- Total volumes decreased by 4 percent, to 559,000 MT (583,000).
-
Operating profit, including a positive currency translation impact of
SEK 148 million , increased by 28 percent, reachingSEK 822 million (642). At fixed foreign exchange rates, operating profit increased by 5 percent. -
Profit for the period amounted to
SEK 611 million (464). -
Earnings per share amounted to
SEK 2.36 (1.80). -
Cash flow from operating activities amounted to negative
SEK 40 million (negative 20). -
Return on Capital Employed (ROCE), R12M, was 14.8 percent (15.6 at
December 31, 2021 )
Business Areas
- Food Ingredients - operating profit increased by 23 percent to
SEK 476 million (387). -
Chocolate & Confectionery Fats - operating profit increased by 32 percent to
SEK 310 million (234). -
Technical Products & Feed - operating profit reached
SEK 76 million (56), an increase by 36 percent.
CEO's comments
Yet another quarter has passed where we see high inflation that affects the global economy.
We are, despite high uncertainty and volatility, doing well. We have been able to manage the general price increases, and we have diligently worked with our product portfolio management successfully and effectively. During the quarter, raw material prices have declined from the record high levels seen during the year's first half. This is expected to have a positive effect on working capital and cash flow in the first half of next year.
Thanks to strong operational excellence we have delivered a strong third quarter in very challenging times. Operating profit grew by 28 percent, and operating profit per kilo increased by 34 percent, supported by a positive currency translation effect. All business areas contributed to the increase in operating profit. However, we see a slight decline in volumes during the quarter, down 4 percent versus last year. This is primarily a result of our exit from
Business performance
Chocolate & Confectionery Fats reported a strong quarter, with volumes up by 1 percent and up by 11 percent excluding
Food Ingredients delivered a solid quarter with operating profit up by 23 percent. The increase was mainly driven by
Technical Products & Feed delivered a strong quarter, with operating profit up 36 percent despite declining volumes for both Feed and Technical Products. The solid trend for replacing fossil ingredients continues, and we remain well-positioned to serve this market.
Investing in new technologies
In July we announced our investment in the food tech startup Green-On, to accelerate improved sustainability in future food applications. The concept is based on so-called Power-to-X technology. If scalable, this concept will produce a fat with functionalities needed in future food, and to a much lower environmental impact than any other known technology today, making it a perfect fit with AAK's strategy.
This is a result of AAK's partnership with
Concluding remarks
Despite the challenges and uncertainties that we faced throughout the third quarter, we continued to navigate well and delivered a strong result. As an important supplier of plant-based ingredients for food and technical products, we are well positioned to manage risks and deliver value - something we have proven in the recent very dynamic years.
Although we expect continued high inflationary pressure and a demanding macroeconomic climate, we stay confident and 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 2022 will be presented today,
For more information, please contact:
Acting Head of
Mobile: +46 708 37 66 77
E-mail: johan.holmqvist@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 4,000 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,
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