January 30, 2023

AAK’s Interim report for the third quarter 2021

AAK Group

  • Total volumes increased by 3 percent, to 583,000 MT (565,000).
  • Operating profit, including a negative currency translation impact of SEK 35 million, increased by 7 percent, reaching SEK 642 million (602).
  • Profit for the period amounted to SEK 464 million (436).
  • Earnings per share amounted to SEK 1.80 (1.69).
  • Cash flow from operating activities amounted to negative SEK 20 million (482).
  • Return on Capital Employed (ROCE), R12M, was 15.5 percent (14.2 at December 31, 2020).

Business areas

  • Food Ingredients – operating profit increased by 2 percent to SEK 387 million (381).
  • Chocolate & Confectionery Fats – operating profit reached SEK 234 million (221), an increase by 6 percent.
  • Technical Products & Feed – operating profit reached SEK 56 million (34), an increase by 65 percent.

CEO’s comments: “We continued our strong performance in the third quarter with increased volumes and solid earnings and operating profit per kilo growth, especially when compared to the strong corresponding quarter last year. Chocolate & Confectionery Fats and Technical Products & Feed both delivered double-digit volume growth, while Food Ingredients was slightly down with a mixed volume development in its underlying segments. The negative impact from the pandemic is still present and affecting our business, but to a lesser extent than in the previous quarter. All business areas contributed to the Group’s overall profitability, despite a negative currency translation impact and a macro-economic climate characterized by continued high raw material prices, disturbances in global logistics, and cost inflation.”

Business performance

Operating profit increased by 7% (12% at fixed foreign exchange rates) to SEK 642 million (602), an all-time high, very much driven by our continued focus on specialty and semi-specialty solutions as well as improved cost-efficiency. Operating profit per kilo increased by 3% and reached SEK 1.10 (1.07).

Volumes in Chocolate & Confectionery Fats increased by 12%, driven by growth in all markets, particularly South Latin America and Europe. On the back of higher volumes and an improved cost level, we managed to deliver a very strong operating profit.

In line with their strategy, AAK prioritized high value-adding products which impacted our product mix in Food Ingredients. Volumes showed a slight decline while operating profit per kilo increased 4 percent. Plant-based Foods, Special Nutrition, and Foodservice all reported volume growth.

Technical Products & Feed reported very strong volume and profit growth, supported by increased demand for natural ingredients for technical products as well as a continued strong performance in our crushing operations.

150 years of making better happen

AAK’s successful story in Aarhus, Denmark started in 1871. In September, AAK celebrated its first 150 years as a pioneer and leader in plant-based oils and fats.

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