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• Underlying EBIT Growth: 17% increase in portfolio companies.

• Cash Flow from Operations: Improved by NOK1.9 billion compared to 2023.

• Organic Growth: 3.3% in Q4.

• Adjusted Earnings Per Share: Improved by 16% compared to the same quarter last year.

• Operating Revenues: Grew by 6% to NOK18.8 billion in Q4.

• Group EBIT: Grew by 25% to NOK2 billion.

• Rolling 12 Months EBIT Adjust Margin: 10.1% in Q4, an increase of 1.1 percentage points.

• Total Cash Flow from Operations (Full Year): NOK7.9 billion, an increase of NOK1.9 billion.

• Cash Conversion: Reached 114% at an aggregated level in 2024.

• Net Interest Bearing Debt: NOK16 billion, equal to 1.5 times EBITA.

• Dividend Proposal: Increase to NOK4 per share plus an additional NOK6 per share.

• Jotun Operating Revenue Growth: 15% increase in Q4.

• Orkla Foods Organic Growth: 1.1% in Q4.

• Orkla Snacks Organic Growth: 6.2% in Q4.

• Orkla Health Organic Growth: 6.2% in Q4.

• Orkla India Organic Growth: 3.6% in Q4.

• Orkla Home and Personal Care Organic Growth: 10% in Q4.

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Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Orkla ASA (ORKLF) reported a 17% underlying EBIT growth in its portfolio companies, indicating substantial improvements in profitability.

• The company improved cash flow from operations by NOK1.9 billion compared to 2023, driven by EBIT growth and better capital discipline.

• Orkla ASA (ORKLF) plans to increase the ordinary dividend for 2024 and propose an additional dividend of NOK6 per share due to solid performance and asset sales.

• The sale of Orkla's entire hydropower portfolio for NOK6.1 billion is expected to reduce complexity and align with the company's strategy.

• Orkla ASA (ORKLF) achieved organic growth of 3.3% in Q4, driven by volume, mix growth, and price increases, with a 13.4% growth in underlying EBIT for consolidated portfolio companies.

Negative Points

• The Pierre Robert Group has shown weak performance over several years, leading to its sale and strategic repositioning.

• Market prices for cocoa rose steeply during the quarter, impacting Orkla Snacks negatively due to limited short-term ability to pass on cost increases.

• Orkla Health faced pressure on contribution margins due to increased raw material prices, particularly for cod liver oil.

• Orkla India experienced flat organic growth in Q4, with challenges in domestic market sentiment and timing of financial incentives.

• The European Pizza Company saw a decrease in EBIT due to a write-down of receivables for a limited group of franchisees.