Norwegian conglomerate Orkla has reported 13% year-on-year growth in adjusted operating profit, to NOK 2.0 billion (€170 million), in the second quarter of its financial year.
Orkla's profits before tax increased 43% year-on-year to NOK 2.6 billion (€220 million) during the quarter, the company added.
The company reported positive volume growth for the second successive quarter, while organic growth reached 3.3%.
Adjusted earnings per share in the second quarter increased 7% year on year, to NOK 1.66.
Commenting on its performance, Orkla president and CEO Nils K Selte, stated, “Orkla has successfully maintained its positive momentum from the first to the second quarter of the year.
“The portfolio companies achieved profit growth, a higher return on capital employed and increased cash flow from operations. We are also continuing to ramp up investment in advertising to secure long-term growth and value creation.”
Divisional Performance
The eight largest companies in Orkla’s portfolio all delivered underlying profit growth, the company noted.
Profit contribution by Jotun, the company's paint and powder coatings division, remained on a par with the second quarter of 2023, at NOK 528 million (€45 million).
The division reported broad-based sales growth in the marine, protective and powder segments, but also some negative currency translation effects.
Adjusted EBIT at the Hydro Power division amounted to NOK 248 million (€21.2 million), down from NOK 282 million (€24.1 million) in the year-ago period, due to reduced power prices.
During the quarter, Orkla gained NOK 472 million (€40.3 million) from the sale of 100% of its shares in Lilleborg – a supplier of hygiene and cleaning solutions to professional and industrial customers in Norway.
“The transaction is an important milestone, and consistent with our strategy of simplifying our structure and reducing the number of portfolio companies,” said Selte.
