Second quarter 2025

Interim report

Financial highlights

Q2 2025

Volumes declined by 2 percent to 490,000 MT (498,000), excluding the effect of the Hillside divestment. Including the impact of the divestment, volumes declined by 7 percent.
A one-time restructuring cost of SEK 250 million was recognized as an item affecting comparability (IAC) in relation to the previously announced cost performance program, Fit-to-Win. The restructuring cost was included under Group Functions.
Operating profit increased by 16percent, excluding items affecting comparability, the Hillside divestment and currency effects.
Profit for the period totaled SEK 851 million (809), excluding items affecting comparability.
Earnings per share equaled SEK 3.26 (3.11), excluding items affecting comparability.
Cash flow from operating activities amounted to SEK 524 million (1,002).
Return on Capital Employed (ROCE), R12M, was 21.9 percent (22.4 percent on December 31, 2024), excluding items affecting comparability.

Q1-Q2 2025

Volumes declined by 3 percent to 993,000 MT (1,028,000), excluding the effect of the Hillside divestment. Including the impact of the divestment, volumes declined by 8 percent.
Operating profit increased by 11percent, excluding items affecting comparability, the Hillside divestment and currency effects.
Profit for the period totaled SEK 1,785 million (1,743), excluding items affecting comparability.
Earnings per share equaled SEK 6.84 (6.71), excluding items affecting comparability.
Cash flow from operating activities amounted to SEK 32 million (1,719).

	Q2 2025	Q2 2024	Δ %	Q1-Q2 2025	Q1-Q2 2024	Δ %	R12M 2025	Full year 2024
Volumes, '000 MT	490	525	-7	993	1,081	-8	2,085	2,173
Volumes excl. divested operation, '000 MT1)	490	498	-2	993	1,028	-3	2,031	2,066
Operating profit, SEK million	912	1,118	-18	2,173	2,372	-8	4,697	4,896
Operating profit excl. divested operation1) and items affecting comparability2), SEK million	1,162	1,098	+6	2,423	2,342	+3	4,893	4,812
Operating profit per kilo, SEK	1.86	2.13	-13	2.19	2.19	+0	2.25	2.25
Operating profit per kilo excl. divested operation1) and items affecting comparability2), SEK	2.37	2.20	+8	2.44	2.28	+7	2.41	2.33
Profit for the period, SEK million	643	809	-21	1,577	1,743	-10	3,376	3,542
Profit for the period excl. items affecting comparability2) , SEK million	851	809	+5	1,785	1,743	+2	3,541	3,542
Earnings per share, SEK	2.47	3.11	-21	6.06	6.71	-10	12.97	13.62
Earnings per share, excl. items affecting comparability2) , SEK	3.26	3.11	+5	6.84	6.71	+2	13.59	13.37
Cash flow from operating activities, SEK million	524	1,002	-	32	1,719	-	-	2,352
Return on Capital Employed (R12M), percent	20.9	21.5	-0.6 p.p.	20.9	21.5	-0.6 p.p.	20.9	22.4
Return on Capital Employed excl. items affecting comparability2) (R12M), percent	21.9	21.5	+0.4 p.p.	21.9	21.5	+0.4 p.p.	21.9	22.4

Rolling 12 months, '000 MT

1) Divestment of North American Foodservice site (Hillside) completed on December 31, 2024.

2) Includes a one-time restructuring cost of SEK 250 million, recognized in Q2 2025.

Strong growth in operating profit despite a slight decline in volumes

In the second quarter, we continued to successfully execute on our strategic priorities: improving our product mix, driving operational efficiency and productivity across the organization, despite a continued dynamic global environment. At the same time, we are accelerating innovation and strengthening collaboration with our customers to stay ahead of their needs and deliver solutions that drive value — efforts that also aim to offset the softer volume development currently impacting parts of both our business and the industry at large.

Business performance

Operating profit in the second quarter increased by 16 percent at fixed exchange rates. This excludes the year-over-year impact of the Hillside divestment, as well as the SEK 250 million one-time restructuring cost related to our cost performance program, 'Fit-to-Win'. The latter was announced in connection with the first quarter results.

The growth in the quarter was broad-based, with improvements across all three business areas, and was achieved despite a slight decline in volumes.

