AAK: Proposes to Postpone Dividend for 2019

Malmo / SE. (aak) The ongoing corona pandemic is profoundly impacting people’s health, societies, and business operations across the world. As a supplier of ingredients to the crucial food supply chain, Swedish AAK Group (former AarhusKarlshamn AB) has a very important role to play right now. All of the company’s production plants around the world have strong contingency plans in place to secure operations and inbound/outbound logistics so that food manufacturers can maintain their production of food products.

To date, AAK has not experienced any material business disruptions. Food supply will remain essential and a top priority going forward. However, the volatility and uncertainty in every step of the supply chain have increased within all industries that AAK serves.

AAK has a robust foundation with a strong financial track record and a solid balance sheet. However, as an additional precaution due to the current situation, the Board of Directors of AAK proposes to postpone the decision on the dividend for 2019. The dividend proposal for 2019 was SEK 2.10 per share.

«With AAK’s solid financial position our assessment is that the previously proposed dividend could still be justified,» says Georg Brunstam, Chairman of the Board. «However, the Board of Directors is of the opinion that a resolution on dividend should be made at an extraordinary general meeting later this year when the effects of the corona pandemic have become clearer and market conditions hopefully have stabilized.»