The branded consumer goods business at Norwegian conglomerate Orkla posted 2.0% organic revenue growth in the fourth quarter of 2019, the group has announced, with adjusted operating profit up 11.3%.
Operating revenues for the quarter were NOK 11.47 billion (€1.13 billion), with the group citing a 'good performance' for its Orkla Foods and Orkla Confectionery & Snacks arms.
Profit at its Orkla Food Ingredients business was mainly driven by acquisitions, the group added.
'Encouraging' Performance
“Orkla finished 2019 with a good quarter in which we achieved improvement in both sales and profit," commented Orkla President and CEO Jaan Ivar Semlitsch. "It is encouraging to see that we have strengthened our performance compared to a weak fourth quarter in 2018. In Branded Consumer Goods there was broad-based profit improvement."
The fourth quarter saw Orkla purchase 20% of Icelandic confectionery business Nói Síríus, while its Orkla Care business took over the remaining 50% of the shares in Anza Verimex Holding, a painting tools business that mainly operates in the Netherlands and Belgium.
Orkla’s profit before tax increased by 46% in the fourth quarter to NOK 1.49 billion (€146 million).
For the year ahead, Orkla said that its 2021 targets remain 'unchanged', and that the business has made 'good progress' towards achieving these targets.
"Orkla has a solid portfolio of innovations in prioritised areas and we are seeing good contributions to growth from them," added Semlitsch. "A good example is the strong growth we are experiencing for plant-based innovations. Going forward it will be important to leverage our strong brands to further improve organic growth."
© 2020 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
