Norwegian industrial group Orkla ASA reported flat organic revenue growth of -0.3% in the second quarter of 2026, as price increases were offset by volume declines across its portfolio. The company’s adjusted earnings before interest and taxes rose 2.5% year-over-year, while its rolling 12-month EBIT margin remained within its target range at 10.5%. Shares of Orkla fell 4.87% to $102.75 in premarket trading following the results, before declining further to $97.50, near its 52-week low of $96.20.
Underlying adjusted EBIT for the group grew 2.5% to NOK 1.6 billion, supported by contributions from Jotun, its 42.7%-owned paint and coatings anchor company. Reported operating revenues declined 5% to NOK 16.7 billion, primarily due to adverse currency effects. Adjusted earnings per share increased 3% to NOK 1.60, while profit attributable to shareholders totaled NOK 1.7 billion, down from NOK 6.2 billion in the prior-year period, which included discontinued operations.
Jotun delivered revenue growth of 3.9% to NOK 9.0 billion, with underlying EBIT up 21% to NOK 2.0 billion, reflecting a 22.8% margin. Orkla’s stake in Jotun contributed NOK 494 million to group EBIT. In contrast, Orkla’s wholly-owned food businesses reported mixed performance. Orkla Foods saw organic revenue decline 1.3%, with volume weakness in Norway, Denmark, and Finland offsetting modest pricing gains. Orkla Snacks reported a 1.1% organic revenue decline, while Orkla Food Ingredients recorded a 1.5% drop, pressured by volume declines in bakery and plant-based segments.
Orkla Health’s underlying EBIT fell 5.8%, citing higher costs and elevated advertising spend, while Orkla India’s EBIT declined 4.1%, excluding a prior-year government grant. The group’s net interest-bearing debt rose to NOK 20.7 billion, up from NOK 14.2 billion at year-end 2025, with a leverage ratio of 2.0x EBITDA. Cash flow from operations totaled NOK 2.1 billion year-to-date, down from NOK 2.4 billion a year earlier, impacted by higher working capital requirements.
Chief Financial Officer Eivind Egeland noted dissatisfaction with the organic growth performance, emphasizing the need for improvement in volume trends. He indicated that cost-cutting measures targeting selling, general, and administrative expenses would take time to materialize, with limited near-term impact. The company also highlighted geopolitical risks in the Middle East as a potential headwind for Jotun’s operations, though the magnitude remained difficult to quantify.
Orkla maintained its dividend yield at 5.81%, continuing a 35-year streak of payouts. The group deployed NOK 8.2 billion for dividends and share buybacks, including the completion of a NOK 4 billion buyback program in July 2024. Recent acquisitions, such as the purchase of The European Candy Group and a 40% stake in Go-Tan Group, aim to bolster its snacks and sauces portfolios, though these are not expected to materially influence near-term results.
