Orkla's Branded Consumer Goods Businesses Posts 7% Profit Increase
The branded consumer goods businesses operated by Norwegian food conglomerate Orkla posted an operating profit gain of 7%, to NOK 1.12 billion (€120 million), in the second quarter of the company's financial year.
The group's Orkla Foods arm saw profits rise 13%, the company said, with its Orkla Confectionery & Snacks arm posting a profit increase of 12%, and Orkla Food Ingredients seeing profits rise 11%.
Its Orkla Care arm, saw a profit decline of 8%, however.
“Overall, we are satisfied with our second quarter performance," commented acting president and CEO Terje Andersen. "It is particularly gratifying to see the progress made by Orkla Foods and Orkla Confectionery & Snacks, which delivered broad-based growth at both top-line and bottom-line level."
Andersen added that a shift towards more profitable sales helped improve profits at Orkla Food Ingredients.
The Orkla Food Ingredients business strengthened its position during the quarter with the acquisition of majority shareholdings in Greek firm Stelios Kanakis, as well as UK confectionery maker Confection by Design and Swedish sales and distribution company Bo Risberg Import.
Orkla Foods Denmark was also busy on the M&A front, with the purchase of Easyfood, a Danish manufacturer of bake-off products, as well as the divestment of the Glyngøre brand to Amanda Seafoods.
Orkla’s overall operating revenues rose 5% to NOK 10.54 billion in the second quarter, the group said. Operating profit (EBIT adj.) reached NOK 1,109 million, on a par with the second quarter of 2018.
Profit before tax increased by 8% to NOK 1.18 billion in the second quarter of 2019.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.