Earnings Release • Jul 20, 2011
Earnings Release
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| SEK Million | Q2 | Q2 | Q1-2 | Q1-2 | ||
|---|---|---|---|---|---|---|
| 2011 | 2010 | % | 2011 | 2010 | % | |
| Net Sales | 3,907 | 3,594 | + 9 | 7,750 | 7,104 | + 9 |
| Gross Contribution | 831 | 852 | -2 | 1,662 | 1,692 | -2 |
| Operating profit | 196 | 164 | +20 | 400 | 342 | +17 |
| Operating profit per kilo | 0.60 | 0.46 | + 30 | 0.59 | 0.48 | +23 |
| Financial net | -30 | -16 | +88 | -45 | -30 | +50 |
| Net result | 126 | 109 | +16 | 265 | 223 | +19 |
| Earnings per share | 3.04 | 2.65 | +15 | 6.42 | 5.44 | +18 |
Operating profit for the second quarter 2011, excluding nonrecurring items of SEK 3 million, reached SEK 196 million (164), an improvement of 20 percent. At fixed exchange rates, operating profit improved by 32 percent. Earnings per share improved by SEK 0.39 or up 15 percent from SEK 2.65 to SEK 3.04.
During the second quarter of 2011 commodity volumes continued to decline, consistent with the previous quarter. The largest contributor to this reduction is our business in the UK which is now being restructured to match the future anticipated volumes with a better mix of speciality products.
Volumes of speciality products in Food Ingredients, Chocolate & Confectionery Fats and Technical Products & Feed continued to increase in line with strategy and the action plans defined in AAK Acceleration. Underlying margins in Chocolate & Confectionery Fats continued to be stable.
In the largest business area, Food Ingredients, operating profit reached SEK 120 million (101*), an improvement of 19 percent. A continued increased proportion of high-value products with a more profitable product mix led to an operating profit at fixed exchange rates of SEK 131 million (101), an improvement of 30 percent.
The positive development continued in most speciality product areas, in particular for Infant Nutrition (Baby Food) and Dairy Industry.
In the second quarter of 2011 total volumes declined by 13 percent compared to the corresponding quarter in 2010. This decline is consistent with the trend during the previous quarter largely effected by refocusing in the UK market on speciality products. Accordingly, operating profit per kg in this business area has improved significantly.
The operating result amounted to SEK 70 million (57), an improvement of 23 percent. Volumes increased by 7 percent compared to last year. Operating profit at fixed exchange rates amounted to SEK 80 million (57), an improvement of 40 percent. Underlying margins in Chocolate & Confectionery Fats continued to be stable. The general market conditions remained stable.
Operating profit was SEK 28 million (28*). Volumes in the second quarter 2011 decreased by 7 percent compared to the corresponding quarter last year, mainly due to a planned, longer maintenance stop in June affecting primarily low margin feed deliveries. Speciality product volumes in Binol increased.
As announced on July 1, 2011 AAK has acquired the Golden Foods/Golden Brands business of Louisville, Kentucky, the leading North American processor of speciality fats and oils and manufacturer of shortenings for the bakery and food service industries.
The acquisition of Golden Foods/Golden Brands in the US is an integral part of the AAK Acceleration program, which calls, beyond organic growth, for selective acquisitions that synergistically benefit our customers; it significantly strengthens our ability to supply existing and new customers with a broader portfolio of speciality oils and fats solutions. As one of the largest speciality oil markets in the world, expansion in the US is also particularly exciting.
The product lines that AAK has acquired expand and complement our existing product portfolio and speciality strategy. The Golden Foods/Golden Brands organization will enjoy some AAK products and create good opportunities for mutual cross selling to the combined customer base. Further, the Louisville, Kentucky location also adds a new geographic dimension to our existing site in Port Newark, New Jersey, with significant advantages for all customers but particularly those located in the Midwest. From
now on, AAK's North American customers will enjoy service from two production sites in the US.
Founded in 1982 and located in Louisville, Kentucky, Golden Foods/Golden Brands employs approximately 160 people and had revenue of approximately USD 120 million in 2010.
The acquisition is expected to have only limited impact on the 2011 Group operating profit, but with material benefits beginning from the first quarter, 2012.
