Orkla tjente 2,15 milliarder før skatt

Orkla reported a profit of 2.15 billion Norwegian Kroner before taxes in the second quarter, a decline of nearly one billion compared to the same period last year. Analysts had anticipated 17.7 billion Kroner in earnings, according to Bloomberg. The company is behind a range of brands in food and everyday essentials, including Grandiosa, Stabburet, Kims, Nidar, Jordan and Zalo.

Orkla also holds a significant stake in paint producer Jotun and a food business in India listed on the Mumbai Stock Exchange. This is the first full quarter since the former CEO and largest shareholder, Stein Erik Hagen, stepped down in May. Daughter Caroline Marie Hagen Kjos now leads the company. The decline is attributed to currency effects, with the Norwegian Krone strengthening.

Organic growth was almost flat, while currency pulled down revenues by 5.5 percent. Net income before taxes came to 2.15 billion Kroner, in line with expectations. Orkla's CFO, Nils K. Selte, stated that growth in the quarter was lower than their ambitions. However, he is satisfied with Jotun's deliveries. Jotun, a paint producer, has a presence in several countries in the Middle East, which Selte hoped would have fewer negative effects when he presented the quarterly figures last May.

Looking ahead to the rest of the quarter, Jotun delivered 11 percent higher revenues and 21 percent better operating results, adjusted for currency effects. Selte noted that Jotun has once again delivered strong results in a demanding market and quickly adapted to the extraordinary challenges posed by the conflict in the Middle East.

Orkla paid 6 billion Kroner in dividends to shareholders in the quarter. In July, the company completed a share buyback program for its own shares, after buying them for 4 billion Kroner since November last year.