AAK Proud of “All-Time High” Operating Profit for Q1

9ec6d4e0-fb08-4856-bd1d-db20edc2044darticleimage.jpg

21 Apr 2017 --- Swedish-Danish company and producer of vegetable oils and fats AAK has reported an all-time high operating profit for the first quarter 2017 which reached SEK 431 million (US$48 million), up 13% on last year. The company says how total volumes continued to grow and were 10% up, while organic volume growth was 5%, against a backdrop of strong demand for speciality and semi-speciality products which also generated a volume growth of 6%.

Food Ingredients improved 9%, reaching SEK 249 million (US$277 million). 

“We are happy and proud to see that our determined, targeted and hard work based upon our clear strategy is yielding good results. Again, a record-high operating profit was achieved with a double-digit year-on-year improvement for the Group, a trend since 2010. This is despite parts of the world markets experiencing material challenges,” says AAK CEO Arne Frank.

"Based on AAK's customer value propositions for health and reduced costs, and our customer product co-development and solutions approach, we continue to remain prudently optimistic about the future. The main drivers are the continued positive underlying development in Food Ingredients and the continued improvement in Chocolate & Confectionery Fats.”

In Dairy, the segment continued the strong trend from 2016 and reported high double-digit organic volume growth, where North Latin America, Asia, and the US showed particularly strong growth.

After some challenges, the Bakery segment was back to organic growth in several important regions, however the European market remained a challenge, while Special Nutrition reported medium single-digit volume growth, but with a significantly better product mix compared to the corresponding quarter last year. This was driven by a continued volume growth for our Infant Nutrition product range Akonino, building on exceptionally strong volume growth last year.

Our other Infant Nutrition product range InFat®, sold through Advanced Lipids AB, a joint venture of AAK and Enzymotec, had a strong volume growth in the quarter.

The Foodservice segment reported declining volumes in the quarter. This was mainly due to more challenging market conditions in Europe. 

Chocolate & Confectionery Fats reported a result of SEK 196 million (US$218 million), an improvement of 23%. Both total volume growth and organic volume growth was 17% in the quarter. There was continued strong organic volume growth for both speciality and semi-speciality products, with several showing exceptional volume growth – in mature as well as in emerging markets. 

Related Articles

Food Ingredients News

Arla goes Pro with launch of new foodservice division

20 Oct 2017 --- Arla Foods has launched its new foodservice division, Arla Pro, which was created especially for chefs. The launch happened at Dinerama, a global street food market in Shoreditch, London, UK.

Food Ingredients News

South Africa: Coca-Cola stays in touch with changing tastes and consumers preferences in the country

20 Oct 2017 --- Coca-Cola in South Africa, in line with its global long-term business strategy, is evolving to become a total beverage company that can be even more responsive to people’s changing tastes and needs. 

Business News

UK signs up to Dairy Declaration of Rotterdam

20 Oct 2017 --- The UK dairy industry has endorsed a declaration to promote the sustainability of dairy systems around the world. The Dairy Declaration of Rotterdam, a unique partnership between the International Dairy Federation (IDF) and the Food and Agricultural Organization of the United Nations (FAO) signals a recognition of the dairy sector’s commitment towards feeding the world with safe, nutritious and sustainable products.

Business News

EDA criticizes traffic light labeling plans for ignoring “good” nutrition

19 Oct 2017 --- The European Dairy Association (EDA) has slammed the new traffic lights labeling system claiming that it falls short in certain areas relating to nutrition, dietary recommendations and what to limit in people’s diets. While the EDA believes and supports the fact that consumers should be fully informed on the nutritional properties of foods – which is one of the legal requirement of the Food Information to Consumers Regulation (EU) No 1169/2011 – it says that new Evolved Nutrition Labelling Initiative (ENL) proposals don’t go far enough and is an inadequate system for milk and dairy products. 

 

Business News

Frutarom confirms eighth purchase of 2017: Acquires 60 percent of Mighty Co.

19 Oct 2017 --- Frutarom is continuing its momentum of acquisitions with an eighth purchase this year, by acquiring 60 percent of the shares of the Thai flavors company The Mighty CO. LTD. (including the activity of Maharaj Food Co. Ltd. and Mighty International Co. Ltd.) for approximately THB 393 million (approx. US$12 million) and at a valuation of THB 655 million (approx. US$20 million). 

More Articles