The following is a summary of the Orkla ASA (ORKLY) Q2 2024 Earnings Call Transcript:
Financial Performance:
Orkla ASA reported an adjusted earnings per share of NOK1.66 for Q2, marking a 7% increase from the previous year.
The Group's EBIT adjusted growth was 13%, driven by a 22% improvement in consolidated portfolio companies.
Net profit after tax to Orkla shareholders reached NOK2 billion, up 7% compared to Q2 of the previous year.The rolling 12-month EBIT adjusted margin for consolidated portfolio companies increased to 9.7%.
Total cash flow from operations year-to-date amounted to NOK3.2 billion, an improvement from NOK2.1 billion in the same period last year.
Business Progress:
Orkla Foods Europe achieved 19% underlying EBIT adjusted growth due to restructuring programs and effective category management.
Orkla Confectionery & Snacks gained market share with improved service levels and operational efficiencies in the new biscuit factory.
Orkla Food Ingredients, despite challenging conditions in the sweet ingredients cluster, has launched mitigating actions to improve performance.
The evaluation of Hydro Power assets and Orkla India's IPO readiness study are ongoing.
Sales of Lilleborg to Solenis and partnerships have been finalized as part of the portfolio complexity reduction.
Opportunities:
Orkla continues to focus on organic growth within its existing portfolio, highlighting efforts towards financial engineering and strategic restructuring for long-term value creation.
Risks:
The fluctuating cost of cocoa remains a concern for future volumes in Confectionery & Snacks, raising potential risks due to price volatility.
More details: ORKLA ASA SPON ADR EACH REP 1 COM SHS CL A IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
