Orkla ASA — Earnings Release 2018

Oct 25, 2018

Profit growth for Orkla

Profit growth for Orkla

Orkla's operating profit (EBIT adj.) increased by 7% in the third quarter to NOK

1,353 million. Orkla's operating revenues increased in the third quarter by 3%,

to NOK 10,126 million.

Branded Consumer Goods achieved turnover growth of 2%. Organic turnover growth

was 0.8% in the period, adjusted for the loss of a distribution agreement in

Orkla Confectionery & Snacks. Three out of four business areas delivered profit

growth.

"We had sales growth in a majority of the markets in which we operate, and are

particularly pleased by the progress made in Finland, Central Europe and India.

Growth in Orkla Care was hampered by a weak performance in Poland and the UK.

Several of Orkla's categories in Norway have been affected by lower campaign

activity and higher retail prices to consumers, which had a negative impact on

volume growth. In addition, the huge increase in taxes in the Norwegian market

resulted in growth in online and cross-border shopping. It is encouraging that

the Government is now reversing the increase in the chocolate and confectionery

tax," says Orkla President and CEO Peter A. Ruzicka.

Orkla made a number of structural changes in the third quarter. In the Czech

Republic and Slovakia, it decided to integrate the two companies Hamé and Vitana

to form a single Orkla Foods company. In the UK, Orkla Food Ingredients acquired

the chocolate and caramel manufacturer County Confectionery, which chiefly

supplies the industrial market.

Profit from associates totalled NOK 116 million in the third quarter. This 13%

increase is largely attributable to Jotun. The market situation remains

challenging in Marine Coatings.

Hydro Power achieved operating profit of NOK 102 million in the third quarter,

an improvement of 28% from the same period of 2017. The increase is mainly due

to higher power prices, while production volume declined.

Orkla's profit before tax rose by 4% to NOK 1,364 million in the third quarter.

Earnings per share for continuing operations increased by 3%, to NOK 1.01.

Orkla ASA

Oslo, 25 October 2018

Ref.:

Group Director Corporate Communications and Corporate Affairs

Håkon Mageli

Mob.: +47 928 45 828

SVP Investor Relations

Thomas Ljungqvist

Mobil +47 482 59 618

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.