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2016-02-11

Orkla ASA: Turnover growth and good profit improvement at Orkla

Orkla's operating profit (EBIT adj.) rose by 9%, to NOK 1,102 million in the
fourth quarter of 2015. Profit before tax increased by 87%, to NOK 946
million.

Fourth-quarter operating profit for Orkla's branded consumer goods business
totalled NOK 1,195 million, an improvement of 17%. Orkla Foods and Orkla
Confectionery&Snacks made particularly strong contributions to profit growth.
The improvement was ascribable to positive contributions from acquisitions,
new product launches and the effects of internal improvement projects. In the
fourth quarter, the branded consumer goods business achieved operating
revenues of NOK 9,314 million and organic turnover growth of 4.1%.

"For the seventh consecutive quarter, we have succeeded in achieving organic
turnover growth in highly competitive markets. All of the business areas
reported growth. I am also pleased with a currency-adjusted profit
improvement for the branded consumer goods business that exceeds our
long-term target of 6-9%. In addition, we made several important acquisitions
in 2015 that will strengthen our operations going forward,"
says Orkla President and CEO Peter A. Ruzicka.

Orkla's purchase of Cederroth was approved by the competition authorities in
August, on condition that the Asan and Allévo brands were sold. In December,
agreements were entered into on the sale of both brands. Through the
acquisition of Cederroth, Orkla has become one of the Nordic region's leading
suppliers of personal care, health, wound care and household cleaning
products.

In December, Orkla concluded an agreement to purchase the Hamé food company,
which has a number of strong brands in the Czech Republic, Slovakia and
Romania. The acquisition of Hamé has doubled Orkla's turnover in Central
Europe. The agreement is contingent upon the approval of relevant competition
authorities.

Profit from associates and joint ventures (mainly Sapa and Jotun) amounted to
NOK 89 million in the fourth quarter, compared with NOK -252 million in the
same quarter of 2014. Orkla's share of profit from Sapa totalled NOK 17
million in the quarter. Jotun achieved turnover growth in all its market
segments, but reported profit was affected by non-recurring
accounting-related expenses.

Lower power prices had a negative impact on Hydro Power's results, and
fourth-quarter operating profit amounted to NOK 49 million, compared with NOK
73 million in the corresponding period of 2014.

Diluted earnings per share rose in the fourth quarter, from NOK -0.06 to NOK
0.73.

For the full year 2015, Orkla's operating revenues increased by 12%, to NOK
33,198 million. Operating profit (EBIT adj.) rose by 12% in 2015, to NOK
3,609 million. At year end, the Group had 14,670 employees. The Board of
Directors of Orkla ASA proposes to pay a dividend of NOK 2.50 per share for
the 2015 financial year.

Orkla ASA
Oslo, 11 February 2016

Ref.:
Group Director Corporate Communications and Corporate Affairs

Håkon Mageli
Mob.: +47 928 45 828

SVP Investor Relations

Mattias Orrenius
Mob: +47 983 66 334

An Excel spreadsheet with key figures is available at
www.orkla.com

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

4th Quarter 2015
http://hugin.info/111/R/1985271/728046.pdf
Presentation of 4th Quarter 2015
http://hugin.info/111/R/1985271/728047.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Orkla ASA via Globenewswire

HUG#1985271

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