Norwegian industrial group Orkla ASA reported a 2.5% increase in adjusted earnings before interest and taxes (EBIT) for the second quarter of 2026, driven by contributions from its associate Jotun, even as consolidated organic revenue contracted 0.3%.
The company’s adjusted EBIT rose to NOK 1.77 billion from NOK 1.87 billion in the prior-year period, while adjusted earnings per share (EPS) increased 3% to NOK 1.60. Operating revenues declined to NOK 16.7 billion from NOK 17.7 billion a year earlier, reflecting weaker volume and mix across key segments.
Organic revenue growth turned negative for the first time in five quarters, falling 0.3% compared with a 4.9% expansion in Q1 2026. Volume and mix contributed a 1.3% decline, partially offset by a 1.1% increase in pricing. The company’s rolling 12-month EBIT margin stood at 10.5%, within its target range of 10.5% to 11%.
CFO Eivind Egeland noted that Orkla was "not satisfied with these results" and emphasized the need for improvement in organic growth and volume development. He indicated that cost-saving measures would focus on selling, general and administrative expenses, with limited near-term impact expected.
Performance across segments was mixed. Jotun, Orkla’s 42.7%-owned associate and largest profit contributor, reported a 21% rise in underlying EBIT to NOK 874 million. Orkla Foods, a wholly owned unit, posted adjusted EBIT of NOK 606 million, up 4% on an underlying basis but with organic revenue down 1.3% due to volume weakness in Norway, Denmark and Finland.
Orkla Snacks recorded a 10% increase in underlying EBIT to NOK 277 million, supported by the July acquisition of The European Candy Group to bolster its BUBS brand. In contrast, Orkla Food Ingredients saw a 6.3% decline in underlying EBIT to NOK 392 million, with organic revenue down 1.5% amid softer demand in bakery and plant-based segments. Orkla Health reported a 5.8% drop in underlying EBIT to NOK 187 million, despite 2.7% organic growth.
Orkla’s net interest-bearing debt rose to NOK 20.7 billion from NOK 14.2 billion at year-end 2025, pushing its leverage ratio to 2.0 times EBITDA. The increase was driven by NOK 8.2 billion in dividends and treasury share transactions, partially offset by NOK 1.6 billion in operating cash flow. The company invested NOK 1.1 billion in expansion and acquisitions and received NOK 500 million from divestments. Return on capital employed (ROCE) improved to 12.3% on a rolling 12-month basis, below its 13% target for 2026.
Shares in Orkla fell 5.84% to NOK 97.50 following the presentation, approaching the 52-week low of NOK 96.20.
