Third quarter results 2018

Transcription

1 1 Third quarter results October 2018 Peter A. Ruzicka, President & CEO

2 Disclaimer This presentation has been prepared by Orkla ASA (the Company ) solely for information purposes. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. Certain statements included in this presentation contain various forward-looking statements that reflect management s current views with respect to future events and financial and operational performance. The words believe, expect, anticipate, intend, may, plan, estimate, should, could, aim, target, might, or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include but are not limited to the Company s ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brands in its portfolio, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, neither the Company nor its subsidiary undertakings or any of such person s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. 2

3 Highlights Q3-18: Overall progress, but challenges in some Care markets Improved sales and profit in Confectionery & Snacks and Food Ingredients Good growth for Foods outside Norway Growth in Care hampered by weak performance in Poland and UK Continued sales growth and stabilising raw material prices for Jotun EPS from continuing operations NOK 1.01 (+3%) 3

4 Branded Consumer Goods Q3-18: Overall progress hampered by Care BCG organic growth Organic growth Q3-18 by business area 2.8% 1.8% 1.6% 0.7% Orkla Foods 1.1% 0.7% Orkla Confectionery 0.8% 0.5% 0.8% -0.2% 3.5% & Snacks % Q % Q2-18 Q % Orkla Care -2.6% Orkla Food Ingredients 1.4% Organic growth including loss of Confectionery & Snacks distribution business 4 All Alternative Performance Measures (APM) are presented in the appendix

5 Branded Consumer Goods R12M Q3-18: Improved margin driven by fixed cost agenda BCG U.EBIT (adj.) margin R12M Q % -0.2pp Underlying margin growth: +0.4pp 0.1pp 0.3pp 12.0% EBIT (adj.) margin R12M Q3-17 M&A and FX effects Variable costs Other costs 1 EBIT (adj.) margin R12M Q Note: Figures may not add up due to rounding 1 Other costs include fixed production costs, SG&A and advertising

6 1 6 Closing remarks Peter A. Ruzicka, President & CEO

7 Overall progress, but challenges in some Care markets Key takeaways Capital Markets Day 31 October 2018 Progress in Confectionery & Snacks and Food Ingredients Good growth for Foods outside Norway Volume decline in Norwegian grocery retail Turnaround initiated in Care in Poland and UK Continued sales growth and stabilising raw material prices in Jotun EPS from continuing operations NOK 1.01 (+3%) 17

8 We continue to meet consumer trends through local brands Convenience Taste & indulgence Sustainability Health & well-being Chilled ready-made sauces Made from real broth and cream Free from preservatives Chocolate coated Panda liquorice balls dusted with raspberry and liquorice powder Cross-country launch 100 % recycled plastic Bio-based bristles Packaging made of paper pulp 100% plant based mince Organic Gluten free 18

9 1 9 Q&A Peter A. Ruzicka, President & CEO Jens Bjørn Staff, CFO