Orkla ASA — Earnings Release 2019

Oct 24, 2019

Orkla ASA: Improvement for Orkla

Orkla ASA: Improvement for Orkla

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

total of NOK 1,444 million. Operating revenues also rose by 7%, to NOK 10,880

million. President and CEO Ivar Semlitsch has initiated a project to strengthen

Orkla's competitiveness.

The Branded Consumer Goods business achieved organic turnover growth of 1.5% and

a 6.2% improvement in operating profit.

"Orkla's Branded Consumer Goods business has had a satisfactory quarter, with

both top-line and bottom-line growth. All four business areas delivered organic

growth in the quarter. It is positive to see that after a relatively strong

third quarter last year, we are still able to deliver profit growth, although

performances varied from one company to another. Three out of four business

areas reported improved profit," says Orkla President and CEO Jaan Ivar

Semlitsch, who adds:

"I am committed to  deliver on our financial targets up to 2021. I have

initiated a project to ensure that we have the optimal organisational structure

for increasing organic growth and reducing complexity. I also want to have a

clearer M&A agenda. I therefore want to strengthen the business areas and define

clear roles for the Group's support functions. Preliminary assessments show that

we can thereby also reduce annual costs at Orkla Headquarters by NOK 150-200

million.

Orkla Confectionery & Snacks purchased 20% of the leading Icelandic chocolate

and confectionery company Nói Siríus in the quarter. Orkla Food Ingredients

purchased the Dutch ingredients company Vamo, while Orkla House Care entered

into an agreement to take over the remaining 50% of the shares in the joint

venture company Anza Verimex Holding. On 25 September 2019, Orkla's sale of

Treschows gate 16 to the City of Oslo was approved by the Oslo City Council.

Orkla Financial Investments achieved operating profit of NOK 29 million in the

third quarter, compared with negative NOK 8 million in the same period of last

year. The improvement was mainly related to the Finnish company Kotipizza Group.

Hydro Power posted operating profit of NOK 78 million in the third quarter,

compared with NOK 102 million in the same period of 2018. The decline is chiefly

due to lower power prices.

Jotun had another strong quarter, boosting profit from associates by 43% to NOK

166 million in the third quarter.

Accounting write-downs of goodwill related to the UK painting tool company

Harris and the Orkla Health brands Gerimax and Colon C were taken in the

quarter. Orkla's profit before tax totalled NOK 1,276 million, a decline of 6%.

Adjusted earnings per share increased by 11% to NOK 1.18.

Orkla ASA

Oslo, 24 October 2019

Ref.:

Group Director Corporate Communications and Corporate Affairs

Håkon Mageli

Mobile +47 928 45 828

SVP Investor Relations

Thomas Ljungqvist

Mobile +47 482 59 618

An Excel spreadsheet showing key figures may be found at www.orkla.no

(http://www.orkla.no/).

This information is subject to the disclosure requirements pursuant to section

5 - 12 of the Norwegian Securities Trading Act.

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