AAK Performance Boosted by Raw Material Prices

Feb 10 2012 --- Volume increased by 2 percent due to increases in speciality volumes, including the impact of the Golden Foods/Golden Brands acquisition; commodity volumes were down, mainly in the UK as expected.

AarhusKarlshamn AB (AAK) has reported that net sales in the fourth quarter increased to SEK 4,483 million (EUR508 million) (SEK 3,930), mainly due to increased raw material prices and a better product mix, partly offset by a negative currency translation impact of SEK 137 million. Volume increased by 2 percent due to increases in speciality volumes, including the impact of the Golden Foods/Golden Brands acquisition; commodity volumes were down, mainly in the UK as expected.

Operating profit amounted to SEK 265 million (251), an improvement of 6 percent. At fixed exchange rates operating profit improved by 10 percent.

Earnings per share amounted to SEK 4.82 (4.98), a decrease of 3 percent, mainly due to higher taxes.

For the full year 2011, net sales increased to SEK 16,695 million (EUR1,893 million) (SEK 14,808) mainly due to increased raw material prices and a better product mix, offset by a negative currency translation impact of SEK 983 million. Volume overall decreased by 1 percent due to lower commodity volumes, mainly in the UK. Speciality volumes continue to increase.

Operating profit amounted to SEK 911 million (824), an improvement of 11 percent. At fixed exchange rates operating profit improved by 18 percent.

Earnings per share amounted to SEK 14.72 (14.15), an improvement of 4 percent despite higher interest rates.

“The impact on our industry from the more difficult general economy in Europe is difficult to predict. However, with dramatic food price inflation in 2010 at least for now, behind us, AAK’s customer value propositions for health and reduced costs and the AAK Acceleration program, we remain prudently optimistic for the future mainly driven by the Food Ingredients business”, says CEO and President Arne Frank.