The following is a summary of the Orkla ASA (ORKLY) Q4 2023 Earnings Call Transcript:
Financial Performance:
Orkla ASA saw a 6% rise in adjusted earnings per share to NOK5.78.
The proposed dividend from Jotun, a portfolio company, was NOK2.2 billion, Orkla's share amounting to approximately NOK950 million.
Underlying EBIT adjusted growth for portfolio companies hit 7% for the year and cash conversion improved to above 100%.In Q4 2023, earnings of NOK1.3 per share remained constant compared to Q4 2022.
A total dividend for 2023 of NOK6 per share is proposed, including an additional NOK3 due to excess capital from the sale of 40% of Orkla Food Ingredients and a higher dividend from Jotun.
Business Progress:
Orkla evolved into an industrial investment company, focusing on brands and consumer space in 2023.
Return on capital employed of 10% in 2023, is expected to increase to 13% by the end of 2026.
Positive developments in volume, input cost, and market share were achieved despite tough consumer markets and the geopolitical environment.
Emphasis going forward will be on improving organic value creation, reducing complexity, and pursuing value-adding structural transactions.
Anticipated easing pressures on volumes and input costs kindle growth optimism.
Notable volume growth was reported in most portfolio companies, particularly in Orkla Foods Europe.
Value creation potential of NOK45 billion over the next two years is notable, dependent on margin improvement from 2024.
An easing in raw material prices is expected to improve the company's financials in 2024.
More details: ORKLA ASA SPON ADR EACH REP 1 COM SHS CL A IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
