AAK AB (Publ.) Reports Earnings Results for the Third Quarter and Nine Months of 2018; Provide Tax Rate Guidance for the Year 2018
October 25, 2018 at 02:54 am EDT
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AAK AB (publ.) reported earnings results for the third quarter and nine months of 2018. For the quarter, the company's operating profit, including a positive currency translation impact of SEK 16 million, reached SEK 526 million compared to SEK 475 million a year ago, an improvement of 11%. Net result amounted to SEK 359 million compared to SEK 315 million a year ago, an improvement of 14%. Net sales were SEK 7,034 million compared to SEK 6,553 million a year ago. Total operating income was SEK 7,065 million compared to SEK 6,578 million a year ago. Result before tax was SEK 489 million compared to SEK 444 million a year ago. Net result attributable to the parent company's shareholders was SEK 354 million compared to SEK 305 million a year ago. Cash flow from operating activities amounted to SEK 524 million compared to SEK 492 million a year ago. Acquisition of intangible and tangible assets was SEK 160 million compared to SEK 176 million a year ago. EBITDA was SEK 664 million compared to SEK 595 million a year ago. Earnings per share increased by 16%, to SEK 1.39 compared with SEK 1.20 a year ago. Return on Capital Employed (ROCE) was 15.7% compared with 15.6% at December 31, 2017.
For the nine months, the group reported net sales of SEK 20,600 million compared to SEK 19,842 million a year ago. Total operating income was SEK 20,712 million compared to SEK 19,921 million a year ago. Operating profit (EBIT) was SEK 1,440 million compared to SEK 1,315 million a year ago. Result before tax was SEK 1,348 million compared to SEK 1,221 million a year ago. Net result was SEK 986 million compared to SEK 863 million a year ago. Net result attributable to the parent company's shareholders was SEK 971 million compared to SEK 843 million a year ago. Cash inflow from operating activities was SEK 524 million compared to SEK 255 million a year ago. Acquisition of intangible and tangible assets was SEK 465 million compared to SEK 526 million a year ago. EBITDA was SEK 1,854 million compared to SEK 1,680 million a year ago. Earnings per share increased by 15%, to SEK 3.83 compared with SEK 3.32 a year ago. Return on Capital Employed was 15.7% compared to 15.6 a year ago. Net debt as at September 30, 2018 was SEK 2,918 million.
For the year 2018, the company expected tax rate and remain at the 27% to 28% in that guidance.
AAK publ AB, also known as AarhusKarlshamn publ AB, is a Sweden-based holding company active primarily in the food processing sector. The Company refines vegetable oils for specialized products. The Company is organized, along with its subsidiaries, into three business segments: the Food Ingredients segment includes baking fat, dairy fat alternatives, Ice cream fats, infant formulas and oil/fats ingredients, among others; the Chocolate & Confectionery Fats segment provides chocolate and confectionery advantages, ranging from products developed for better sensory, health and longer shelf life to cost efficiency, know-how, technology and service, and the Technical Products & Feed segment includes golden wax, fatty acids, glycerin, deinking chemicals and animal feed. The Company operates Kamani Oil Industries Pvt Ltd. as a majority owned subsidiary.
AAK AB 
