Orkla Reports Fiscal 2021 Operating Revenue and Profit Growth

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Norwegian conglomerate Orkla reported 7.0% year-on-year growth in operating revenue to NOK 50.4 billion (€5.02 billion) in its 2021 financial year.

Adjusted operating profit rose 11.9% during the year to NOK 6.14 billion (610 million euros), which the company says is the highest on record.

Earnings per share, on an adjusted basis, amounted to NOK 5.17 in 2021, an increase of 2.6%.

Orkla’s board will propose a dividend of NOK 3.00 per share for the 2021 financial year, up 25 øre.

Orkla President and CEO Jaan Ivar Semlitsch said, “Orkla’s branded consumer goods business saw good revenue growth in 2021. We made several strategically important acquisitions and strengthened our positions in priority growth areas such as herbal products, consumer health and home care.

“Orkla has established a platform to generate sustainable, profitable growth with good cash flow that will also pay strong dividends to our shareholders in the years to come.”

Acquisitions

In 2021, Orkla spent NOK 7.03 billion (€700 million) on acquisitions, the largest being health and wellness company NutraQ, Indian spice company Eastern Condiments (67, 8%) and the Dutch pizza chain New York Pizza (75% interest).

Additionally, New York Pizza purchased German pizza chains Stückwerk, Flying Pizza and Pizza Planet in September and October.

Currently, Orkla has 663 franchise pizzerias, including 296 in Finland, 255 in the Netherlands and Belgium and 112 in Germany.

In January 2022, Orkla Health purchased 95% of the shares of Vesterålen Marine Olje, which produces various waste raw materials from white fish, used in the production of cod liver oil and other products.

Fourth quarter performance

In the fourth quarter, the company’s operating income rose 11.1% to NOK 14 billion (€1.4 billion), while pre-tax profit rose to NOK 1.8 billion. NOK (€180 million), up 42.7% year-on-year.

Orkla’s branded consumer goods unit reported operating revenue growth of 8.4% in the quarter.

Orkla Food Ingredients recorded organic revenue growth of 16.1%, while Orkla Confectionery & Snacks and Orkla Foods recorded organic growth of 5.5% and 4.1%, respectively.

© 2022 European supermarket magazine – your source for the latest A-Brands news. Article by Dayeeta Das. Click on subscribe register for ESM: European Supermarket Magazine.

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