The following is a summary of the Orkla ASA (ORKLY) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Orkla ASA reported an adjusted earnings per share of NOK1.66 for Q2, marking a 7% increase from the previous year.

• The Group's EBIT adjusted growth was 13%, driven by a 22% improvement in consolidated portfolio companies.

• Net profit after tax to Orkla shareholders reached NOK2 billion, up 7% compared to Q2 of the previous year.

• The rolling 12-month EBIT adjusted margin for consolidated portfolio companies increased to 9.7%.

• Total cash flow from operations year-to-date amounted to NOK3.2 billion, an improvement from NOK2.1 billion in the same period last year.

Business Progress:

• Orkla Foods Europe achieved 19% underlying EBIT adjusted growth due to restructuring programs and effective category management.

• Orkla Confectionery & Snacks gained market share with improved service levels and operational efficiencies in the new biscuit factory.

• Orkla Food Ingredients, despite challenging conditions in the sweet ingredients cluster, has launched mitigating actions to improve performance.

• The evaluation of Hydro Power assets and Orkla India's IPO readiness study are ongoing.

• Sales of Lilleborg to Solenis and partnerships have been finalized as part of the portfolio complexity reduction.

Opportunities:

• Orkla continues to focus on organic growth within its existing portfolio, highlighting efforts towards financial engineering and strategic restructuring for long-term value creation.

Risks:

• The fluctuating cost of cocoa remains a concern for future volumes in Confectionery & Snacks, raising potential risks due to price volatility.

More details: ORKLA ASA SPON ADR EACH REP 1 COM SHS CL A IR

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