Norwegian industrial conglomerate Orkla ASA reported a 3% year-over-year increase in adjusted earnings per share to NOK 1.60 for the second quarter of 2026, though organic revenue growth remained flat at 0% and shares fell 4.87% to NOK 97.00 in premarket trading.
Underlying adjusted EBIT rose 2.5% for the consolidated portfolio, with the EBIT margin holding steady at 10.5%, within the company’s target range of 10.5% to 11%. Reported revenue and EBIT-adjusted both declined 5%, primarily due to adverse currency translation effects. First-half cash flow from operations totaled NOK 2.1 billion, while net interest-bearing debt stood at NOK 20.7 billion, with a net debt-to-EBITDA ratio of 2.0x.
The company’s primary operating asset, Jotun, delivered 11% underlying revenue growth and 21% underlying profit growth, with Orkla’s share of profit from Jotun rising 17% to NOK 494 million. However, most other segments reported declines in organic revenue. Orkla Foods saw organic revenues fall 1.3% on a volume mix decline of 2.3%, while Orkla Snacks reported a 1.1% organic revenue decline despite a 10% increase in underlying EBIT. Orkla Health posted organic growth of 2.7% but saw underlying EBIT decline 5.8% due to operational costs and category pressures.
Orkla India delivered organic growth of 9.7%, though underlying EBIT fell 4.1% excluding a prior-year government grant. Orkla Food Ingredients reported a 1.5% organic revenue decline and volume mix down 2.1%, with weak bakery demand in Central and Eastern Europe. Orkla Home & Personal Care saw organic revenues decline 2.5% but achieved an 8.2% rise in underlying EBIT.
CFO Eivind Egeland noted dissatisfaction with the results, citing ongoing challenges in organic growth and volume development. The company plans mitigating actions in Orkla Food Ingredients, though impacts are expected to materialize gradually from 2027 onward. Orkla also completed the divestment of Nói Síríus during the quarter and announced acquisitions, including a 40% stake in Go-Tan Group and the European Candy Group to support the BUBS brand.
Orkla maintained its dividend yield at 5.81%, marking 35 consecutive years of payouts, and scheduled a Capital Markets Day for December 1, 2026.
