Brief: Orkla Says Inflation, Interest Rates Hit Consumer Spending

Orkla ASA

14/07/2023 06:21

July 14 (Reuters) - Orkla ASA  ORK.OL :
    * ALL PORTFOLIO COMPANIES IN ORKLA HAD GOOD ORGANIC GROWTH,
BUT
MOST OF THEM ALSO SAW A CERTAIN DECLINE IN VOLUME
    * CONTRIBUTION TO ORKLA'S PROFIT FROM JOTUN (IN WHICH ORKLA
OWNS A
42.7% INTEREST) TOTALLED NOK 533 MILLION
    * INPUT FACTORS WERE SUBSTANTIALLY HIGHER THAN IN SAME
PERIOD OF
2022
    * HAVE IMPLEMENTED PRICE INCREASES TO COMPENSATE FOR THIS
RIS
    * HIGHER INFLATION AND RISING INTEREST RATES HAVE REDUCED
CONSUMER
BUYING POWER IN MOST OF OUR MARKETS, WHICH HAS IN TURN PUT
PRESSURE ON OUR SALES VOLUMES
    * HYDRO POWER HAD OPERATING PROFIT EBIT (ADJUSTED.) OF NOK
282
MILLION, COMPARED WITH NOK 579 MILLION IN SAME PERIOD OF 2022
    * ON HYDRO POWER: DECLINE IS DUE TO SIGNIFICANTLY LOWER
POWER
PRICES THAN IN Q2 OF 2022
    * ON COST CUTS: EXPECTATIONS REMAIN UNCHANGED, COST
REDUCTION
PROGRAMMES ALREADY INITIATED ARE ON TRACK

Source text for Eikon:  ID:nWkr71b626 
Further company coverage:  ORK.OL 

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