Norwegian conglomerate Orkla has reported a 20% year-on-year increase in operating revenue, to NOK 17.1 billion (€1.5 billion), in the second quarter of its financial year.
Adjusted earnings per share rose by 17%, to NOK 1.55, the company added.
Despite good organic growth, most of its portfolio companies also reported a decline in volume.
The company's paint and powder coatings manufacturing business Jotun contributed NOK 533 million (€47.4 million), up 124% year-on-year, to Orkla's overall profit during the quarter.
Its performance was driven by volume growth, improved gross margin and good cost control, the company added.
'Pressure On Sales Volumes'
Orkla president and CEO, Nils K Selte said, "The costs of Orkla’s input factors were substantially higher than in the same period of 2022, and we have implemented price increases to compensate for this rise.
"Higher inflation and rising interest rates have reduced consumer buying power in most of our markets, which has in turn put pressure on our sales volumes."
Operating profit at Orkla’s hydro power business amounted to NOK 282 million (€25.1 million), down from NOK 579 million (€51.5 million) in the same period of 2022.
The decline is due to significantly lower power prices than in the second quarter of 2022, the company added.
The company reported a 12% increase in profit before tax, to NOK 1.7 billion (€150 million), in the first quarter of its financial year, with operating profit rising by 5%.
Its Branded Consumer Goods business, which includes a myriad of food and beverage brands, reported a 23% increase in operating revenue, while organic turnover was 13% higher, due to price increases to compensate for inflation.