Orkla Group continues growth despite higher raw material costs | Progresiv
Orkla has posted organic growth for the 13th consecutive quarter, with its operating profit increasing by 3%, reaching 125 million dollars. 
The company’s latest results reveal, however, that Orkla Foods posted a lower operating profit in the second quarter of 2017 than the same period last year as a result of increased raw materials prices. Publishing its latest figures, the Norwegian company also cited higher advertising expenditure as a reason for its reduced operating profit.
Orkla president Peter A. Ruzicka said: “We saw a rise in raw material prices for meat and dairy products in the EU this quarter, in addition to a weaker krone in Norway and Sweden.
“Our goal is to compensate for this by raising the prices of our finished products, but the price increases will have a gradual effect. We will also continue to improve our own operational efficiency.”
The total value of acquisitions made by the group during the quarter was 65 million dollars. In May, Orkla Food Ingredients acquired an 80% stake in Danish distribution company SR Food, aiming to bolster its position as a supplier of organic and vegetarian foods.
Meanwhile Orkla Food acquired all of the shares in Laan Heiloo, which supplies ingredients and accessories to the ice cream market. (www.foodbev.com)
