Orkla’s portfolio companies report profit improvement

Orkla’s consolidated portfolio companies (incl. Orkla ASA) increased EBIT (adj.) for the fourth quarter by 11% to NOK 1.6 billion. Orkla’s board of directors intends to propose a total dividend for the accounting year 2024 of NOK 10 per share. Orkla also announces the sale of 100% of the shares in Pierre Robert Group.

Orkla’s turnover increased in the fourth quarter by 6% to NOK 18.8 billion mainly related to volume growth and price increases for the consolidated portfolio companies, in addition to apartment deliveries in Orkla Real Estate. Orkla group EBIT (adj.) was NOK 2.0 billion for the period. Orkla’s “other income and expenses” amounted to minus 197 million, primarily related to write-downs of NOK 121 million in Pierre Robert Group.

“Orkla’s good performance continued in the fourth quarter. We achieved solid EBIT (adj.) growth, improved operating margins and increased cash flows in our consolidated portfolio companies. It is encouraging that most of our companies have delivered organic revenue growth and continued to invest to strengthen their market positions through a significant increase in advertising spend,” says Orkla President and CEO Nils K. Selte.

Profit from Orkla’s 42.7% ownership share in Jotun was NOK 370 million. The result was driven by continued good sales momentum across all segments and EBITA growth of 17%.

Profit before tax totalled NOK 1.9 billion, a year-over-year increase of 45%.

Financial results 2024
In 2024, Orkla’s consolidated portfolio companies (incl. Orkla ASA) achieved EBIT (adj.) of NOK 7.0 billion. This is an improvement of 17% from 2023.

For the full year, Orkla’s turnover increased by 4% to NOK 70.7 billion. Profit from associates amounted to NOK 1.9 billion, in line with 2023. Profit before tax was NOK 8.1 billion, and earnings per share (adj.) was NOK 6.44, an increase of 11%.

“Our first priority is to drive organic value in the existing portfolio. During every quarter of 2024, underlying EBIT (adj.) growth, EBIT (adj.) margins, and return on capital employed improved in line with our targets for the strategy period. We have also continued to simplify the portfolio to build a platform for future growth,” says Selte.

Dividend proposal
On the back of increased cash flows, solid balance sheet and the sale of Orkla’s hydro power assets, the Board of Directors intends to propose an increase in the ordinary dividend to NOK 4.00 per share for 2024, and an additional dividend of NOK 6.00 per share.

Reducing portfolio complexity
Since the Capital Markets Day in November 2023, Orkla has taken several steps to reduce complexity in the existing portfolio in line with Orkla’s strategy to become an industrial investment company. These include the partnership with Rhône for Orkla Food Ingredients, as well as the sale of Lilleborg to Solenis. In January 2025, Orkla entered into an agreement to sell its hydro power portfolio.

Sale of Pierre Robert Group
Orkla has entered into an agreement to sell 100% of the shares in Pierre Robert Group (PRG) to Jotunfjell Partners. PRG sells basic textiles and woolen garments in Norway, Finland and Sweden. The transaction values PRG at NOK 23 million on a cash and debt-free basis. Upon closing, Orkla will have an estimated accounting loss of NOK 40 million from the sale. The agreement is conditional on approval by Norwegian competition authorities.

About Orkla ASA
Orkla ASA is a leading industrial investment company. Its scope of activity is brands and consumer-oriented companies. At present, Orkla has 11 portfolio companies operating in segments including paints, food, chocolate, sweets and snacks, health products and food ingredients. In 2024, Orkla generated revenues of NOK 70.7 billion and achieved a pre-tax profit of NOK 8.1 billion. The Orkla Group has approximately 20,000 employees. Orkla is headquartered in Oslo, Norway, and is listed on the Oslo Stock Exchange.

Orkla ASA

Oslo, 13 February 2025 Ref.:

SVP Investor Relations & Communication
Annie Bersagel Tel.: +47 986 03 664

VP Financial Communication
Joachim Gresslien Tel.: +47 907 25 018