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Investing.com -- Orkla ASA (OL:ORK) on Monday reported a profit of NOK 6.37 billion in the second quarter of 2025, up from NOK 2.15 billion a year earlier, mainly due to NOK 4.8 billion in gains from the sale of its hydropower assets.
Adjusted EBIT rose 6% to NOK 1.87 billion, while adjusted EBIT for consolidated portfolio companies increased 3% to NOK 1.92 billion.
Operating revenue rose 5% year over year to NOK 17.65 billion. Adjusted diluted earnings per share in the quarter were NOK 1.56, up from NOK 1.55. Profit attributable to owners of the parent company totaled NOK 6.22 billion.
For the first half of 2025, the Norwegian company reported profit before tax of NOK 4.24 billion, a 4.2% increase from the same period last year.
Operating revenue for the half-year rose 3.5% to NOK 34.83 billion, supported by pricing across portfolio companies and minor volume growth.
Adjusted EBIT for the half rose 7.6% to NOK 3.63 billion. Adjusted earnings per share increased 9.5% to NOK 3.24, while total diluted earnings per share rose to NOK 8.02 from NOK 3.52.
Orkla completed two structural transactions during the period: the divestment of its hydropower portfolio, which generated a significant gain, and the sale of Pierre Robert Group, which recorded an accounting loss of NOK 47 million.
Segment performance in Q2 was mixed. Orkla Food Ingredients posted 20% EBIT growth, and Orkla Home & Personal Care and Orkla Snacks reported gains of 13% and 11%, respectively. Orkla India grew 5.7%, supported by pricing and cost discipline, despite a reduction in government incentives.
Orkla Foods reported a 1.8% decline in underlying EBIT, while Orkla Health fell 21.2%, citing higher advertising and organizational expenses. Orkla House Care declined 28% due to lower volume and seasonal phasing.
Health and Sports Nutrition Group improved EBIT to NOK 8 million from NOK 3 million. The European Pizza Company recorded 11.1% EBIT growth, driven by higher consumer sales and cost controls.
Jotun, in which Orkla holds a 42.7% stake, contributed NOK 422 million in profit in Q2, down from NOK 529 million.
Quarterly revenue rose 3.5% to NOK 8.64 billion. First-half sales increased 2.8%, or 4.8% when adjusted for currency effects.
Cash flow from operations was NOK 2.4 billion in Q2 and NOK 2.45 billion for the first half, down from NOK 2.85 billion a year earlier due to higher working capital and replacement investments. Net cash flow was negative NOK 3.7 billion.
Dividends totaling NOK 10 per share were paid, including an extra NOK 6 per share. A share buyback of NOK 369 million was completed by March. Net interest-bearing debt rose to NOK 19.8 billion by June, and the equity ratio fell to 54.2% from 57.1%.