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ER - Broad-based growth in Orkla

Company: Orkla ASA Date: 2018-02-08 Language: English Register to download

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 Broad-based growth in Orkla

# Broad-based growth in Orkla

  

  

  

Orkla achieved operating profit (EBIT adj.) of NOK 1,443 million in the fourth  

quarter of 2017, an increase of 10%. Branded Consumer Goods posted an  

improvement of 15% in operating profit.  

  

Operating revenues for Branded Consumer Goods rose 9% to NOK 10,587 million,  

while organic growth in turnover was 2.8%.  

  

"With a strong fourth quarter, we delivered in line with our strategic and  

financial targets for 2017. All the business areas in Branded Consumer Goods  

achieved organic growth and improved operating profit in the fourth quarter. The  

improvement was driven by both volume growth and price increases, as well as  

cost savings," says Orkla President and CEO Peter A. Ruzicka.  

  

Orkla strengthened its Branded Consumer Goods business as a result of several  

transactions in the fourth quarter. An agreement was signed to acquire Health  

and Sport Nutrition Group (HSNG), which runs the Gymgrossisten and Bodystore e-  

commerce portals. Orkla Foods purchased Agrimex, a Czech frozen vegetable  

producer, while Orkla Food Ingredients completed its purchase of Norwegian  

ingredients supplier Arne B. Corneliussen.  

  

In January this year, Orkla Care increased its equity interest in the joint  

venture company, Anza Verimex NV, in the Netherlands to 50%, and took over 50%  

of the painting tools business of the Belgian company, PGZ International B.V.  

 On 1 February, Orkla Foods Sverige acquired the Danish company Struer Brød A/S,  

thereby strengthening its position in the Nordic breakfast cereal market. Orkla  

continued its efforts to optimise its product portfolio, among other things  

through Orkla Foods Danmark's sale of K-Salat to Stryhns A/S.  

  

Hydro Power posted substantially higher operating profit. EBIT (adj.) amounted  

to NOK 103 million, compared with NOK 31 million in the fourth quarter of 2016.  

The profit increase is chiefly due to significantly higher production volume.  

  

Operating result from associates amounted to NOK -78 million, compared with NOK  

\-29 million in the corresponding quarter of 2016. The fourth quarter is a  

seasonally weak quarter for Jotun. Profit performance is still affected by  

higher raw material prices and weak markets in the shipbuilding and offshore  

sectors.  

  

Orkla's profit before tax for continuing operations increased by 13%, amounting  

to NOK 1,309 million in the fourth quarter.  

  

Earnings per share from continuing operations amounted to NOK 0.96 in the fourth  

quarter, up 5% from the fourth quarter of 2016.  

  

For the full year, Orkla's operating revenues rose 5% to NOK 39,561 million.  

Operating profit (EBIT adj.) increased by 8% in 2017, to NOK 4,635 million. At  

year end, the Group had 18,178 employees.  

  

Orkla's Board of Directors intends to propose a dividend of NOK 2.60 per share  

for the 2017 financial year.  

  

  

  

Orkla ASA  

Oslo, 8 February 2018  

  

  

  

Ref.:  

Group Director Corporate Communications and Corporate Affairs  

Håkon Mageli  

Mob.: +47 928 45 828  

  

SVP Investor Relations  

Mattias Orrenius  

Mob.: +47 983 66 334  

  

  

  

An Excel spreadsheet with key figures may be found at www.orkla.com. This  

information is subject to the disclosure requirements pursuant to section 5-12  

of the Norwegian Securities Trading Act.  

  

This information is subject to the disclosure requirements pursuant to section  

5 -12 of the Norwegian Securities Trading Act.