AAK Performance Boosted by Food Ingredients
7 Feb 2013 --- AarhusKarlshamn has reported that net sales amounted to SEK 4,205 million (4,483), mainly due to hurricane Sandy and lower raw material prices offset by acquisitions, better product mix and a positive currency translation. Volumes increased by 2 percent compared to fourth quarter 2011 mainly due to acquisitions and increasing semi-speciality and speciality volumes.
Operating profit adjusted for Sandy for the fourth quarter was a record high, reaching SEK 292 million (265), an improvement of 10 percent. Operating profit after hurricane Sandy for the fourth quarter amounted to SEK 271 million (265), an improvement of 2 percent.
The largest business area, Food Ingredients, reported record high operating profit adjusted for hurricane Sandy of SEK 220 million (151), an increase of 46 percent and increased volume of 6 percent.
The business area Chocolate & Confectionery Fats reported a volume decline by 5 percent and continued pressure on margins. Operating profit adjusted for hurricane Sandy amounted to SEK 82 million (115).
The smallest business area, Technical Products & Feed, continued to experience challenging markets conditions. Operating profit amounted to SEK 21 million (21).
The AAK plants in New Jersey, US which were affected by hurricane Sandy are back in operation.
The integrations of the acquired operations continue according to plans.
Earnings per share amounted to SEK 5.01 (4.82), an increase of 4 percent.
Concluding remarks: “The impact on our industry from the more difficult general economy in Europe is, as we all know, really difficult to predict. However, based on AAK’s customer value propositions for health and reduced costs, our customer product co-development and solutions approach, and the AAK Acceleration program, we continue to remain prudently optimistic for the future. The main drivers are expected to be our strong Food Ingredients business and the expected recovery in our Chocolate & Confectionary Fats business”, says CEO and President Arne Frank.
