Orkla has posted organic growth for the 13th consecutive quarter, with its operating profit increasing by 3%, reaching NOK 1,025 million ($125 million).
The company’s latest results reveal, however, that Orkla Foods posted a lower operating profit in the second quarter of 2017 than the same period last year as a result of increased raw materials prices. Publishing its latest figures, the Norwegian company also cited higher advertising expenditure as a reason for its reduced operating profit.
Orkla president Peter A. Ruzicka said: “We saw a rise in raw material prices for meat and dairy products in the EU this quarter, in addition to a weaker krone in Norway and Sweden.
“Our goal is to compensate for this by raising the prices of our finished products, but the price increases will have a gradual effect. We will also continue to improve our own operational efficiency.”
The total value of acquisitions made by the group during the quarter was NOK 531 million ($65 million). In May, Orkla Food Ingredients acquired an 80% stake in Danish distribution company SR Food, aiming to bolster its position as a supplier of organic and vegetarian foods.
Meanwhile Orkla Food acquired all of the shares in Laan Heiloo, which supplies ingredients and accessories to the ice cream market.
© FoodBev Media Ltd 2017