AAK: Interim Report for the Third Quarter 2015

Malmo / SE. (aak) Swedish AAK Group (former AarhusKarlshamn AB) announced its interim report for the third quarter 2015. «Based on AAK’s customer value propositions for health and reduced costs, and our customer product co-development and solutions approach, we continue to remain prudently optimistic about the future», says Arne Frank, CEO and President, AAK Group. «The main drivers are the continued positive underlying development in Food Ingredients and the continued improvement in Chocolate + Confectionery Fats». Highlights:

  • Again, a record high operating profit was achieved, reaching 376 million SEK (331 excluding net positive, non-recurring items of 13 million SEK), an improvement of 14 percent. The currency translation impact was positive 27 million SEK.
  • Operating profit at fixed foreign exchange rates, and adjusted for last year’s divestment of Binol and non-recurring items improved by seven percent.
  • Volumes increased by two percent. Organic volume growth was also two percent.
  • Food Ingredients reached a result of 230 million SEK (211), an improvement of nine percent.
  • Chocolate + Confectionery Fats improved by 33 percent and reached 166 million SEK (125).
  • Technical Products + Feed gained a result of eleven million SEK (20).
  • Operating cash flow including changes in working capital amounted to 258 million SEK (negative 52).
  • Earnings per share increased by twelve percent, to 6.03 SEK (5.36).
  • Return on Capital Employed (ROCE), calculated on a rolling twelve months basis, was 15.8 percent (16.0 at December 31, 2014).
  • AAK has during the quarter launched TROPICAO™, the latest innovation within Chocolate + Confectionery Fats. Chocolate with TROPICAO™, which has been developed for hot climate markets, will maintain a non-bloom appearance as well as its sensory attributes when exposed to higher temperatures.
  • During September, AAK acquired 51 percent of Kamani Oil Industries Pvt Limited, one of the leading speciality and semi-speciality oils and fats companies in India. Kamani had last year revenues of approximately 1’000 million SEK, with an annual volume of 100’000 MT.
  • AAK has also during the quarter established a partnership with Miyoshi Oils + Fats Co. by forming a new company together for the Japanese market, AAK Miyoshi JP. AAK will own 70 percent of the new company and Miyoshi Oils and Fats Co. will own 30 percent.