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1. Company Snapshot

1.a. Company Description

Orkla ASA engages in branded consumer goods, and industrial and financial investment businesses.The company offers branded products, including frozen pizza, ketchup, soups, sauces, bread toppings, and ready-to-eat meals through grocery retail trade, as well as the out-of-home, convenience store, and petrol station sectors.It also provides confectionery, biscuit, and snack products; and develops crispbread products, as well as energy snack meals.


In addition, the company offers personal care and cleaning products; dietary supplement, sport nutrition, and weight control products; wound care products and first aid equipment; painting tools; basic garments; and professional cleaning products.Further, it operates Gymgrossisten and Bodystore e-commerce portals for health and sports nutrition products; and restaurants.Additionally, the company supplies margarine and butter blends, bread and cake improvers and mixes, yeast, marzipan, and ice cream ingredients; produces and supplies hydro power to the Nordic power market; and develops and sells real estate properties.


It offers its food products under the Grandiosa, TORO, Stabburet, Felix, Paulúns, Abba, Kalles, Beauvais, Den Gamle Fabrik, Spilva, Vitana, MTR, and Eastern brands; confectionery and snacks under the KiMs, Nidar, Stratos, Göteborgs Kex, Sætre, OLW, Panda, Laima, Selga, Taffel, Adazu, and Kalev brands; health and sports nutrition under Zalo, Jif, Bliw, Grumme, Blenda, Define, Möller's, Collett, Nutrilett, Maxim, Norgesplaster, and Salvequick brands; and food ingredients under Odense, Mors Hjemmebakte, KronJäst, Bakkedal and NATURLI' brands.It has operations in Norway, Sweden, Denmark, Finland, Iceland, the Baltics, rest of Europe, and internationally.The company is headquartered in Oslo, Norway.

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1.b. Last Insights on ORK

Orkla ASA's recent performance was negatively impacted by the prevailing market sentiment, as European markets navigated trade negotiations and economic fluctuations. The company's operations were likely affected by the uncertainty surrounding potential U.S. tariffs, which tempered enthusiasm for European stocks. Furthermore, the easing of trade tensions and optimism over potential U.S. interest rate cuts may have led to a shift in investor focus away from dividend stocks, including Orkla.

1.c. Company Highlights

2. Orkla's Q3 Results: Steady Growth Amidst Varied Performance

Orkla's third-quarter results demonstrated a 4% year-over-year increase in operating revenue to NOK 17.9 billion, with adjusted EBIT growing by 2% to NOK 2 million. The company's adjusted earnings per share (EPS) rose by 9% to NOK 1.85, surpassing analyst estimates of NOK 1.73. The organic growth across its portfolio companies stood at 4.4%, driven by a 1.3% positive contribution from volume mix, and underlying EBIT adjusted growth of 1.1%. As noted by CFO Arve Regland, the company's focus on long-term value creation is evident in its commitment to delivering on its 2024-2026 financial targets.

Publication Date: Nov -16

📋 Highlights
  • Organic Growth & EBIT Performance: Orkla achieved 4.4% organic revenue growth and 1.1% underlying EBIT adjusted growth in Q3, driven by 1.3% volume/mix improvement.
  • Capital Return Strategy: Initiated a NOK 4 billion share buyback program post-Orkla India IPO, signaling excess capital return to shareholders.
  • Segment Variability: Jotun delivered double-digit underlying EBIT growth, while Orkla Food Ingredients and Snacks faced weaker performance (Orkla India: -1.8% EBIT decline).
  • Raw Material Outlook: Expects raw material prices to stabilize in 2025 (excluding cocoa) and remain flat in 2026, mitigating cost pressures.
  • Strategic Priorities: Emphasized long-term value creation, brand elevation, and a new 2030 strategy plan, with flat operational development expected for the quarter.

Segmental Performance

Jotun delivered strong results with double-digit underlying EBIT growth, while Orkla Food Ingredients and Orkla Snacks had a weaker development. Orkla India's organic operating revenue growth was 4.3%, although its underlying EBIT declined by 1.8%. The varied performance across segments reflects the challenges in managing different categories, with the company expecting raw material prices to stabilize in 2025, excluding cocoa.

Strategic Initiatives

The company is working on elevating its hero brands and implementing new ways of running its portfolio of brands, which is a time-consuming process. Progress has been seen in prioritized categories in Food over the last few quarters. The BUBS launch in the U.S. was promising, and the company will continue to support the rollout with SG&A resources and A&P.

