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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 has been positively driven by robust organic growth and profitability. The company's Q4 2025 earnings call highlighted a 4.5% organic growth and a 25% increase in adjusted earnings per share. Furthermore, Orkla's strategic expansion continues with the acquisition of Senna, an Austrian manufacturer of margarines and sauces. A favorable European market backdrop, characterized by stabilizing inflation and rising consumer spending, also supports the company's prospects.

1.c. Company Highlights

2. Orkla's Q4 Results: A Strong Finish to 2025

Orkla's fourth quarter results were robust, with operating revenues increasing by 2% to NOK 18.8 billion. The company's reported EBITDA rose 12%, and adjusted earnings per share (EPS) came in at NOK 1.74 per share, a 24% increase year-over-year, beating analyst estimates of NOK 1.4. The strong EPS performance was driven by the company's underlying EBIT, which increased by 17% across its portfolio companies, with all contributing positively. Adjusted EPS growth was 25% year-over-year.

Publication Date: Feb -15

📋 Highlights
  • Organic Q4 growth:: 4.5% driven by price and volume mix.
  • Underlying EBIT growth:: 17% YoY with all portfolio companies contributing.
  • Adjusted EPS increase:: 24% year-over-year, reaching NOK 1.74 per share.
  • Jotun's performance:: 28% underlying operating profit growth leading the portfolio.
  • Orkla Snacks resilience:: 16% adjusted EBIT growth despite a challenging chocolate market.

Segment Performance

Jotun delivered a standout quarter, with underlying operating profit growth of 28%. Orkla Snacks also performed well, ending a challenging year for the chocolate market with 16% underlying EBIT adjusted growth. According to Nils Selte, "we delivered organic value creation across the portfolio with 3.5% organic growth and positive volume mix development" in 2025.

Cash Flow and Dividend

Cash flow from operations was NOK 7.8 billion in 2025, a reduction of NOK 0.3 billion compared to the previous year. The Board intends to propose a total dividend of NOK 6 per share, including NOK 2 in addition to the extra dividend, reflecting a dividend yield of 7.7%. Analysts estimate revenue growth at 3.1% for the next year.

Valuation

Orkla's current valuation metrics indicate a relatively attractive position. The stock trades at a P/E Ratio of 11.83, P/B Ratio of 2.81, and EV/EBITDA of 12.47. The dividend yield stands at 7.7%, while the Free Cash Flow Yield is 5.15%. With an ROE of 23.38% and ROIC of 7.75%, the company demonstrates a strong ability to generate returns. The Net Debt / EBITDA ratio is 1.53, indicating a manageable debt position.

3. NewsRoom

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Orkla buys Austrian maker of margerines, sauces Senna

Feb -18

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Orkla ASA (ORKLY) Q4 2025 Earnings Call Highlights: Strong Organic Growth and Profitability Boost

Feb -12

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Top European Dividend Stocks To Consider In February 2026

Feb -09

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Top European Dividend Stocks For December 2025

Dec -16

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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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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: 5.3

Growth: 6.8

Quality: 7.5

Yield: 8.1

Momentum: 6.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Südzucker

A-Score: 5.5/10

Value: 9.6

Growth: 5.0

Quality: 3.5

Yield: 4.4

Momentum: 1.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Lerøy Seafood

A-Score: 5.1/10

Value: 5.2

Growth: 4.6

Quality: 4.2

Yield: 6.2

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
AAK

A-Score: 5.0/10

Value: 5.1

Growth: 7.4

Quality: 6.1

Yield: 2.5

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Glanbia

A-Score: 3.9/10

Value: 4.0

Growth: 5.0

Quality: 4.5

Yield: 4.4

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Tate Lyle

A-Score: 3.7/10

Value: 4.1

Growth: 1.1

Quality: 2.3

Yield: 8.8

Momentum: 0.0

Volatility: 6.0

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

130.2$

Current Price

130.2$

Potential

-0.00%

Expected Cash-Flows