Orkla (ORK) investor relations material

Executive summary

• Organic growth reached 4.9% year-over-year in consolidated portfolio companies, with all segments contributing, especially Orkla Food Ingredients, Snacks, Foods, and Jotun.

• Underlying EBIT (adj.) grew by 3.0%, with adjusted EPS rising 4.2% to NOK 1.75.

• Operating revenues increased by 1.3% to NOK 17,401 million.

• The Middle East conflict had limited direct Q1 impact but is expected to introduce greater uncertainty and cost pressures in coming quarters.

• The passing of Chairman Stein Erik Hagen marked a significant leadership transition, with Gilles Morel and Liselott Kilaas appointed to key board roles.

Financial highlights

• Adjusted EBIT for Q1 was NOK 1,736 million, slightly down year-over-year due to currency effects and fewer real estate deliveries.

• Profit attributable to owners was NOK 1,689 million.

• Cash flow from operations was NOK 1.1 billion, down year-over-year due to higher working capital and investments.

• Net interest-bearing debt decreased to NOK 13.6 billion (1.3x EBITDA, 0.8x excluding Orkla Food Ingredients).

• Adjusted EPS (diluted) increased by 4.2% to NOK 1.75.

Outlook and guidance

• Upward pressure on energy, freight, packaging, and raw material costs is expected, especially due to the Middle East conflict.

• EBIT (adj.) margin was 10.5% on a rolling 12-month basis, within target range.

• Return on capital employed stable at 12.4%.

• Management targets 8-10% underlying EBIT (adj.) CAGR for 2023-2026 and EBIT margin of 10.5-11%.

• Indirect effects from geopolitical tensions and input cost increases are being closely monitored.