Orkla, the Norway-based food-to-energy conglomerate hinted today (31 October) that any planned cuts set to hit the business were less likely to affect its food operations.
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The company, which has a food business including operations in the Nordic region, Russia and India, had warned earlier today that it would cut capacity and jobs across its business after posting falling quarterly profits.
Orkla saw operating profit fall 18.6% to just over NOK1bn (US$148.8m) during the three months to the end of September. Underlying revenue was flat at NOK16.56bn.
However, Orkla Brands, the division that includes its food business, posted rising profits on the back of success in pushing through price increases and the disposal of some loss-making operations. EBITA from the Orkla Brands division rose 18.8% to NOK708m on the back of a 6% rise in revenue to NOK5.65bn.
An Orkla spokesman said the company’s food business had been less affected by the economic downturn than some of the group’s other interests. “The food area is less cyclical than other parts of Orkla,” he told just-food.
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By GlobalDataThe Orkla spokesman refused to be drawn on the company’s specific plans but said any cuts were more likely to hit other parts of the group than the food business.
