Preliminary results: Strong start to the year driven by productivity improvements, speciality solutions and favorable market conditions
AAK’s well-diversified business maintained its strong momentum from last year, resulting in record-high operating profit for the first quarter of 2023, largely driven by strong operating profit per kilo in Food Ingredients and Chocolate & Confectionery Fats. This was achieved via productivity improvements and a continued focus on speciality solutions. Additionally, the first-quarter operating profit benefitted from favorable year-over-year market conditions, including an improved ability to compensate for inflationary effects.
Volumes declined, largely due to the expected effects of the controlled exit from the Russian market and the optimization program in Bakery. Volumes in Technical Products & Feed grew slightly.
| Preliminary financial results | Q12023 | Q12022 | Δ % |
| Volumes, ‘000 MT1 | 541 | 575 | -6 |
| Food Ingredients | 337 | 362 | -7 |
| Chocolate & Confectionery Fats1 | 124 | 137 | -9 |
| Technical Products & Feed | 80 | 76 | +5 |
| Operating profit, SEK million | 952 | 664 | +43 |
| Food Ingredients | 582 | 369 | +58 |
| Chocolate & Confectionery Fats | 327 | 258 | +27 |
| Technical Products & Feed | 108 | 81 | +33 |
| Group Functions | -65 | -44 | -48 |
| Operating profit per kilo, SEK | 1.76 | 1.15 | +53 |
| Food Ingredients | 1.73 | 1.02 | +70 |
| Chocolate & Confectionery Fats | 2.64 | 1.88 | +40 |
| Technical Products & Feed | 1.35 | 1.07 | +26 |
1Excluding Russia, both the total volumes for the group and the volumes in Chocolate & Confectionery Fats declined by 3%, respectively, compared to Q1 2022.
The financial information above is preliminary. AAK will release its full interim report for the first quarter on May 4, 2023. In connection with this, a conference call will be hosted on May 4, 2023, at 10.00 CET. The invitation with dial-in details will be sent out well before the call.
For more information, please contact:
Carl Ahlgren
Head of IR & Corporate Communications
Mobile: +46 70 681 07 34
E-mail: carl.ahlgren@aak.com
This information is information that AAK AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 18:00 CET on April 13, 2023.
About AAK
Everything AAK does is about Making Better Happen™. We specialize in plant-based oils that are the value-adding ingredients in the products people love to consume. We make these products better tasting, healthier, and more sustainable. At the heart of AAK's offering is Customer Co-Development, combining our desire to understand what better means for each customer with the unique flexibility of our production assets and deep knowledge across products and industries. 4,000 employees support our close collaboration with customers through 25 regional sales offices, 15 dedicated Customer Innovation Centers and support of more than 20 production facilities. Listed on Nasdaq Stockholm and with our headquarters in Malmö, Sweden, AAK has been Making Better Happen for more than 150 years.