Orkla Sees Profit Growth in Q1

Orkla’s operating profit increased by 13.5% to EUR129,8m in the first quarter, with the operating profit for Branded Consumer Goods rising by 9.5%. Group operating revenues amounted to EUR1,15bn, similar to the result of 2020’s first quarter. Organic growth for Branded Consumer Goods was 0.5%, compared with a very good first quarter last year. Orkla Confectionery & Snacks made progress, primarily due to high market growth in the grocery sector. Orkla Food Ingredients also had positive profit growth, driven by acquisitions and lower fixed costs. Orkla Foods experienced a decline in profit, mainly due to the substantial consumer stockpiling that took place in March 2020, according to a company statement.

“The start of 2021 for Orkla’s Branded Consumer Goods business has been very positive. We achieved strong profit improvement and organic growth, despite facing strong comparables as a result of consumer stockpiling of food and cleaning products in the corresponding period of 2020. The first quarter was also impacted by the COVID-19 pandemic. There was good market growth in the grocery sector, but activity was still lower in the Out of Home sector. The outlook in most of our home markets is now brighter. Now that vaccination is underway, we can look forward to further easing of infection control restrictions,” Orkla President and CEO Jaan Ivar Semlitsch said.