Overall, volumes declined by 2 percent in the second quarter compared to the same period last year, excluding the negative impact of the Hillside divestment. This was driven by a 7 percent decline in Chocolate & Confectionery Fats and a 3 percent decline in Food Ingredients. Technical Products & Feed grew by 18 percent year-over-year.

Profitability was strong, with operating profit per kilo, excluding the one-time restructuring cost, reaching SEK 2.37 in the quarter. This represented an increase of 8 percent — or 18 percent at fixed exchange rates — both excluding the Hillside divestment. The improvement was partly driven by continued internal optimization, including productivity and procurement enhancements at our oil refining plants, and partly by better portfolio and price management, with continued higher sales of specialty solutions. Favorable market conditions for cocoa butter alternatives, as well as a positive product mix, further supported second-quarter profitability.

Operational cash flow was positive at SEK 524 million, as the impact of raw material price changes tapered off.

Decentralized model mitigates trade volatility

The strength of our decentralized setup continues to be a key advantage in navigating a complex global landscape. By operating close to our customers, we reduce lead times, simplify logistics, and minimize our exposure to geopolitical and cross-border challenges. Still, for globally traded raw materials like palm oil, international sourcing remains necessary — and with that comes exposure to trade policy shifts.

Following the U.S. tariff changes announced in April, we can confirm that these have had no material impact on our second-quarter results. That said, the development has introduced a degree of uncertainty in the market. We continue to actively evaluate alternative sourcing options where we can ensure quality and reliability. Thanks to our

localized production and proactive sourcing approach, we do not anticipate any material impact on our business going forward, given the current status.

Progression towards the 2030 Aspiration

We are progressing according to plan with our cost performance program, Fit-to-Win, which was introduced at the Capital Markets Day in November 2024 and launched in connection with the first quarter report. Key initiatives are being implemented across the organization, with a focus on simplification, efficiency, and value creation.

As previously communicated, the program is expected to generate annual cost reduction of approximately SEK 300 million, with SEK 50 million anticipated already this year and full run-rate impact anticipated by mid-2026. A small part of the SEK 50 million was reflected in our second-quarter results, with a larger impact expected over the remainder of the year. A one-time restructuring cost of SEK 250 million was recognized in the quarter.

Concluding remarks

Looking ahead, we remain prudently optimistic about AAK's long-term potential and fully committed to delivering on our 2030 Aspiration. At the same time, we continue to monitor the evolving global trade landscape and softer demand in parts of our end markets, along with their potential impact on the remainder of 2025 and 2026. To help mitigate this, we are also actively working to initiate volume growth through stronger commercial execution and deeper customer engagement.

By maintaining focus and executing with discipline, we are confident in our ability to drive long-term value. As a key enabler of plant-based solutions, AAK is also well-positioned to support the transition toward a more sustainable food system — helping our customers to offer better, healthier, and more sustainable choices.

Johan Westman, President and CEO

AAK Group, Q2 2025

Volumes

Volumes totaled 490,000 MT (525,000), a decrease of 7 percent compared to last year. Volumes, excluding the impact of the Hillside divestment, declined by 2 percent.

Net sales

Sales reached SEK 11,300 million (11,033), an increase of 2 percent, including a negative currency translation effect of SEK 1,065 million. The increase in net sales was primarily driven by higher raw material prices and increased sales of specialty oils.

Operating profit

Operating profit, excluding items affecting comparability, totaled SEK 1,162 million (1,118), corresponding to an increase of 4 percent compared to the same quarter in 2024. Currency translation had a negative effect of SEK 109 million, of which SEK 72 million was related to Food Ingredients and SEK 37 million to Chocolate & Confectionery Fats. Operating profit, excluding items affecting comparability, at fixed foreign exchange rates increased by 14 percent.

Operating profit per kilo, excluding items affecting comparability, totaled SEK 2.37 (2.13), an increase of 11 percent. Currency translation had a negative effect of SEK 0.22 per kilo. At fixed foreign exchange rates, operating profit per kilo, excluding items affecting comparability, increased by 22 percent.

The improvement was partly driven by continued internal optimization, including productivity and procurement enhancements in our oil refining plants, and partly by better portfolio and price management, with continued higher sales of specialty solutions. Favorable market conditions for cocoa butter alternatives, as well as a positive product mix, further supported second quarter profitability.

