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Investing.com -- Orkla shares climbed 3.5% on Friday after the company reported third-quarter revenues that exceeded analyst expectations and announced a significant share buyback program.
The Norwegian consumer goods company posted revenues of NOK17,946 million in the third quarter, surpassing the consensus estimate of NOK17,788 million by 1%. The performance was driven by 4.4% organic growth across its consolidated portfolio companies, supported by positive volume and mix in most units along with firm pricing.
Orkla Food Ingredients delivered the strongest performance, exceeding expectations by 5%, while Orkla Snacks outperformed revenue forecasts by 4%. However, Orkla Foods and Orkla Health came in slightly below consensus due to softer volumes, temporary operational issues in the Czech Republic, and continued mix pressure in Orkla Health.
Adjusted EBIT for the quarter reached NOK2,039 million, 1% above the consensus estimate of NOK2,025 million.
This beat reflected stronger-than-expected profitability in several portfolio companies, driven by solid cost control, improved operational efficiency, and better-than-forecast gross margins in OFI and OHPC. Snacks was the main underperformer, with EBIT margin 1.9 percentage points below consensus due to cocoa-driven margin pressure.
The company reported adjusted earnings per share of NOK1.85, exceeding the consensus estimate of NOK1.69 by 9%. This strong performance was attributed to higher EBIT, a significantly stronger contribution from Jotun, and lower net financial costs.
Jotun contributed NOK603 million to Orkla’s earnings, 22% above the consensus estimate of NOK493 million. Jotun’s EBITA margin in the period was 21.7%. The significant upside reflected strong underlying volume growth, improved gross margins supported by favorable raw material prices, and better financial items.
Orkla also announced a NOK4 billion share buyback program set to commence on November 17, 2025, reiterating its commitment to shareholder returns.
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