Fourth-quarter performance
Orkla delivered a stronger finish to the year, reporting fourth-quarter organic sales growth of 4.5% across its Consolidated Portfolio Companies, above analyst expectations of 4.1%. Revenue for the quarter rose 3.6% to NOK 18,660 million, roughly 1% ahead of consensus estimates. The company noted a 0.9% negative effect from M&A activity, while foreign exchange effects contributed positively by 1%.
Profitability and earnings
The group saw its adjusted EBIT margin expand by 120 basis points to 10.3%, topping analyst expectations of 9.4%. Adjusted EBIT amounted to NOK 1,920 million, which was 10% higher than consensus. Adjusted earnings per share reached NOK 1.74, coming in about 30% above analyst projections.
Division breakdown
- Snacks: The Snacks division was the standout performer, recording 7% organic sales growth versus expectations of 4.4%. The division benefited from pricing growth of 5.3%, with chocolate products specifically highlighted. Management also pointed to a successful relaunch of Taffel in Finland and sustained demand for BUBS products, including in the US market.
- Food Ingredients: This segment outperformed expectations with organic growth of 8.3%, compared with a 6.3% consensus. The result was supported by 3.8% volume and mix growth and a strong showing in the Sweet category.
- Orkla Foods Europe: This division underdelivered relative to forecasts, posting just 0.4% organic growth against an expected 2.2%, a shortfall partly attributed to reduced campaign activity in Norway.
Outlook and strategic focus
Looking ahead to 2026, Orkla's management signalled that the company will prioritize stronger volume growth and cost efficiencies. Management also expects input-cost headwinds to affect the Foods and Health divisions, while anticipating tailwinds for the Snacks business.
Note: This article presents the company-reported figures and management guidance as provided.