Good revenue growth for Orkla

from Orkla operating revenue increased 11.1% in the fourth quarter NOK 14,027 million. The Group’s profit before tax amounts to NOK 1,841 millionan improvement of 42.7%. Operating profit EBIT (adj.) increased by 18.9%, to NOK 1,871 million.

Full-year operating revenue increased 7.0% to NOK 50,441 million. In 2021, operating profit EBIT (adj.) grew by 11.9% and amounted to NOK 6,145 million. This is the highest operating result EBIT (adjusted) ever recorded for Orkla.

In 2021, earnings per share (adjusted) was NOK5.17an increase of 2.6%. from Orkla The board of directors intends to propose that the dividend for the financial year 2021 be increased from 25 øre to NOK3.00 per share. At the end of the year, the Group had 21,423 employees and 114 factories in 22 countries.

“from Orkla the branded consumer goods business delivered good revenue growth in 2021. We made several strategically important acquisitions and strengthened our positions in priority growth areas such as plant-based products, consumer healthcare public and the Out of Home. Orkla has established a platform to generate sustainable and profitable growth with good cash flow that will also pay strong dividends to our shareholders in the years to come,” says Orkla President and CEO Jaan Ivar Semlitsch.

from Orkla the branded consumer goods business reported fourth quarter operating revenue growth of 8.4%. Organic revenue growth was 5.5%.

Orkla Food Ingredients recorded the strongest improvement with organic revenue growth of 16.1%. This line of business saw somewhat limited activity in the Out of Home channel in Q4 2020 due to the pandemic. Confectionery Orkla & Orkla Foods and Snacks posted organic growth of 5.5% and 4.1%, respectively, in the fourth quarter of 2021. Orkla Consumer Investments and Orkla Care, on the other hand, saw an organic decline of 5.7% and 1.2%, respectively. Both of these lines of business had comparables in the fourth quarter of 2020 that were positively impacted by the pandemic.

Income from associates and joint ventures amounted to NOK 105 million in the fourth quarter, compared to NOK 225 million in the same quarter of 2020. The decline was due to lower earnings contributions from Jotun. There was positive sales growth in all of Jotun’s market segments, but the extraordinary rise in raw material prices negatively impacted profitability.

Hydroelectricity reported operating profit EBIT (adj.) of NOK 415 million in the fourth quarter, compared to NOK 25 million Year after year. The increase is due to significantly higher electricity prices than in the same quarter of 2020. Long periods of low temperatures and high consumption contributed to high electricity prices.

The Group’s other income and expenses amount to NOK -88 million in the fourth quarter, compared to NOK -468 million during the same period of 2020, which included the recognition of substantial expenses and an impairment related to ERP projects.

from Orkla pre-tax income increased by 42.7% to NOK 1,841 million in the fourth trimester. Adjusted earnings per share were NOK1.40 for the quarter, a year-over-year decline of 2.1%.

In 2021, Orkla acquired companies for NOK 7,030 million. The largest acquisitions are health and wellness company NutraQ, Indian spice company Eastern Condiments (67.8% stake) and the Netherlands New York Pizza pizza chain (75% ownership).

Additionally, New York Pizza purchased German pizza chains Stückwerk, Flying Pizza and Pizza Planet in September and October. Orkla now has 663 franchised pizzerias, including 296 Finland255 in the Netherlands and Belgiumand 112 in Germany.

In January 2022, Orkla Health reached an agreement to purchase 95% of the shares of Vesterålen Marine Olje. The company has been an important supplier of raw materials for Möller’s Tran and is a strategically important acquisition for Orkla both in the health segment and in the sustainability segment.

Orkla ASA
Oslo, February 10, 2022

Ref. :

Group Director Corporate Communication and Corporate AffairsHakon Magelimobile: +47 928 45 828

SVP Investor Relations
Kari Lindtvedt, mobile: +47 950 75 114

An Excel spreadsheet showing key figures is available at https://investors.orkla.com/

This information is considered inside information under the EU Market Abuse Regulation and is subject to disclosure requirements under section 5-12 of the Norwegian Securities Act.

This stock Exchange announcement was posted by Kjetil Sørum, Head of Investor Relations at Orkla ASAto February 10, 2022 at 07:00 CEST.

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