- 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, reachingSEK 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 a solid earnings and operating profit per kilo growth, especially when comparing 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 percent (12 percent at fixed foreign exchange rates) to
Volumes in Chocolate & Confectionery Fats increased by 12 percent, driven by growth in all markets, particularly
In line with our strategy, we 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.
Further strengthened customer offering
M&A remains an important focus area and during the quarter we have acquired BIC Ingredients to further strengthen our position in the European lecithin market.
We have also entered a partnership with Progress Biotech to supply algae-based DHA for infant formula. This extends our product portfolio with a plant-based, vegan-friendly and sustainable oil that meets the highest demands on quality.
Continued progress within sustainability
We are proud to share that our improvement actions have led to a positive impact and good progress towards achieving our new targets. We have increased our verified deforestation-free palm volumes by 38 percent (69 vs. 50 in 2020) as well as traceability to plantation by 10 percent (77 vs. 70 in 2020). These are major steps towards our 2025 ambition - a palm oil supply chain that is 100 percent verified deforestation-free and 100 percent traceable to plantation.
We have furthermore signed a smallholder partnership with Nestlé and palm oil corporation Musim Mas to address deforestation outside of palm oil concession areas in the
150 years of Making Better Happen
AAK's successful story in
Concluding remarks
As we conclude the third quarter, there are still challenges affecting the global economy. However, we continue to navigate well, and we have a robust foundation, a strong financial track record, and a solid balance sheet. The passion, drive and agility in our organization have generated strong results and are strengths we build on going forward.
We offer plant-based, healthy, high value-adding oils and fats solutions based on our customer co-development approach. We continuously strengthen our portfolio of solutions that are good for both people and planet. Despite short- to mid-term uncertainty, we see no reason to adjust our view on the strong favorable underlying long-term trends in our markets. Thus, we remain prudently optimistic about the future and we are fully committed to Making Better Happen™.
Press and analyst conference
The Interim report for the third quarter 2021 will be presented today,
For more information, please contact:
Head of
Mobile: +46 737 16 80 01
E-mail: gabriella.grotte@aak.com
This information is information that
About AAK
Everything AAK does is about Making Better Happen™. We specialize in plant-based oils that are the value-adding ingredients in many of the products people love to consume. We make these products better tasting, healthier, and more sustainable. At the heart of AAK's offer is Customer Co-Development, combining our desire to understand what better means for each customer, with the unique flexibility of our production assets, and a deep knowledge of many products and industries, including Chocolate & Confectionery, Bakery, Dairy, Plant-based Foods, Special Nutrition, Foodservice and Personal Care. Our 3,900 employees support our close collaboration with customers through 25 regional sales offices, 15 dedicated Customer Innovation Centers, and with the support of more than 20 production facilities. Listed on Nasdaq Stockholm and with our headquarters in Malmö,
https://news.cision.com/aak-ab/r/aak-s-interim-report-for-the-third-quarter-2021---all-time-high-operating-profit-despite-demanding-m,c3443476
https://mb.cision.com/Main/871/3443476/1488727.pdf
https://mb.cision.com/Public/871/3443476/a65f9740d5bf69c2.pdf
(c) 2021 Cision. All rights reserved., source