During the second quarter 2011 the company announced an additional rationalization program in the UK operations in order to fully focus on our speciality strategy. This program was announced already in connection with the company's first quarter report in 2011.
The rationalization implies a further move away from larger volume low margin commodity products to more complex, lower volume speciality products at higher margins. The nonrecurring costs related to this program have been offset by the additional insurance compensation received as announced in the first quarter report 2011.
The ongoing productivity improvements in the Scandinavian units continue in line with plan.
As earlier predicted and communicated cash flow turned negative during the second quarter and the first six months as a consequence of significantly increased raw material prices during the last nine months. We have now most likely seen the major effect of the negative cash flow impact of these raw material price increases, subject to future development of raw material world market prices.
We continue to see positive effects of the AAK Acceleration program, both in terms of organic growth in speciality products, acquisitive growth and productivity. Speciality volumes increased organically, especially in Infant Nutrition, Dairy Industry and Chocolate & Confectionery Fats.
The acquisition of Golden Foods/Golden Brands significantly strengthens our ability to supply combined existing and new customers with a broader portfolio of speciality oils and fats solutions in the US.
We are now going into the third quarter and we remain prudently optimistic for the quarter and for the execution of AAK Acceleration.
Arne Frank CEO and President
* Starting with the first quarter of 2011 the Group´s operations in crushing will be reported as part of business area Technical Products & Feed. The crushing operation has previously been reported within the business area Food Ingredients. For further information, see page 17.
Net sales increased by SEK 313 million mainly due to increased raw material prices and a better product mix, partly offset by a negative currency translation impact of SEK 361 million.
Specialty volumes continued to increase in all business areas in line with our strategy. Commodity volumes for Food Ingredients and Technical Products & Feed declined during the second quarter.
Excluding translation effects, gross contribution improved by SEK 47 million, the negative currency translation impact was SEK 68 million.
After including currency translation effects, gross contribution decreased by SEK 21 million.
Operating profit for the second quarter 2011 reached SEK 196 million (164), an improvement of 20 percent. At fixed exchange rates, operating profit improved by 32 percent.
Operating profit per kilo increased from SEK 0.46 to SEK 0.60 or by 30 percent due to a higher portion of value added products. Speciality volumes increased; whilst low margin commodity volumes decreased.
Group investments in fixed assets totalled SEK 95 million (100), mainly comprising regular maintenance investments.
As anticipated, cash flow from operating activities was negative SEK 41 million (negative 5), as a result of the significant raw material price increases during the last nine months.
We have most likely seen the major negative cash flow impact of the raw material prices during the second half of 2010 ( six-nine months timing delay because of contracts). Raw material prices have decreased during the first six months of 2011, which will positively affect cash flow the first half of 2012.
Cash flow, after net investments of SEK 95 million (100), was negative SEK 136 million (negative 105).
The equity/assets ratio amounted to 33 percent (34 percent as of 31 December 2010). During the second quarter we have paid SEK 184 million in dividend.
Net debt as of 30 June 2011 amounted to SEK 3,436 million (SEK 2,634 million on 31 December 2010). As of 30 June, the Group had total credit facilities of SEK 6,604 million.
Long term refinancing of SEK 4,200 million was finalized in January 2011 and comprises part of the total committed facilities of SEK 6,000 million for five years or more.
The average number of employees in the Group as at 30 June 2011 was 1,987 (2,101 on 31 December 2010), a reduction of 114 employees compared to year-end and 137 employees compared to the corresponding quarter last year. The net change consists of a reduction at our sites in Scandinavia, partly offset by increases in focused growth markets.
The Parent Company is a holding company for the AAK Group. Its functions are primarily concerned with joint Group activities related to development and administration.
