on-year.
The unit reported a 3.4% decline in underlying sales with volumes under pressure in Norway and Denmark.
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 GlobalDataThe profitability of the four other units improved year-on-year. Losses from the Orkla International unit fell from NOK8m in the third quarter of 2013 to NOK5m.
Operating revenues from the entire branded consumer goods division increased 1.2% to NOK7.2bn.
Group-wide operating revenues, which includes non-food businesses like a hydro power arm and aluminium venture Sapa, dipped 0.3% to NOK7.49bn.
Operating profit increased 29.7% to NOK807m, helped by lower operating expenses and a fall in depreciation and write-down charges. Net profit grew 20.8% to NOK545m.
Shares in Orkla fell 5.63% on Thursday, the day the results were announced, to NOK50.30. The stock is up 9.25% so far in 2014.
Click here for the full statement.
