Norwegian conglomerate Orkla has 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%.
Operating revenue for the period came in at NOK 16.2 billion (€1.4 billion), a 22% increase.
Branded Consumer Goods
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.
Five out of six business areas within Branded Consumer Goods showed profit growth, the company said, while high costs related to the start-up of a new biscuit factory weighed on profit in the Orkla Confectionery & Snacks division.
Read More: Orkla Acquires Nordic Confectionery Firm Bubs Godis
'Increased Inflation'
Commenting on the business' performance, Orkla president and CEO Nils K. Selte said that he was "pleased" with the group's first-quarter results, despite the current economic challenges.
"Increased inflation and rising interest rates have reduced consumer purchasing power in most of our markets, in turn putting pressure on our sales volumes," he said.
"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."
The group also announced two new members of the board of directors of its Orkla Foods Europe business, with Xavier Belison and Kjersti Hobøl appointed as chairman and member, respectively.
Read More: Orkla To Acquire Hungarian Sandwich Maker Khell-Food
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