Valuation and Outlook

With a P/E Ratio of 10.11 and an ROE of 22.54%, the company's valuation appears reasonable. Analysts estimate next year's revenue growth at 3.4%. The company's commitment to returning excess capital to shareholders is evident in its NOK 4 billion share buyback program. As the company looks towards its next strategy plan through 2030, its focus on long-term value creation remains intact.

Raw Material Prices and Guidance

The company expects flat development in raw material prices, including cocoa, going into 2026. However, the current picture shows a big variation between different categories, which may affect portfolio companies differently. The company does not want to guide on headquarters costs going forward, although they continue to decline sequentially.

3. NewsRoom

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3 European Dividend Stocks Yielding Up To 9.3%

Nov -17

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Orkla (OB:ORK) Is Up 5.9% After Q3 Results and Buyback Program Announcement - Has The Bull Case Changed?

Nov -16

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Orkla (OB:ORK) Valuation in Focus Following Recent Share Price Gains

Nov -16

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Orkla ASA (ORKLF) Q3 2025 Earnings Call Highlights: Strong Organic Growth and Strategic Milestones

Nov -14

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Orkla to close Dragsbaek pasta factory in Denmark

Oct -27

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Orkla’s India unit IPO opens next week

Oct -24

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MTR Foods parent Orkla India sets IPO price band of 695-730 rupees, eyes $1.14 billion valuation

Oct -24

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Top European Dividend Stocks For October 2025

Oct -16

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.70%)

6. Segments

Orkla Foods

Expected Growth: 2.8%

Orkla Foods' 2.8% growth is driven by increasing demand for convenience and healthy food options, strategic acquisitions, and expansion into emerging markets. Additionally, the company's focus on innovation, cost savings initiatives, and effective supply chain management have contributed to its growth momentum.

Orkla Food Ingredients

Expected Growth: 2.5%

Orkla Food Ingredients' 2.5% growth is driven by increasing demand for bakery, confectionery, and dairy products, as well as expansion into emerging markets. Additionally, the company's focus on innovation, sustainability, and cost savings initiatives contribute to its growth. Furthermore, strategic acquisitions and partnerships enhance its product offerings and geographic reach, supporting long-term growth.

Orkla Confectionery & Snacks

Expected Growth: 2.2%

Orkla Confectionery & Snacks' 2.2% growth is driven by increasing demand for convenience foods, premiumization of snacking, and expansion in emerging markets. Strong brand portfolio, including KiMs and Saba, contributes to market share gains. Additionally, strategic acquisitions and investments in e-commerce capabilities support growth.

Orkla Health

Expected Growth: 3.5%

Orkla Health's 3.5% growth is driven by increasing demand for healthy and sustainable living, expansion into new markets, and strategic acquisitions. The segment benefits from Orkla ASA's strong brand portfolio, including Vitafylling and Laila, and a growing e-commerce presence. Additionally, investments in product innovation and marketing campaigns contribute to the segment's growth momentum.

European Pizza

Expected Growth: 2.0%

European Pizza from Orkla ASA's 2.0% growth is driven by increasing demand for convenient, premium, and healthy pizza options, particularly among millennials and Gen Z consumers. Expansion in Eastern Europe, rising disposable incomes, and strategic marketing efforts also contribute to growth.

Orkla India

Expected Growth: 4.0%

Orkla India's 4.0% growth is driven by increasing demand for convenience foods, expanding distribution channels, and strategic acquisitions. The Indian market's growing middle class and urbanization also contribute to the growth. Furthermore, Orkla's strong brand portfolio, including MTR and SPAR, and its focus on innovation and product development are key drivers of its success in the region.

Orkla Home & Personal Care

Expected Growth: 2.8%

Orkla Home & Personal Care's 2.8% growth is driven by increasing demand for sustainable and eco-friendly products, expansion in emerging markets, and strategic acquisitions. Additionally, the segment benefits from a strong brand portfolio, including Lilleborg and Lano, and a focus on innovation, such as the introduction of new product lines and packaging solutions.

Orkla House Care

Expected Growth: 2.3%

Orkla House Care's 2.3% growth is driven by increasing demand for eco-friendly and sustainable cleaning products, expansion into emerging markets, and strategic acquisitions. Additionally, the segment benefits from Orkla ASA's strong brand portfolio, including Lilleborg and Jif, and its ability to innovate and adapt to changing consumer preferences.

Hydro Power

Expected Growth: 1.8%

Orkla ASA's Hydro Power segment growth of 1.8% is driven by increasing demand for renewable energy, government incentives for sustainable power sources, and strategic investments in upgrading existing infrastructure. Additionally, the company's focus on operational efficiency and cost reduction initiatives have contributed to the growth.

