Q1 2025 Orkla ASA Earnings Call Transcript
Key Points
- Orkla ASA (ORKLF) reported a 28% year-over-year increase in profit before tax, reaching 2.2 billion.
- Adjusted earnings per share improved by 19% to NOK1.68.
- The company achieved an underlying EBIT adjust growth of 7.6% with a margin improvement of 60 basis points year over year.
- Orkla ASA (ORKLF) successfully closed the divestment of Pierre Robert Group and the Hydropower portfolio, simplifying its portfolio.
- Cash flow from operations improved by 0.4 billion year-over-year to 1.6 billion, driven by EBIT adjust growth and net working capital reductions.
- Organic growth was only 1.2% for the quarter, with a negative impact from volume declines in Orkla Foods and Orkla Snacks.
- The tax rate for the first quarter was high at 26.8%, primarily due to withholding tax on dividends from Orkla India.
- Orkla Snacks faced challenges with high cocoa prices, impacting profitability and leading to a flat adjusted EBIT growth for the quarter.
- Orkla Foods experienced a 2.9% decline in organic growth, driven by a 3.8% decline in volume mix growth.
- The European Pizza Company saw a 1.6% decline in organic revenues, with weak consumer sentiment in certain markets affecting sales.
Good morning and welcome to the presentation of Orklo's first quarter results. My name is Annie Bersagel and I'm the Head of Investor Relations and Communications.
So due to previously planned travel, our president and CEO, Nils Selte, is unable to join us this morning. So instead, the EVP and CFO, Arve Regland, will be holding the presentation today. So after his presentation, we're going to be holding a video Q&A with our analyst community and after that, we'll be opening up for questions from the web.
So during the presentation, you are all welcome to send in questions via a web link, and this is open for everybody. And we'll take those after the video Q&A with the analysts. So with that underway, I'll leave the floor to you now, Arve.
Thank you, Annie. And good morning to everyone. Orkla's development for the quarter remained solid. Our portfolio
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