Q2 2026 Orkla ASA Earnings Call Transcript
Key Points
- Jotun delivered another strong quarter with 11% underlying revenue growth and 21% underlying profit growth, driven by higher volumes across all segments and regions.
- Adjusted earnings per share increased by 3% to NOK1.60, supported by a 70% increase in profit from Jotun and lower tax and financing costs.
- Orkla completed a NOK4 billion share buyback program in July, demonstrating continued commitment to capital allocation priorities.
- Strategic acquisitions, such as Orkla Snacks' purchase of the European Candy Group and Orkla Foods' acquisition of a 40% stake in Group, strengthen existing categories and support long-term growth.
- Orkla Snacks' Bubs line is now available in approximately 60,000 stores in the US through its partnership with Mount Franklin Foods, expanding its market reach.
- Consolidated portfolio companies had flat organic top line growth and only 2.5% EBIT growth, which management is not satisfied with.
- Volume/mix declined 1.3% across the consolidated portfolio, with price increases offset by lower volumes in several portfolio companies.
- Orkla Food Ingredients saw a broad-based decline in underlying EBIT due to lower volumes and a cost base too high relative to activity levels, with mitigating actions not expected to have significant impact until next year.
- Orkla Health's underlying EBIT declined 5.8%, impacted by higher operational costs, lower profitability in Omega-3, and increased advertising costs, with factory closures weighing on results through 2027.
- Return on capital employed declined slightly, reflecting slower EBIT growth, and management noted this is the most challenging of the three financial targets.
Welcome to the presentation of Orkla's second quarter results. My name is Annie Bersagel, and I'm the Head of Investor Relations and Communications. Our President and CEO, Nils Selte, will be unable to join us today due to previously planned travel. So our CFO, Arve Regland, will be holding both the presentation and the Q&A. Now before I turn it over to Arve, I just want to remind everyone that we're going to begin with the video Q&A with our analysts.
And after that, we will turn over to questions from the web. So if you have a question, please feel free to submit that at any time, and we will take those at the very end.
So with that out of the way, I will hand the floor over to Arve.
Thank you, Annie, and good morning, everyone. So Orkla's consolidated portfolio companies had a flat organic top line development quarter and a 2.5% EBIT growth.
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