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1.10.-31.12 |
1.1.-31.12 |
| Amounts in NOK million |
2009 |
2008 |
2009 |
2008 |
| Operating revenues |
6,324 |
6,741 |
23,046 |
23,398 |
| EBITA* |
874 |
804 |
2,793 |
2,590 |
| EBITA-margin* |
13.8% |
11.9% |
12.1% |
11.1% |
| *Before amortisation, restructuring and significant impairments |
- 9% profit growth in the quarter
- Enhanced profit quality
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www.orklabrands.com
Facts about Orkla Brands
The former business areas Orkla Foods and Orkla Brands were amalgamated in 2008.
The new business area, Orkla Brands, is divided into the following four units: Orkla Foods Nordic, Orkla Brands Nordic, Orkla Brands International and Orkla Food Ingredients. | |
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Orkla Brands achieved fourth-quarter operating revenues of NOK 6,324 million (NOK 6,741 million)2 , an underlying3 performance on a par with 2008. Overall, volume and mix performance was slightly better than in earlier quarters, but still weak. The catering and export businesses reported the greatest declines. The overall effect of price increases was significantly lower in the fourth quarter than in earlier quarters in 2009. Cost development for raw -materials varied in the different markets, but Orkla Brands as a whole -experienced a slight reduction in raw material costs.
Fourth-quarter EBITA1 was NOK 874 million (NOK 804 million)2. Taking into account restructuring and the negative currency effect of consolidating to NOK , the underlying3 profit growth was around 11%. Profit growth was boosted by one-time effects related to the netting of an agreement with a key supplier. When this is taken into account, the growth rate is reduced to around 7%. The main drivers of profit growth were price increases and cost improvements throughout the value chain.
Total purchasing costs were at the same high level as in 2008 (somewhat lower for Orkla Food Ingredients and somewhat higher for the other business units). Currency effects are still negative compared with 2008, but lower than in earlier quarters of 2009.
This year's launches are generally performing well, the largest being the large Smash chocolate bar (Nidar), a new thin-crusted Grandiosa pizza (Stabburet), and a new wool collection for children (Pierre Robert). Overall market-share development shows a slight improvement on earlier quarters in 2009.
1 Operating result before amortisation, gains on sales of power plants, write-downs of inventory in Sapa Profiles in 2008, restructuring and significant write-downs.
2 Figures in parentheses are for the corresponding period in the previous year.
3 Excluding acquisitions, divestments and currency translation effects.