Goal and strategy
Long-term value creation is Orkla’s first priority.
The primary driver for long-term value creation is organic growth for local brands and services
- Orkla aims to distinguish itself significantly from its competitors through its unique local insight and presence.
- Innovations based on the Group’s unique local customer and consumer insight will be a main growth driver.
- A growing number of new products will be launched across Orkla’s markets and business areas through closer collaboration across borders and individual companies.
- Priority will be given to further developing and strengthening customer relations, with a shared goal of profitable growth.
- Orkla will strengthen its presence in emerging sales channels and focus more purposefully on export.
Improved profitability through more efficient operations in every part of the value chain
- The Group will to a greater degree exploit economies of scale, reduce the complexity of its portfolio and create synergies across different companies.
- The Group will also realise synergies through the integration of acquired companies.
- Production will be concentrated on fewer, but larger production units, thereby freeing up resources for innovation, growth and competence building.
- Steps will be taken to simplify the organisational structure, including IT and administration.
Acquisitions in Branded Consumer Goods
- Strategically appropriate acquisitions will remain a key element of Orkla’s growth strategy and value creation model. At the same time, the Group will reduce its complexity to a greater degree through more active portfolio management.
- Through acquisitions, Orkla wll strengthen its activities in selected geographical areas, channels or niches where we can achieve leading positions based on the Group’s core competencies.
A clear capital allocation strategy
The Board of Directors has proposed a dividend policy entailing an ambition of increasing the dividend from its current level of NOK 2.60 per share, normally within 50-70% of earnings per share.
Our first priority in allocating excess capital is to strengthen Branded Consumer Goods by making acquisitions and investing in existing operations.
Alternatively, an extraordinary dividend or a share buyback will be considered.
The Group’s goal is to remain an investment-grade company. This means ensuring that the net interest-bearing liabilities / EBITDA ratio over time is less than 2.5.