0 100 200 300 400 500 600 700 800 900 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Rolling 12 months, SEK million Quarter Rolling 12 months 6,0% 7,0% Return on Net Operating Assets -Rolling 12 months
1000
Quarter Rolling 12 months
NET DEBT/EBITDA
Q1 07Q2 07Q3 07Q4 07Q1 08Q2 08Q3 08Q4 08Q1 09Q2 09Q3 09Q4 09Q1 10Q2 10Q3 10Q4 10Q1 11Q2 11
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11
| AAK Group | Food Ingredients | Chocolate and Confectionery Fats |
Technical Products & Feed |
|---|---|---|---|
| - 8 percent | - 13 percent | + 7 percent | - 7 percent |
| 358,000 MT to 329,000 MT | 218,000 MT to 189,000 MT | 69,000 MT to 74,000 MT | 71,000 MT to 66,000 MT |
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11
| AAK Group | Food Ingredients | Chocolate and Confectionery Fats |
Technical Products & Feed |
|---|---|---|---|
| + 30 percent | + 37 percent | + 14 percent | + 8 percent |
| 0.46 SEK to 0.60 SEK | 0.46 SEK to 0.63 SEK | 0.83 SEK to 0.95 SEK | 0.39 SEK to 0.42 SEK |
Net sales for the business area increased by SEK 139 million due to increased raw material prices and a better product mix, partly offset by negative currency translation impact of SEK 217 million.
Volumes for the business area declined in the second quarter by 13 percent, mainly due to structural changes in the UK and generally lower commodity volumes.
Gross contribution declined to 412 SEK million (443*), mainly due to negative currency translation effects of SEK 37 million.
Operating profit amounted to SEK 120 million (101*), an increase of 19 percent. The
result includes negative currency translation effects of SEK 11 million. At fixed exchange rates, operating profit was up 30 percent compared to last year.
Margins continued to improve.
The "AAK Acceleration" programme addresses significant growth opportunities in our speciality products such as Infant Nutrition (Baby Food), Bakery, Dairy Industry and Food Service.
Subsequent to the end of the second quarter 2011 the company acquired Golden Foods/Golden Brands in the US, which will be an integral part of the Food Ingredients business. This acquisition will have only limited impact on the 2011 operating profit, but it will have material benefits beginning from the first quarter, 2012.
* Starting with the first quarter of 2011 the Group´s operations in crushing will be reported as part of business area Technical Products & Feed. The crushing operation has previously been reported within the business area Food Ingredients. For further information, see page 17.
** All figures are excluding non recurring items.
| SEK Million | Q2 | Q2 | Q1-2 | Q1-2 | Full Year | Rolling12 | ||
|---|---|---|---|---|---|---|---|---|
| 2011 | 2010 | % | 2011 | 2010* | % | 2010* | months* | |
| Net Sales | 2,345 | 2,206 | +6 | 4,596 | 4,224 | +9 | 8,667 | 9,039 |
| Gross Contribution | 412 | 443 | -7 | 803 | 856 | -6 | 1,826 | 1,774 |
| Operating profit | 120 | 101 | +19 | 224 | 198 | +13 | 454 | 480 |
| Operating profit per kilo | 0.63 | 0.46 | +37 | 0.58 | 0.46 | +26 | 0.53 | 0.59 |
| Volumes ('000 tonnes) | 189 | 218 | -13 | 383 | 430 | -11 | 861 | 814 |
Net sales for the business area improved by SEK 125 million, or by 12 percent, due to volume growth, better product mix and raw material price increases, partly offset by negative translation effects of SEK 144 million.
Excluding translation effects gross contribution increased by SEK 40 million.
During the second quarter the business area experienced negative translation effects of SEK 31 million. After including these, gross contribution increased by SEK 9 million.
The operating result reached SEK 70 million (57), an increase of 23 percent. This result included a negative
translation impact of SEK 10 million.
At fixed exchange rates, operating profit was up 40 percent compared to last year.
Compared to last year, volume increased by 7 percent and operating profit per kg improved from SEK 0.83 to SEK 0.95. Prices for CBE continued to be stable during the second quarter.
The general market conditions were stable.
The second quarter is seasonally the weakest quarter in the Chocolate & Confectionery Fats business area. There was continued strong demand in the Americas (North and South) and moderate demand in Europe.
Customers in Russia continue to be mainly focused on standard and economy brands in chocolate and confectionery while demand for premium products is still relatively low.