Items affecting comparability

In connection with the first-quarter report, we announced the launch of a cost performance program aimed at generating annual savings of SEK 300 million. The program, named Fit-to-Win, resulted in an estimated non-recurring cost of SEK 250 million in the second quarter, impacting Group Functions.

Net financial costs and tax costs

Net financial costs totaled SEK 39 million (48). Financial costs decreased, mainly due to lower interest rate. Reported tax costs correspond to an average tax rate of 26 percent (24). The expenses reported as items affecting comparability could not yet be utilized as a tax credit in full. This increased the average tax rate by 2 percentage points compared to the underlying annual tax rate of 24 percent.

Earnings per share

Earnings per share equaled SEK 2.47 (3.11). Excluding items affecting comparability, earnings per share equaled SEK 3.26 (3.11).

Cash flow and investments

Operating cash flow, including changes in working capital, amounted to SEK 524 million (1,002). Cash flow from working capital amounted to negative SEK 155 million (negative 271), mainly due to negative cash flows from accounts receivable, inventory and other working capital, partially offset by a positive cash flow from accounts payable. The negative cash flow impact on accounts receivable was primarily driven by the increase in raw material prices.

Cash outflow from investment activities amounted to SEK 367 million (306). Capital expenditure primarily related to maintenance investments, productivity improvements, and capacity increases.

Return on Capital Employed (ROCE)

Calculated on a rolling 12-month basis, ROCE was 20.9 percent (22.4 on December 31, 2024). Excluding items affecting comparability, ROCE was 21.9 percent.

Financial position

The equity-to-asset ratio was 57 percent (59 percent on December 31, 2024). Net debt on June 30, 2025, totaled SEK 3,663 million (SEK 1,696 million on December 31, 2024). Net debt/EBITDA totaled 0.66 (0.29 as of December 31, 2024) and 0.63, excluding items affecting comparability.

On June 30, 2025, the Group had total credit facilities of SEK 7,857 million (8,388 as of December 31, 2024), of which SEK 6,556 million (6,765 as of December 31, 2024) was in committed credit facilities. Unused committed credit facilities on June 30, 2025 totaled SEK 2,390 million (4,929 as of December 31, 2024). Non-committed credit facilities totaled SEK 1,301 million (1,623 as of December 31, 2024), SEK 982 million (1,428 as of December 31, 2024) of which was unused.

Selected events

Annual General Meeting 2025

AAK's Annual General Meeting was held on May 8th in Malmö, Sweden, with shareholders representing 75 percent of the total votes.

During the meeting, President and CEO Johan Westman highlighted key achievements from 2024 and reiterated the company's ongoing commitment to sustainability. To access the presentation and other AGM-related materials, please visit AAK.com.

AAK's CEO Johan Westman giving his presentation at the 2025 AGM.

PAI report 2025 released

AAK released its Principal Adverse Impacts (PAI) report for 2025, which enhances transparency and supports the investment community in assessing AAK from a sustainability perspective. The report describes AAK's ESG performance through a series of standardized metrics and is a valuable tool for investors to monitor the adverse impacts of their investments.

This is the third consecutive year AAK has published a PAI report, following positive feedback from investors. You can find the full PAI report on the AAK website.

Incident at Karlshamn facility

On the night of June 19th, a fire occurred at AAK's Karlshamn site, affecting two external tanks at the Fatty Acid Plant (nonfood production). The fire was swiftly extinguished and the situation was managed well. No injuries were reported, and the incident was contained to the insulation of the tanks.

All other operations at the facility remained unaffected, and production has continued since the fire was extinguished. The incident did not have a material impact on AAK's financial performance for the second quarter, and any disruption to volumes was limited. An investigation into the root cause is currently underway.

Nese Tagma appointed President Sourcing, Trading & Sustainability

We are pleased to share that Nese Tagma will join AAK as President of Sourcing, Trading & Sustainability in September 2025.

Nese brings extensive international experience from Cargill, where she most recently served as Managing Director Strategy & Innovation for the Global Edible Oils business. Prior to that, she was Managing Director for Edible Oils in Europe & Russia. Throughout her career, she has held senior roles across sourcing, trading, and general management in markets including France, Turkey, Romania, Belgium, and the Netherlands.

Nese will succeed Tim Stephenson, who is retiring after a long and successful career with AAK. We thank Tim for his outstanding contributions and wish him all the best in his well-deserved retirement.

Nese Tagma joins AAK as President Sourcing, Trading & Sustainability.