Orkla ASA : Improvement for Orkla's Branded Consumer Goods

          Orkla ASA : Improvement for Orkla's Branded Consumer Goods

Orkla's operating profit (EBITA) amounted to NOK 596 million in the first
quarter of 2013, compared with NOK 676 million in the corresponding period of
2012. Operating profit for Orkla's Branded Consumer Goods business rose 8% to
NOK 579 million. Operating profit from the acquired company Jordan accounted
for around half of this improvement.

For continuing operations, Orkla's operating revenues totalled NOK 7,219
million, compared with NOK 7,069 million in the corresponding period of last
year. The Branded Consumer Goods business reported underlying operating
revenues on a par with the first quarter of 2012.

"Although I am satisfied with the profit performance of several of our
companies, we need to strengthen our competitiveness. We must create larger,
more effective entities. We are now merging our chocolate, snacks and biscuits
companies, and creating one leading company per country in the Nordic region.
Now that the competition authorities have approved our acquisition of Rieber &
Søn, we will similarly establish a single food company in each of the Nordic
countries," says Orkla President and CEO Åge Korsvold.

The Branded Consumer Goods business
Orkla Foods achieved broad-based sales and volume growth in the grocery
market, but delivered a slightly weaker performance in the out-of-home sector.
Operating profit amounted to NOK 226 million, an improvement of 12%. Both
Procordia and Abba Seafood in Sweden reported good sales and profit growth. To
further strengthen their position, these two companies have merged to create a
leading Swedish food company. In Norway, Stabburet continued to improve its
performance in the grocery market. Beauvais foods posted profit growth in a
demanding Danish market. Felix Abba in Finland increased its sales in the
grocery market, while the Baltic businesses achieved both revenue and profit
growth. Overall market shares were maintained.

Orkla Confectionery & Snacks experienced a weaker trend. First-quarter
operating profit amounted to NOK 144 million, compared with NOK 169 million in
the same period of 2012. Competition on the Nordic snacks market is strong,
and the biscuits business saw a decline in Norway and Sweden. Higher sales of
"pick and mix" sweets contributed to a certain improvement in profit for
Nidar. All in all, market shares weakened slightly.

Orkla Home & Personal achieved operating profit of NOK 214 million, an
improvement of 8%. Profit growth was ascribable to Lilleborg in Norway, Pierre
Robert Group in Norway and Sweden, and Axellus (primarily in the Nordic
region). Jordan, which is Nordic market leader in the oral hygiene sector, is
well integrated with Lilleborg. Overall market shares were strengthened.

Orkla International posted an operating loss of NOK 42 million, compared with
an operating loss of NOK 37 million in the first quarter of 2012. Orkla Brands
Russia saw a decline in sales. The company is undergoing a major
time-consuming restructuring process. It is reducing its factories from four
to three, and the number of its product lines from 1100 to 600. MTR Foods, on
the other hand, increased its operating revenues by 12%. New product launches
boosted volume in the company's core categories, powder mixes and spice

Orkla Food Ingredients (OFI) posted operating profit of NOK 37 million, up
from NOK30million in the corresponding period of last year. This improvement
is attributable to the sale of Kolding Salatfabrik in Denmark. Cold weather
had a negative impact on the sale of bakery and ice cream ingredients in
Scandinavia. OFI maintained or strengthened its most important market
positions in the quarter.

Other businesses
Sapa Heat Transfer reported operating profit of NOK 85 million, an improvement
of 20%. This increase is due to a comprehensive improvement programme
consisting of cost reductions, operational initiatives and price adjustments.
Deliveries to the European automotive industry declined, while the North
American market remained at the same level as in 2012. Growth in the Chinese
automotive market accelerated. Orkla is engaged in exclusive talks with one
strategic buyer for Sapa Heat Transfer.

Operating profit for Orkla Financial Investments was NOK 8 million, compared
with NOK108 million in the first quarter of 2012. Last year's first quarter
results were boosted by particularly high gains on the sale of real estate.

Hydro Power posted an operating loss of NOK 3 million, compared with operating
profit of NOK33 million in the same quarter of last year. The fall in profit
is mainly due to lower volume production as a result of extremely dry winter
months and to a scheduled maintenance halt in Sauda (Norway).

Operating profit for Jotun, which is an associated company, continued to show
good growth, while sales were on a par with the first quarter of 2012. New
ship building activity in Asia is at a low level, but this effect was
counteracted by the continued good performance of the other segments.

Orkla continued to sell off shares and financial assets in the first quarter,
freeing up a net total of NOK 677 million in capital. The market value of the
Group's shares and financial assets, including the investments in REC and
Borregaard, totalled NOK 3,169 million at the end of the first quarter.

Discontinued operations
Orkla and Hydro wish to jointly establish a leading global supplier of
aluminium solutions. A decision by the European competition authorities
regarding approval of this joint venture will be reached by 14 May 2013.

The part of Sapa that is to be included in the joint venture with Hydro posted
first-quarter operating profit of NOK 46 million, compared with NOK 122
million in the corresponding period of 2012.

Profit has been strongly impacted by weak European markets, while profit
performance in North America was positive. The Asian business is undergoing a
phase of establishment and expansion.

Orkla's pre-tax profit amounted to NOK 900 million, compared with a
corresponding NOK1,154 million in the first quarter of 2012.

Orkla ASA
Oslo, 2 May 2013

EVP Corporate Communications and Corporate Affairs
Håkon Mageli
Tel: +47928 45828

SVP Investor Relations
Rune Helland
Tel: +47 22 54 44 11 / +47977 13250

An Excel file with key figures is available at www.orkla.com

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
1st Quarter 2013
Presentation of 1st Quarter 2013


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Source: Orkla ASA via Thomson Reuters ONE
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