This article first appeared on GuruFocus .
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Revenue:Reported revenues declined by 5%, with underlying revenues flat after adjusting for currency translation effects.
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EBIT:Underlying adjusted EBIT grew 2.5% for the consolidated portfolio, inclusive of Orkla ASA.
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EBIT Margin:EBIT margin was 10.5%, with mixed development across portfolio companies.
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Adjusted Earnings Per Share:Increased by 3% to NOK1.60.
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Cash Flow from Operations:NOK2.1 billion in the first half of the year.
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Cash Flow Before Capital Allocation:NOK1.6 billion, a decline of approximately NOK200 million year-over-year.
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Net Interest-Bearing Debt:NOK20.7 billion at the end of the quarter, corresponding to a net debt to EBITDA ratio of 2.2 times.
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Jotun Revenue:Underlying revenue grew by 11%, driven primarily by higher volumes.
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Jotun Operating Profit:Reported operating profit increased by 13%, while underlying profit grew by 21%.
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Orkla Foods Revenue:Organic revenues declined by 1.3%, with volume mix of minus 2.3%.
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Orkla Foods EBIT:Underlying EBIT increased by 4%.
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Orkla Snacks Revenue:Organic revenue declined by 1.1%, with volume growth of 0.5%.
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Orkla Snacks EBIT:Underlying EBIT increased by 10%.
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Orkla Home & Personal Care Revenue:Organic revenues declined by 2.5%.
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Orkla Home & Personal Care EBIT:Underlying EBIT growth was 8.2%.
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Orkla Food Ingredients Revenue:Organic revenue declined by 1.5%, with volume mix down 2.1%.
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Orkla Health Revenue:Organic growth was 2.7%, driven primarily by pricing.
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Orkla Health EBIT:Underlying EBIT declined by 5.8%.
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Orkla India Revenue:Organic growth was 9.7%, or 11% when excluding the effect of a government grant of NOK6 million recognized in the prior year quarter.
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Orkla India EBIT:Underlying EBIT declined by 4.1%; excluding the prior year grant, underlying EBIT growth was slightly positive.
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European Pizza Company Consumer Sales:Increased by 8.4%, supported by same-store sales growth.
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European Pizza Company EBIT:Underlying EBIT growth was 4.7%.
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Orkla Health Care Revenue:Organic revenues declined by 2.7%.
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Orkla Health Care EBIT:Underlying EBIT increased by 12%.
Release Date: August 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Jotun delivered another strong quarter with 11% underlying revenue growth and 21% underlying profit growth, driven by higher volumes across all segments and regions.
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Adjusted earnings per share increased by 3% to NOK1.60, supported by a 70% increase in profit from Jotun and lower tax and financing costs.
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Orkla completed a NOK4 billion share buyback program in July, demonstrating continued commitment to capital allocation priorities.
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Strategic acquisitions, such as Orkla Snacks' purchase of the European Candy Group and Orkla Foods' acquisition of a 40% stake in Group, strengthen existing categories and support long-term growth.
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Orkla Snacks' Bubs line is now available in approximately 60,000 stores in the US through its partnership with Mount Franklin Foods, expanding its market reach.
Negative Points
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Consolidated portfolio companies had flat organic top line growth and only 2.5% EBIT growth, which management is not satisfied with.
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Volume/mix declined 1.3% across the consolidated portfolio, with price increases offset by lower volumes in several portfolio companies.
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Orkla Food Ingredients saw a broad-based decline in underlying EBIT due to lower volumes and a cost base too high relative to activity levels, with mitigating actions not expected to have significant impact until next year.
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Orkla Health's underlying EBIT declined 5.8%, impacted by higher operational costs, lower profitability in Omega-3, and increased advertising costs, with factory closures weighing on results through 2027.
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Return on capital employed declined slightly, reflecting slower EBIT growth, and management noted this is the most challenging of the three financial targets.
Q & A Highlights
Q: Can you quantify the headwinds from the Middle East conflict going into the second half, and how much can be offset through pricing? A: Arve Regland, CFO, stated that the impact is twofold. For Jotun, the most affected company, short-term impact was lower than anticipated, but significant price increases will weigh on margins going forward, though it is hard to quantify as the picture changes daily. For other companies, elevated input costs for energy, transportation, and packaging persist, but the near-term picture is more positive than in Q1. Uncertainty remains high for 2027, depending on how the conflict develops.
Q: When should we expect the mitigating actions in Orkla Food Ingredients (OFI) to start improving EBIT? A: Arve Regland, CFO, explained that the mitigating actions are mostly SG&A-related and are about to be launched. They are not expected to have a significant impact in the very short term, but rather from next year onwards. The company is not ready to quantify the magnitude, but it is a high priority with the ambition to improve profitability in the mid and longer term.
Q: Can you quantify the Easter phasing headwind in Q2 to understand the underlying growth for the consolidated portfolio, Orkla Foods, Snacks, and OFI? A: Arve Regland, CFO, reiterated that the Easter effect was not the major part of the positive effects in Q1, and the opposite is true in Q2. He advised that to assess underlying performance, it is better to look at the first-half numbers, which eliminate the Easter effects and provide a clearer picture of the underlying speed in each portfolio company.
Q: What is the outlook for organic sales growth in the second half of 2026? Should we expect an acceleration? A: Arve Regland, CFO, stated that the company does not provide a specific outlook for top-line development. However, he reiterated that management is not satisfied with the overall growth on top line and volumes for the consolidated companies in the quarter and first half. The ambition is to increase performance going forward, but they cannot be more precise than that.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
