Q2 2025 Orkla ASA Earnings Call Transcript
Key Points
- Orkla ASA (ORKLF) achieved an organic growth of 3.8%, primarily driven by price increases and a return to volume growth.
- Orkla Food Ingredients delivered a strong quarter with top-line growth and successful cost program implementation in the Sweet cluster.
- Orkla India reported an impressive underlying EBIT adjusted growth of 20%, excluding government grants.
- The group's operating revenue rose by 5% year-over-year, driven by organic sales growth in the consolidated portfolio companies.
- Orkla Snacks achieved organic growth of 4.3%, with positive contributions from biscuits and snacks.
- Orkla Health had a weak quarter with a 21% decline in underlying EBIT, driven by volume mix declines and high cod liver oil prices.
- The decline in net profit versus last year was mainly due to timing of tax expense recognition between the first and second quarter.
- Cash flow from operations in the first half declined by NOK0.4 billion year-over-year due to increased net working capital and higher net replacement investments.
- Orkla Snacks faced continued pressure from high cocoa prices, impacting profitability despite flat underlying EBIT adjusted.
- Orkla Foods experienced a 1.8% decline in underlying EBIT adjusted due to lower activity levels in key categories in the Norwegian market and increased advertising spend.
(technical difficulty) begin the presentation today, our President and CEO, Nils Selte, will be presenting some highlights from the quarter as well as from the first half year. After that, EVP and CFO, Arve Regland, will be presenting some more detail into the financials. Once he is done, Nils will return for a few concluding remarks.
After all the presentations are over, we will be going over to our Q&A. We're going to begin our Q&A as a video Q&A with our analyst community before we go over to taking questions from the web. So if you're interested in sending any questions, you may do so at any time during the presentation, and I will read those up at the end.
So with that all out of the way, let me hand it over to you, Nils.
Thank you, Annie, and good morning to everyone. Overall, we continued to progress according to our Capital Markets Day targets. Organic growth was 3.8%, came
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