How Orkla explains the 11m-euro losses

Orkla Foods Romania, the producer of Unirea margarine and Tomi ketchup, last year posted losses standing at 10.8m euros, against turnover worth a little above 25m euros, according to the information on Finance Ministry’s website. The group’s representatives say losses registered last year were influenced by the group’s decision to amortise the intangible assets of the domestic subsidiary. The company’s restructuring by moving production lines also had an impact over the figures of Orkla Foods Romania and Productie Ardealul, the two companies through which Orkla group operates in Romania. “In 2007, Orkla group decided to amortise intangible assets for Orkla Foods Romania, a decision that was partially reflected in the financial situations of late 2008, as they were reported to the Finance Ministry. If we didn’t take into account this impact, operating income would be better than the targeted one,” stated Manuela Banu, 42, CEO of Orkla Foods. She did not specify, though, the value of operating income. In 2008, Orkla Foods Romania generated turnover worth 25.2m euros, down 12% from 2007.