This is due to disposable income growth being limited and employment levels remaining unstable. (Source: Euromonitor)
* All figures are excluding non-recurring items
| SEK Million | Q2 | Q2 | Q1-2 | Q1-2 | Full Year | Rolling12 | ||
|---|---|---|---|---|---|---|---|---|
| 2011 | 2010 | % | 2011 | 2010* | % | 2010* | months* | |
| Net Sales | 1,146 | 1,021 | +12 | 2,303 | 2,124 | +8 | 4,474 | 4,653 |
| Gross Contribution | 320 | 310 | +3 | 646 | 643 | +0 | 1,394 | 1,397 |
| Operating profit | 70 | 57 | +23 | 151 | 133 | +14 | 341 | 359 |
| Operating profit per kilo | 0.95 | 0.83 | +14 | 0.99 | 0.92 | +8 | 1.14 | 1.18 |
| Volumes ('000 tonnes) | 74 | 69 | +7 | 152 | 145 | +5 | 298 | 305 |
Net sales for the business area improved by SEK 49 million, or 13 percent, mainly due to increased raw material prices and a better product mix.
Volumes in the second quarter 2011 decreased by 7 percent compared to the corresponding quarter last year. During the second quarter there was a planned, and slightly longer than normal, maintenance stop which resulted in reduced low
commodity volumes, mainly affecting the feed product segments.
Gross contribution was unchanged in the second quarter 2011.
Operating profit was SEK 28 million (28*), unchanged compared to the corresponding quarter last year. The improvement in operating profit per kilo was mainly due to reduced low margin commodity volumes.
The biolubricant business continued to enjoy signs of market recovery. However, crushing margin seems to be under pressure in Europe.
* Starting with the first quarter of 2011 the Group´s operations in crushing will be reported as part of business area Technical Products & Feed. The crushing operation has previously been reported within the business area Food Ingredients. For further information, see page 17.
| SEK Million | Q2 | Q2 | Q1-2 | Q1-2 | Full year | Rolling 12 | ||
|---|---|---|---|---|---|---|---|---|
| 2011 | 2010* | % | 2011 | 2010* | % | 2010* | months* | |
| Net Sales | 416 | 367 | +13 | 851 | 756 | +13 | 1,667 | 1,762 |
| Gross contribution | 99 | 99 | +0 | 213 | 193 | +10 | 405 | 425 |
| Operating profit | 28 | 28 | +0 | 67 | 53 | +26 | 118 | 132 |
| Operating profit per kilo | 0.42 | 0.39 | +8 | 0.49 | 0.38 | +29 | 0.42 | 0.47 |
| Volumes ('000 tonnes) | 66 | 71 | -7 | 138 | 139 | -1 | 282 | 281 |
Net sales increased by SEK 646 million due to increased raw material prices and better product mix, partly offset by a negative currency translation impact of SEK 640 million.
Commodity volumes for Food Ingredients continued to decline in the second quarter, but speciality volume increased in Food Ingredients, Chocolate & Confectionery Fats and Technical Products & Feed.
There are no major changes in the general market conditions for speciality products compared to last year.
Excluding currency translation effects, gross contribution improved by SEK 92 million, while negative currency translation impact was SEK 122 million. After including currency translation effects, gross contribution decreased by SEK 30 million.
Operating profit, excluding nonrecurring items of SEK 3 million, reached SEK 400 million (342), an improvement of 17 percent. At fixed exchange rates, operating profit amounted to SEK 432 million (342), an improvement of 26 percent.
Operating profit per kilo increased from SEK 0.48 to SEK 0.59 or by 23 percent due to a higher share of value added products. Volumes increased in the case of speciality products whilst low margin commodity volumes decreased.
Group investments in fixed assets totalled SEK 163 million (179), mainly comprising regular maintenance investments.
As anticipated, cash flow from operating activities was negative SEK 399 million (positive 310), as a result of the significant raw material price increases during the last six to nine months.
Cash flow, after net investments of SEK 163 million (179), was negative SEK 562 million (positive 131). Further, during the second quarter we paid a dividend of SEK 184 million.
No significant changes have taken place in relations or transactions with related parties since 2010.
As announced in the first quarter report 2011, the company did during the second quarter finalize the insurance case related to business interruption in 2008 and 2009.
The net impact of this settlement is basically offset by UK restructuring costs. The restructuring cost included some elements of non cash flow nature.
All business operations involve risk – a controlled approach to risk taking is a prerequisite in maintaining good profitability. Risk may be dependent upon events in the outside world and may affect a specific sector, market or country, and the risk may also be purely companyspecific.
At AAK, effective risk management is a continuing process carried out within the framework of operational management and forms a natural part of the day-to-day monitoring of operations.
