Orkla: High Momentum, Modest Risk, And More Upside

  • Orkla's strategic shift to focus on core business and divest non-core assets has led to a 66% stock appreciation over the past year. The sale of hydropower assets and Pierre Robert Group resulted in an extraordinary dividend, with plans for stable and growing future dividends. Operational efficiency has led to better profitability and strong cash flows despite modest top-line growth.Orkla is guiding 8–10% EBIT growth and 1.5–2.0 pp EBIT margin improvement over the next two years.