Brief: Orkla Q3 Adjusted EBIT NOK 2,223 Mln, Just Below Estimates

Orkla ASA

27/10/2022 06:10

Oct 27 (Reuters) - Orkla ASA  ORK.OL :
    * PROFIT GROWTH FOR THE ORKLA GROUP
    * Q3 REVENUE NOK 14.8 BILLION (REFINITIV POLL: NOK 14.88
BILLION)
    * Q3 ADJUSTED EBIT NOK 2,223 MILLION (REFINITIV POLL: NOK
2,279
MILLION)
    * WAR IN UKRAINE HAS A SIGNIFICANT NEGATIVE IMPACT ON THE
AVAILABILITY AND PRICES OF RAW MATERIALS AND OTHER INPUT
FACTORS, AND THE LONGER-TERM CONSEQUENCES OF A PROTRACTED
CONFLICT IN EUROPE ARE UNCLEAR
    * GEOPOLITICAL UNCERTAINTY COULD ALSO CONTRIBUTE TO ENERGY
PRICES
REMAINING AT A VERY HIGH LEVEL OR CONTINUING TO RISE, AND RESULT
IN RAW MATERIAL SCARCITY AND IMBALANCE IN THE GLOBAL FLOW OF
GOODS
    * THESE ELEMENTS ARE EXPECTED TO IMPACT ON ORKLA’S BRANDED
CONSUMER GOODS BUSINESS THROUGHOUT 2022 AND INTO 2023
    * OUTLOOK: THE INCREASES IN INPUT PRICES HAVE RESULTED IN
SUBSTANTIALLY HIGHER COSTS FOR ORKLA’S BRANDED CONSUMER GOODS
BUSINESS, WHICH ARE EXPECTED TO CONTINUE
    * OUTLOOK: A IS ALSO EXPERIENCING INCREASES IN COSTS OTHER
THAN
COSTS FOR INPUT FACTORS. THESE ELEMENTS REINFORCE THE NEED FOR
FURTHER PRICE INCREASES GOING FORWARD
    * OUTLOOK:  WINDFALL TAX OF 23% OF POWER PRICES EXCEEDING 70
ØRE/KWH IS PROPOSED. IF APPROVED, THE WINDFALL TAX WILL IMPACT
NEGATIVELY ON EBIT (ADJUSTED.) FOR HYDRO POWER AS FROM 28
SEPTEMBER 2022

Source text for Eikon:  ID:nWkrWr6Ly 
Further company coverage:  ORK.OL 
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