Improvement for Orkla's Branded Consumer Goods
(Thomson Reuters ONE) -
Orkla's operating profit (EBITA) amounted to NOK 596 million in the first
quarter of 2013, compared with NOK 676 million in the corresponding period of
2012. Operating profit for Orkla's Branded Consumer Goods business rose 8% to
NOK 579 million. Operating profit from the acquired company Jordan accounted for
around half of this improvement.
For continuing operations, Orkla's operating revenues totalled NOK 7,219
million, compared with NOK 7,069 million in the corresponding period of last
year. The Branded Consumer Goods business reported underlying operating revenues
on a par with the first quarter of 2012.
"Although I am satisfied with the profit performance of several of our
companies, we need to strengthen our competitiveness. We must create larger,
more effective entities. We are now merging our chocolate, snacks and biscuits
companies, and creating one leading company per country in the Nordic region.
Now that the competition authorities have approved our acquisition of Rieber &
Søn, we will similarly establish a single food company in each of the Nordic
countries," says Orkla President and CEO Åge Korsvold.
The Branded Consumer Goods business
Orkla Foods achieved broad-based sales and volume growth in the grocery market,
but delivered a slightly weaker performance in the out-of-home sector. Operating
profit amounted to NOK 226 million, an improvement of 12%. Both Procordia and
Abba Seafood in Sweden reported good sales and profit growth. To further
strengthen their position, these two companies have merged to create a leading
Swedish food company. In Norway, Stabburet continued to improve its performance
in the grocery market. Beauvais foods posted profit growth in a demanding Danish
market. Felix Abba in Finland increased its sales in the grocery market, while
the Baltic businesses achieved both revenue and profit growth. Overall market
shares were maintained.
Orkla Confectionery & Snacks experienced a weaker trend. First-quarter operating
profit amounted to NOK 144 million, compared with NOK 169 million in the same
period of 2012. Competition on the Nordic snacks market is strong, and the
biscuits business saw a decline in Norway and Sweden. Higher sales of "pick and
mix" sweets contributed to a certain improvement in profit for Nidar. All in
all, market shares weakened slightly.
Orkla Home & Personal achieved operating profit of NOK 214 million, an
improvement of 8%. Profit growth was ascribable to Lilleborg in Norway, Pierre
Robert Group in Norway and Sweden, and Axellus (primarily in the Nordic region).
Jordan, which is Nordic market leader in the oral hygiene sector, is well
integrated with Lilleborg. Overall market shares were strengthened.
Orkla International posted an operating loss of NOK 42 million, compared with an
operating loss of NOK 37 million in the first quarter of 2012. Orkla Brands
Russia saw a decline in sales. The company is undergoing a major time-consuming
restructuring process. It is reducing its factories from four to three, and the
number of its product lines from 1100 to 600. MTR Foods, on the other hand,
increased its operating revenues by 12%. New product launches boosted volume in
the company's core categories, powder mixes and spice mixes.
Orkla Food Ingredients (OFI) posted operating profit of NOK 37 million, up from
NOK 30 million in the corresponding period of last year. This improvement is
attributable to the sale of Kolding Salatfabrik in Denmark. Cold weather had a
negative impact on the sale of bakery and ice cream ingredients in Scandinavia.
OFI maintained or strengthened its most important market positions in the
quarter.
Other businesses
Sapa Heat Transfer reported operating profit of NOK 85 million, an improvement
of 20%. This increase is due to a comprehensive improvement programme consisting
of cost reductions, operational initiatives and price adjustments. Deliveries to
the European automotive industry declined, while the North American market
remained at the same level as in 2012. Growth in the Chinese automotive market
accelerated. Orkla is engaged in exclusive talks with one strategic buyer for
Sapa Heat Transfer.
Operating profit for Orkla Financial Investments was NOK 8 million, compared
with NOK 108 million in the first quarter of 2012. Last year's first quarter
results were boosted by particularly high gains on the sale of real estate.
Hydro Power posted an operating loss of NOK 3 million, compared with operating
profit of NOK 33 million in the same quarter of last year. The fall in profit is
mainly due to lower volume production as a result of extremely dry winter months
and to a scheduled maintenance halt in Sauda (Norway).
Operating profit for Jotun, which is an associated company, continued to show
good growth, while sales were on a par with the first quarter of 2012. New ship
building activity in Asia is at a low level, but this effect was counteracted by
the continued good performance of the other segments.
Orkla continued to sell off shares and financial assets in the first quarter,
freeing up a net total of NOK 677 million in capital. The market value of the
Group's shares and financial assets, including the investments in REC and
Borregaard, totalled NOK 3,169 million at the end of the first quarter.
Discontinued operations
Orkla and Hydro wish to jointly establish a leading global supplier of aluminium
solutions. A decision by the European competition authorities regarding approval
of this joint venture will be reached by 14 May 2013.
The part of Sapa that is to be included in the joint venture with Hydro posted
first-quarter operating profit of NOK 46 million, compared with NOK 122 million
in the corresponding period of 2012.
Profit has been strongly impacted by weak European markets, while profit
performance in North America was positive. The Asian business is undergoing a
phase of establishment and expansion.
Orkla's pre-tax profit amounted to NOK 900 million, compared with a
corresponding NOK 1,154 million in the first quarter of 2012.
Orkla ASA
Oslo, 2 May 2013
Ref.:
EVP Corporate Communications and Corporate Affairs
Håkon Mageli
Tel: +47 928 45 828
SVP Investor Relations
Rune Helland
Tel: +47 22 54 44 11 / +47 977 13 250
An Excel file with key figures is available at www.orkla.com
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
1st Quarter 2013:
http://hugin.info/111/R/1698127/559900.pdf
Presentation of 1st Quarter 2013:
http://hugin.info/111/R/1698127/559890.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Orkla ASA via Thomson Reuters ONE
[HUG#1698127]
Unternehmensinformation / Kurzprofil:
Datum: 02.05.2013 - 07:02 Uhr
Sprache: Deutsch
News-ID 255314
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contact information:
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Kategorie:
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