Orkla rises to top of STOXX after 'massive' EPS beat

Orkla ASA

15/07/2024 09:05

** Shares in Orkla  ORK.OL  rise as much as 6.4% to top of
STOXX  .STOXX  after the Norwegian food processing company
posted Q2 numbers that topped expectations
    ** Adjusted EBIT margin came in at 12.3%, a 94 basis point
beat according to Bernstein, who says that this together with
strong results in associated company Jotun led to a "massive"
14.6% EPS beat
    ** "Clearly the shape of the business is changing under the
new CEO and his new plan, with positive impact on
profitability", the broker adds
    ** The company has so far divested Lilleborg as part of its
strategy to simplify its structure, and completed an IPO
readiness study for Orkla India, CEO Nils K. Selte says
    ** The broker, however, notes a miss on organic growth and
most business segments losing market share as some of the
longer-term concerns


 (Reporting by Tilla Sjaavaag)
 ((tilla.sjaavaag@thomsonreuters.com))