Q4 2024 Orkla ASA Earnings Call Transcript
Key Points
- Orkla ASA (ORKLF) reported a 17% underlying EBIT growth in its portfolio companies, indicating substantial improvements in profitability.
- The company improved cash flow from operations by NOK1.9 billion compared to 2023, driven by EBIT growth and better capital discipline.
- Orkla ASA (ORKLF) plans to increase the ordinary dividend for 2024 and propose an additional dividend of NOK6 per share due to solid performance and asset sales.
- The sale of Orkla's entire hydropower portfolio for NOK6.1 billion is expected to reduce complexity and align with the company's strategy.
- Orkla ASA (ORKLF) achieved organic growth of 3.3% in Q4, driven by volume, mix growth, and price increases, with a 13.4% growth in underlying EBIT for consolidated portfolio companies.
- The Pierre Robert Group has shown weak performance over several years, leading to its sale and strategic repositioning.
- Market prices for cocoa rose steeply during the quarter, impacting Orkla Snacks negatively due to limited short-term ability to pass on cost increases.
- Orkla Health faced pressure on contribution margins due to increased raw material prices, particularly for cod liver oil.
- Orkla India experienced flat organic growth in Q4, with challenges in domestic market sentiment and timing of financial incentives.
- The European Pizza Company saw a decrease in EBIT due to a write-down of receivables for a limited group of franchisees.
Good morning and welcome to Orkla's presentation of fourth-quarterr results. My name is Annie Bersagel, and I'm the Head of Investor Relations and Communication. Our President and CEO Nils Selte will begin with a summary of the quarter. After that, our CFO Arve Regland will share more details on the financials.
Before we move on to the Q&A, Nils will summarize the main messages for the quarter. So after the presentations, we will hold a video Q&A with our analyst community before we move on to questions from the web.
So during the presentation, you are welcome to submit questions and this is open for everyone, and we will take these after the video Q&A with analysts.
Just a quick note to avoid any confusion on some name changes. So in our financial statements, for the quarter you may notice that we refer to Orkla ASA as in the consolidated portfolio companies including Orkla ASA. This is the same concept as Orkla headquarters. It's just the name that that has changed.
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