Orkla ASA — Earnings Release 2023

May 9, 2023

Profit improvement for Orkla

Profit improvement for Orkla

Orkla had a solid improvement in both profit and revenues in the first quarter.

Profit before tax amounted to NOK 1.7 billion, a year-over-year increase of 12%.

Operating profit EBIT (adj.) rose by 5% to NOK 1.6 billion. The group's first

-quarter operating revenues totalled NOK 16.2 billion, equivalent to 22% growth.

Orkla's Branded Consumer Goods business increased its operating revenues by 23%

to NOK 15.8 billion in the first quarter. There was 13% organic turnover growth,

driven by price increases to compensate for higher costs in the value chain.

Branded Consumer Goods, including Headquarters, increased its operating profit

EBIT (adj.) by 14% to NOK 1.35 billion in the first quarter. Five out of six

business areas showed profit growth. High costs related to the start-up of a new

biscuit factory weighed on profit for Orkla Confectionery & Snacks.

Orkla's profit from associates and joint ventures rose by 77% to NOK 422 million

in the first quarter. The entire increase can be linked to Jotun, in which Orkla

has a 42.7% interest. Jotun increased its operating revenues by 24% to NOK 7.8

billion. Sales improvement was particularly strong in the Decorative, Marine and

Protective segments. Operating profit EBITA rose by 81% to NOK 1.6 billion,

driven by improved gross margin, volume growth and good cost control.

Hydro Power's operating profit EBIT (adj.) amounted to NOK 255 million in the

first quarter, compared with NOK 345 million in the same quarter of 2022. The

decline is chiefly due to lower power prices, year over year, and the effects of

a new windfall tax (high-price contribution) on power production that was

introduced in September 2022.

Adjusted earnings per share were NOK 1.32 for the first quarter, an increase of

6%.

"I am pleased with the first quarter results. Orkla can point to high organic

growth and profit improvement. Jotun and Orkla Food Ingredients have delivered a

particularly strong performance. Increased inflation and rising interest rates

have reduced consumer purchasing power in most of our markets, in turn putting

pressure on our sales volumes. Even though there is great uncertainty as regards

future economic trends, we have strong brands and robust value chains. I

therefore look forward with cautious optimism. Orkla will continue to increase

its investments in brand-building, while continuously seeking opportunities to

improve costs," says Orkla President and CEO Nils K. Selte.

"On 1 March we implemented our new business model with 12 autonomous portfolio

companies. Orkla has become an industrial investment company, with focus on

strong brands and consumer-oriented companies. We are making good progress on a

comprehensive strategy process to ensure that the potential in each company is

fully exploited. The composition of most of the Boards of Directors of the

various portfolio companies has now been determined. Today, I am happy to

announce the new composition of Orkla Foods Europe's Board of Directors, which

now includes solid external expertise," he adds.

Xavier Belison and Kjersti Hobøl have been appointed as chairman and member,

respectively, of the Board of Directors of Orkla Foods Europe. Mr Belison, who

is a French citizen, has top leader experience from Continental Foods, Heineken

and Mars. At present, he is Chairman of the Board of Directors of Groupe Panzani

and Partner in Pet Food. Ms Hobøl is CEO of Nille, and has previous top leader

experience from Kid, DNB and Princess. She is currently member of the Board of

Directors of Elektroimportøren, Aspelin Ramm, Byggmax and XXL Sport og Villmark.

In addition to Mr Belison and Ms Hobøl, Orkla Foods Europe's Board of Directors

will consist of Atle Vidar Nagel Johansen, Øyvind Torpp and Hege Holter Brekke,

all of whom are EVPs & Investment Executives at Orkla ASA. There will also be

two employee representatives, who have yet to be chosen. Orkla President and CEO

Nils K. Selte and CFO Harald Ullevoldsæter will sit on the Board as observers.

Orkla ASA

Oslo, 9 May 2023

Ref.:

EVP Communication and Corporate Affairs

Håkon Mageli, mob.: +47 928 45 828

Investor Relations Manager

Kjetil Sørum, mob.: +47 996 02 964

An Excel spreadsheet with key figures may be found at

https://investors.orkla.com/

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Kjetil Sørum, Investor

Relations Manager at Orkla ASA, on 9 May 2023 at 07:00 CEST.