Orkla's consumer brands see 20% earnings growth | Progresiv
Orkla’s operating profit (EBIT adj.) increased 26% to 996 million Norwegian krone (106.4 million euros) in the second quarter of 2016. The branded consumer goods business had an operating profit of 982 million Norwegian krone (104.9 million euros), representing a 20% improvement. Orkla has been strengthened by a number of acquisitions and internal improvement projects. 
Orkla’s operating revenues increased by 22% in the second quarter, to 9,433 million Norwegian krone (1 billion euros). Organic turnover growth in the branded consumer goods business was 3.8%. All four business areas reported improvement in the quarter, both in operating revenues and in operating profit.
“For the ninth consecutive quarter we saw organic sales growth in the branded consumer goods business. Orkla had significant improvement in operating profit due to higher sales and internal improvement projects. In addition, demanding integration efforts are under way in the wake of several acquisitions. I am also very satisfied with developments in the aluminium company Sapa,” says Orkla President and CEO Peter A. Ruzicka.
Orkla has strengthened its presence in several markets lately. With the acquisition of Hamé, Orkla Foods is now one of the largest food products suppliers in the Czech Republic, Slovakia and Romania. The acquisition of Cederroth has made Orkla Care one of the Nordic region’s leading branded consumer goods suppliers in the cleaning and personal care categories.
The acquisition of Harris makes Orkla House Care the leading provider of Do-It-Yourself painting tools in the UK. This agreement is contingent on approval by UK competition authorities. The acquisition of four strong textile brands in Finland has given Pierre Robert Group a good platform in the Finnish grocery sector. Orkla Food Ingredients has become an increasingly important supplier of ice cream ingredients in the UK, Germany, Netherlands and the Nordic countries as a result of a number of acquisitions.