Health and Sports Nutrition

Expected Growth: 3.8%

Orkla ASA's Health and Sports Nutrition segment growth of 3.8% is driven by increasing consumer demand for healthy and sustainable living, rising popularity of fitness and wellness activities, and strategic acquisitions expanding product offerings and geographic reach.

Pierre Robert

Expected Growth: 2.9%

Pierre Robert's 2.9% growth with Orkla ASA is driven by increasing demand for convenience foods, strategic acquisitions, and expansion into emerging markets. Additionally, the company's focus on innovation, cost savings initiatives, and effective supply chain management have contributed to its growth momentum.

Lilleborg

Expected Growth: 2.6%

Lilleborg's 2.6% growth is driven by increasing demand for healthy and sustainable food options, expansion into new markets, and successful product innovations. Additionally, Orkla ASA's strategic investments in digitalization and e-commerce capabilities have enhanced Lilleborg's online presence, contributing to its growth momentum.

Orkla Real Estate

Expected Growth: 2.1%

Orkla Real Estate's 2.1% growth is driven by increasing demand for commercial properties in Norway, fueled by a strong economy and low interest rates. Additionally, the segment's focus on sustainable and energy-efficient developments, as well as its strategic acquisitions, have contributed to its growth.

Head Office

Expected Growth: 1.5%

Orkla ASA's Head Office growth of 1.5% is driven by strategic cost savings initiatives, operational efficiencies, and a focus on innovation. Additionally, the company's diversification into new markets and product categories, as well as its commitment to sustainability, contribute to its growth momentum.

7. Detailed Products

Food Ingredients

Orkla ASA provides a range of food ingredients, including bakery, dairy, and meat products, to the food industry.

Confectionery and Snacks

Orkla ASA offers a range of confectionery and snack products, including chocolates, biscuits, and nuts.

Dairy Products

Orkla ASA produces a range of dairy products, including cheese, yogurt, and milk.

Bakery and Milling

Orkla ASA provides a range of bakery and milling products, including flour, bread, and pastries.

Specialty Foods

Orkla ASA offers a range of specialty foods, including frozen foods, seafood, and convenience foods.

Household and Personal Care

Orkla ASA provides a range of household and personal care products, including cleaning products, laundry detergents, and personal care items.

Aluminium Solutions

Orkla ASA offers a range of aluminium solutions, including foil, packaging, and other aluminium products.

8. Orkla ASA's Porter Forces

Forces Ranking

Threat Of Substitutes

Orkla ASA operates in a industry where substitutes are available, but they are not a significant threat to the company's products. The company's focus on innovation and quality helps to differentiate its products from substitutes.

Bargaining Power Of Customers

Orkla ASA's customers have low bargaining power due to the company's strong brand presence and wide distribution network. The company's products are also widely available, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Orkla ASA's suppliers have moderate bargaining power due to the company's dependence on a few large suppliers. However, the company's strong relationships with its suppliers and its ability to negotiate prices help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low in Orkla ASA's industry due to the high barriers to entry, including the need for significant capital investment and the complexity of the production process.

Intensity Of Rivalry

The intensity of rivalry in Orkla ASA's industry is high due to the presence of several large competitors. The company's focus on innovation, quality, and customer service helps to differentiate it from its competitors and maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.54%
Debt Cost 3.95%
Equity Weight 70.46%
Equity Cost 3.85%
WACC 3.88%
Leverage 41.92%

11. Quality Control: Orkla ASA passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Orkla

A-Score: 7.2/10

Value: 5.4

Growth: 6.8

Quality: 7.3

Yield: 8.1

Momentum: 6.0

Volatility: 9.7

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Lerøy Seafood

A-Score: 5.0/10

Value: 4.3

Growth: 4.7

Quality: 3.2

Yield: 6.9

Momentum: 4.0

Volatility: 7.0

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Südzucker

A-Score: 4.9/10

Value: 7.8

Growth: 5.0

Quality: 2.8

Yield: 3.8

Momentum: 1.0

Volatility: 9.0

1-Year Total Return ->

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AAK

A-Score: 4.8/10

Value: 5.1

Growth: 7.4

Quality: 5.8

Yield: 3.1

Momentum: 0.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Tate Lyle

A-Score: 3.9/10

Value: 3.4

Growth: 1.1

Quality: 4.0

Yield: 8.8

Momentum: 0.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Glanbia

A-Score: 3.5/10

Value: 4.2

Growth: 5.0

Quality: 4.5

Yield: 4.4

Momentum: 2.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

107.6$

Current Price

107.6$

Potential

-0.00%

Expected Cash-Flows