Orkla ASA — Earnings Release 2020

Oct 29, 2020

Broad-based growth for Orkla

Broad-based growth for Orkla

Orkla's operating profit (EBIT adj.) increased by 8.8% in the third quarter to

NOK 1,571 million. Operating revenues rose 9.5% to NOK 11,909 million.

Orkla's profit before tax amounted to NOK 1,706 million, an improvement of

33.7%. Adjusted earnings per share increased by 23.7% to NOK 1.46.

The Branded Consumer Goods business, including Headquarters, posted a 15.2%

improvement in operating profit. All five business areas had growth compared

with the third quarter of 2019: Orkla Consumer Investments (+ 47%), Orkla Care

(+ 16%), Orkla Confectionery & Snacks (+ 13%), Orkla Foods (+ 11%) and Orkla

Food Ingredients (+ 4%).

Turnover growth for Branded Consumer Goods was 10.6%. Orkla achieved organic

growth of 3.8% compared with the third quarter of 2019, whereas in the previous

quarter there was a year-over-year organic decline of 3.8%.

"I am very pleased with Orkla's broad-based progress. Compared with the third

quarter of 2019, consumers travelled less and spent more time at home, which

contributed to good growth for our brands in the grocery channel. Four out of

five business areas showed organic growth. The big change from the second

quarter of 2020 was that Orkla Food Ingredients and the rest of our Out of Home

segment saw a noticeably smaller decline in sales, due to the easing of

coronavirus restrictions," says Orkla President and CEO Jaan Ivar Semlitsch, who

adds,

"Our priorities during the ongoing crisis are to safeguard the health of our

employees, prevent the spread of infection and secure deliveries. We are also

executing on our strategy of strengthening our footprint in key home markets. In

the third quarter, we entered into an agreement to buy 67.8% of the shares in

the Indian company Eastern Condiments. This acquisition will help to double

Orkla's turnover in India."

Eastern, like Orkla's brand MTR, is well known and popular among Indian

consumers. Eastern has close to 3,000 employees and seven factories in four

different states in India. The acquisition is expected to be approved by the

Indian competition authorities in the fourth quarter of 2020.

Orkla's profit from associates increased in the third quarter by 89% to NOK 314

million. The improvement is mainly due to good profit growth for Jotun, where

there was underlying sales growth in the Decorative Paints and Marine Coatings

segments. In addition, raw material costs were somewhat lower.

Hydro Power's operating result amounted to NOK -3 million, compared with NOK 78

million in the third quarter of 2019. The decline in profit is chiefly explained

by lower power prices.

Orkla ASA

Oslo, 29 October 2020

Ref.:

Group Director Corporate Communications and Corporate Affairs

Håkon Mageli, mob.: +47 928 45 828

SVP Investor Relations

Kari Lindtvedt, mob.:+47 950 75 114

An Excel spreadsheet with key figures may be found

at https://investors.orkla.com/.

This information is subject to the disclosure requirements pursuant to Section 5

-12 the Norwegian Securities Trading Act