Orkla ASA — Earnings Release 2018

Apr 25, 2018

Orkla delivers improvement in a challenging quarter

Orkla delivers improvement in a challenging quarter

Orkla's Branded Consumer Goods business achieved a turnover of NOK 9.5 billion

in the first quarter of 2018. Turnover growth was 7.5%, while organic growth was

0.1%.

Branded Consumer Goods' operating profit (EBIT adj.) increased by 2.3% to NOK

942 million. This improvement is largely attributable to the acquisition of

companies and positive currency translation effects.

"Orkla's Branded Consumer Goods business delivered organic growth and improved

operating profit in the first quarter of 2018. I am particularly pleased that

one of our largest companies, Orkla Foods Sverige, has delivered good organic

growth. It is also gratifying to see that we are managing to sustain sales

growth in Finland, the Baltics and Central Europe, as well as in Confectionery &

Snacks Sverige. In addition, we are continuing to deliver on our improvement

projects.

Nevertheless, results for the quarter were lower than expected due to a number

of factors: the timing of Easter meant fewer sales days in the Scandinavian

countries, a cold winter contributed to lower sales of ice cream ingredients and

painting tools, and the loss of Orkla Confectionery & Snacks's distribution

agreement with Wrigley has impacted negatively on profit," says Orkla President

and CEO Peter A. Ruzicka.

In the first quarter, Orkla completed the purchase of the Swedish company,

Health and Sports Nutrition Group, which is strategically important for our

focus on both digital sales and the health segment. Orkla also completed the

purchase of Danish Struer Brød, which produces breakfast cereals. Furthermore,

Orkla has invested in the Danish pizza restaurant chain Gorm's.

Profit from associates amounted to NOK 86 million, compared with NOK 173 million

in the first quarter of 2017. Jotun was negatively affected by very weak

shipbuilding markets and a sharp rise in raw material prices.

Hydro Power increased its operating profit by 9%, to NOK 59 million. The

increase is chiefly due to higher power prices than in the same quarter of last

year, while production volumes were somewhat lower.

Orkla's profit before tax amounted to NOK 886 million, compared with NOK 983

million in the same period of 2017.

Orkla ASA

Oslo, 25 April 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.

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.