Orkla ASA — Earnings Release 2019

Feb 6, 2020

Orkla ASA: Improvement for Orkla's branded consumer goods

Orkla ASA: Improvement for Orkla's branded consumer goods

Orkla increased operating revenues in the fourth quarter by 9.4% to NOK 12,017

million. Operating profit (EBIT adj.) amounted to NOK 1,515 million, an

improvement of 7.6%.

Orkla's Branded Consumer Goods business achieved 8.1% growth in operating

revenues and increased operating profit by 12.1%. Organic turnover growth was

2.0%.

"Orkla finished 2019 with a good quarter in which we achieved improvement in

both sales and profit. It is encouraging to see that we have strengthened our

performance compared to a weak fourth quarter in 2018. In Branded Consumer Goods

there was broad-based profit improvement," says Orkla President and CEO Jaan

Ivar Semlitsch.

Orkla Foods delivered a particularly positive performance in the Swedish market,

and there was continued growth for plant-based products. Orkla Confectionery &

Snacks made progress in both confectionery and snacks. Orkla Home & Personal

Care and Orkla Health contributed to turnover growth in Orkla Care. Orkla Food

Ingredients posted profit growth, mainly driven by acquisitions.

In the fourth quarter, Orkla purchased 20% of the Icelandic company Nói Síríus,

Iceland's leading chocolate and confectionery manufacturer. During the quarter,

Orkla Care took over the remaining 50% of the shares in the former joint venture

Anza Verimex Holding, which is market leader for the sale and distribution of

painting tools in the Netherlands and Belgium.

Hydro Power posted operating profit of NOK 72 million in the fourth quarter,

compared with NOK 132 million in the same period of 2018. The decline is mainly

due to lower production and a fall in power prices.

Profit from associates and joint ventures amounted to NOK 147 million, compared

with NOK -43 million in the corresponding quarter of 2018. The improvement was

primarily a result of good profit growth for Jotun. There was strong growth in

Protective Coatings, and Marine Coatings and Decorative Paints delivered a

positive performance. Orkla sold its stake in the Oslo Business Park property,

resulting in a gain of NOK 35 million.

The Group's other income and expenses totalled NOK -136 million in the fourth

quarter, the biggest items being related to the reorganisation of Orkla's

headquarters and other restructuring projects.

Orkla's profit before tax increased by 46% in the fourth quarter to NOK 1,487

million.

In 2019, Orkla increased its operating revenues by 6.8% to NOK 43,615 million.

Operating profit (EBIT adj.) grew by 6.5% in 2019, totalling NOK 5,088 million.

At year-end the Group had 18,348 employees.

Full-year earnings per share amounted to NOK 3.84, an increase of 19%. Adjusted

earnings per share rose by 17% to NOK 4.24.

Orkla's Board of Directors intends to propose a dividend of NOK 2.60 per share

for the 2019 financial year.

Orkla ASA

Oslo, 6 February 2020

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

(http://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 the Norwegian Securities Trading Act