Orkla reported a flat organic top-line development for the second quarter of FY26, with underlying adjusted earnings before interest and tax (EBIT) growing 2.5%. The conglomerate’s adjusted earnings per share (EPS) increased by 3% to NOK 1.60, supported primarily by strong results from its paints subsidiary, Jotun.

Financial Performance

Reported revenues declined by 5% to reflect currency translation effects, while underlying revenues remained flat. Reported EBITDA also fell by 5%. The volume mix declined by 1.3% due to lower volumes across several portfolio companies, offsetting price increases. The consolidated EBIT margin held steady at 10.5%.

Other income stood at NOK 97 million, largely driven by the completion of the divestment of Nói Síríus in Iceland. Cash flow from operations in the first half of the year was NOK 2.1 billion, while cash flow before capital allocation declined by approximately NOK 200 million year over year to NOK 1.6 billion.

Segment Highlights

Jotun delivered robust underlying revenue growth of 11% and profit growth of 21%, despite challenges from the Middle East conflict. Protective Coatings saw the strongest performance. Orkla Foods and Orkla Snacks faced organic revenue declines of 1.3% and 1.1% respectively, though both segments posted EBIT increases of 4% and 10%.

Orkla Home & Personal Care saw organic revenues decline by 2.5% due to promotional phasing, but underlying EBIT grew 8.2% through cost-out initiatives. Orkla Food Ingredients recorded a 1.5% organic revenue decline and a broad-based drop in underlying EBIT driven by lower volumes.

Capital Allocation

The company completed a NOK 4 billion share buyback program announced in November. Year-to-date, Orkla paid NOK 6 billion in dividends and repurchased shares worth NOK 2.3 billion. Net interest-bearing debt stood at NOK 20.7 billion at the end of the quarter, corresponding to a net debt-to-EBITDA ratio of two times.

What the Numbers Show

Jotun’s profit contribution significantly offset declines elsewhere in the portfolio. Orkla’s share of profit from Jotun rose 17% to NOK 494 million, which more than compensated for the decline in adjusted EBIT across other food and consumer segments. This divergence highlights the increasing reliance on the paints division for earnings stability amid flat organic growth in core FMCG businesses.

Outlook and Risks

Management expects increased costs for energy, transportation, and packaging due to the Middle East conflict, with impacts likely extending into the near future. While near-term disruption appears lower than anticipated three months ago, uncertainty regarding supply chains and input costs remains high. The company continues to execute on strategic priorities including organic growth and cost management.

Orkla India Limited shareholders approved all six resolutions proposed at the company’s 30th Annual General Meeting (AGM) held on August 19, 2026. The event marked Orkla India’s first AGM as a listed entity, with proceedings conducted via video conferencing from 3:00 pm to 5:39 pm Indian Standard Time.

Mr. Atle Vidar Nagel Johansen, Chairman of the Board, presided over the meeting from Bengaluru. Mr. Sanjay Sharma, Managing Director and CEO, presented an overview of the operational and financial performance for FY26, alongside updates on digital transformation and sustainability initiatives.

Voting Participation and Results

The company reported a high level of shareholder engagement, with 93.01% of votes polled against outstanding shares as on the cut-off date of August 12, 2026. A total of 153,092 shareholders were on record, with 90 members attending virtually (two promoters and 88 public shareholders) to ensure quorum.

Remote e-voting was administered by National Securities Depository Limited (NSDL) from August 16 to August 18, 2026. CS Pramod S M of BMP & Co. LLP served as the scrutinizer, confirming that all resolutions passed with the requisite majority.

Key Resolutions Approved

Shareholders voted to adopt the audited standalone and consolidated financial statements for the fiscal year ended March 31, 2026. The Board also secured approval for the reappointment of Mr. Per Haavard Skiaker Maelen, who retires by rotation.

Significant special business items included the ratification of two new equity incentive schemes:

• Employee Stock Option Plan 2025
• Management Stock Option Plan 2025

Members further approved extending the benefits of both plans to eligible employees of subsidiaries and the holding company.

Resolution-wise Voting Breakdown

The following table details the voting outcomes for each resolution:

Governance and Compliance

The Company Secretary and Compliance Officer, Mr. Kaushik Seshadri, facilitated the e-voting process. The Statutory Auditor and Secretarial Auditor were present via video conference. Their reports contained no qualifications or adverse remarks.

Promoter and Promoter Group shareholders voted unanimously in favour of all resolutions. Public institutional shareholders voted against the equity incentive plans (Resolutions 3-6), casting approximately 75.38% of their votes against these items. However, strong support from public non-institutional shareholders ensured the passage of all special resolutions.