Orkla ASA — Earnings Release 2018

Jul 13, 2018

Profit growth for Orkla

Profit growth for Orkla

Orkla's operating profit (EBIT adj.) increased by 9% in the second quarter to

NOK 1,119 million. Orkla's operating revenues rose 3% in the second quarter, to

NOK 10,017 million.

Branded Consumer Goods posted 2% turnover growth. Organic turnover growth in the

period was 0.5%, adjusted for the loss of a distribution agreement within Orkla

Confectionery & Snacks. Orkla continued to achieve good growth in Finland and

Central Europe. Orkla Food Ingredients made fine progress in the second quarter

due to higher sales of ice cream ingredients.

Sales growth in Norway was weaker than last year, partly as a result of the 83%

increase in tax on chocolate and sugar. Several of Orkla's categories have seen

lower campaign activity and higher retail prices, which have impacted negatively

on volume growth.

"Our priority is to turn performance around in Norway, and to continue our

efforts to shift our portfolio towards higher growing categories, sales channels

and geographies. We maintain steady focus on improving our supply chain

efficiency, and in the second quarter decided to close two factories in Sweden

and Finland. We will make continuous improvements in production and procurement.

Effective 1 October, Orkla will be making changes in its Group Executive Board.

The aim is to strengthen the Group's strategic priorities and utilise our

executive management team in the best possible way," says Orkla President and

CEO Peter A. Ruzicka.

Profit from associates amounted to NOK 105 million in the second quarter, and

was largely attributable to Jotun. While Jotun has seen improved sales in the

past few months, the market situation for Marine Coatings remains challenging.

Hydro Power achieved operating profit of NOK 97 million in the second quarter,

an improvement of 23% from the corresponding period of 2017. The increase is

mainly due to higher power prices, while production volume declined.

Orkla's profit before tax increased by 13% to NOK 1,091 million in the second

quarter. Earnings per share for continuing operations rose 9% to NOK 0.82.

Orkla ASA

Oslo, 13 July 2018

Ref.:

Group Director Corporate Communications and Corporate Affairs

Håkon Mageli

Mob.: +47 928 45 828

SVP Investor Relations

Thomas Ljungqvist

Mob.: +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.