Norwegian conglomerate Orkla has reported a 10.3% increase in operating revenues, to NOK 13.14 billion (€1.35 billion), in the third quarter of its financial year.
Operating profit for the period was up 9.0% to NOK 1.71 billion (€180 million).
Most of the group's segments reported growth during the period, with its Branded Consumer Goods arm seeing sales growth of 4.1%, boosted by the easing of coronavirus restrictions and strong sales in grocery retail.
Elsewhere, Orkla Food Ingredients saw organic growth of 7.3% in turnover, Orkla Confectionery & Snacks was up 2.2%, while Orkla Foods and Orkla Care achieved an improvement of 4.7% and 3.8%, respectively.
The group's Orkla Consumer Investments business experienced a decline of 1.7%, meanwhile, due to tough comparatives with the corresponding quarter the previous year.
Strong Growth Against Tough Comparables
“We are pleased to have delivered good organic growth in the third quarter against strong comparables from 2020," commented Orkla President and CEO Jaan Ivar Semlitsch.
"Four out of five business areas saw improvement, and we had volume growth in several sales channels. I am particularly satisfied that we are achieving good growth in our strategic growth areas: plant-based, out of home and health."
Value Chain Disruption
Semlitsch added that profit growth was limited during the quarter due to supply chain bottlenecks and value chain disruption arising from the COVID-19 pandemic.
"This situation, combined with increased demand, is resulting in considerable increases in raw material, packaging, transport and energy costs for us,” he added.
Orkla continued to make a number of strategic investments during the period, with the company purchasing health and wellness company NutraQ; a 67.8% interest in Indian spice company Eastern Condiments, and a 75% interest in Dutch pizza chain New York Pizza.