The AAK Group is exposed to the fierce competition that characterises the industry, as well as fluctuations in raw material prices affecting working capital.
The operations of the AAK Group involve exposure to significant financial risks, particularly currency risks and raw material price risks.
The raw materials used in the operation are agricultural products, and availability may therefore vary due to climatic and other external factors.
This interim report is prepared in accordance with the Swedish Annual Accounts Act and IAS 34, Interim Financial Reporting. For information regarding the accounting policies applied, see the 2010 Annual Report. The accounting policies are unchanged, compared with those applied in 2010.
As from 1 October 2010, AAK has started to use full hedge accounting based on fair value hedging in accordance with IAS 39. Therefore the company does not report any IAS 39 impact commencing the first quarter 2011.
For definitions see the 2010 Annual Report.
On July 1st the company acquired Golden Food/Golden Brands in the US. For further information see page 3.
The Parent Company's invoiced sales during second quarter 2011 were SEK 21 million (22).
The result for the Parent Company after financial items amounted to negative SEK 21 million (0).
Interest-bearing liabilities minus cash and cash equivalents and interest-bearing assets totalled negative SEK 26 million (positive 160 as at 31 December 2010). Investments in intangible and tangible assets amounted to SEK 0 million (0).
The Parent Company's balance sheet and income statement are shown on pages 18-19.
AarhusKarlshamn AB (publ) is the Parent Company of the AAK Group. The Company has prepared its financial reports in accordance with the Annual Accounts Act and RFR 2 Reporting for legal entities.
No major changes since yearend.
The Board of Directors and the CEO declare that the interim report gives a full and fair view of the operation, position and performance of the Company and the Group, and describes the significant and uncertainty factors faced by the Company and the Companies which are members of the Group.
Malmö, July 20, 2011
Melker Schörling Carl Bek-Nielsen Martin Bek-Nielsen Mikael Ekdahl Chairman of the Board Vice Chairman Board member Board member
Arne Frank Annika Westerlund Leif Håkansson Chief Executive Officer Trade union Trade union and President representative representative
John Goodwin Märit Beckeman Harald Sauthoff Ulrik Svensson Board member Board member Board member Board member
This report has not been reviewed by the company's auditors.
The information is that which AarhusKarlshamn AB (publ) is obliged to publish under the provisions of the Stock Exchange and Clearing Operations Act and/or the Trading in Financial Instruments Act. The information was released to the media for publication on July 20, 2011 at 11 am CET.
| Q2 | Q2 | Q1-2 | Q1-2 | Rolling 12 | Full year | Full year | |
|---|---|---|---|---|---|---|---|
| SEK Million | 2011 | 2010 | 2011 | Q 4 2010 |
months* Q 4 |
Full year 2010* |
Full yea 2010 |
| Net sales | 3,907 | 3,594 | 7,750 | 7,104 | 15,454 | 14,808 | 14,808 |
| Other operating income | 61 | 6 | 73 | 12 | 85 | 27 | 46 |
| Total operating income | 3,968 | 3,600 | 7,823 | 7,116 | 15,539 | 14,835 | 14,854 |
| Raw materials and supplies | -3,110 | -2,836 | -6,179 | -5,511 | -12,023 | -11,310 | -11,271 |
| Other external expenses | -256 | -275 | -495 | -553 | -1,111 | -1,169 | -1,169 |
| Cost for remuneration to employees | -307 | -291 | -563 | -566 | -1,143 | -1,146 | -1,146 |
| Amortisation and impairment losses | -96 | -92 | -180 | -185 | -371 | -376 | -376 |
| Other operating expenses | 0 | -2 | -3 | -4 | -9 | -10 | -10 |
| Total operating income | -3,769 -3,496 | -7,420 | -6,819 | -14,657 | -14,011 | -13,972 | |
| Operating result (EBIT) | 199 | 104 | 403 | 297 | 882 | 824 | 882 |
| Interest income | 2 | 1 | 3 | 4 | 7 | 8 | 8 |
| Interest expense | -21 | -14 | -39 | -29 | -69 | -59 | -59 |
| Other financial items | -11 | -3 | -9 | -5 | -7 | -3 | -3 |
| Total financial net | -30 | -16 | -45 | -30 | -69 | -54 | -54 |
| Result before tax | 169 | 88 | 358 | 267 | 813 | 770 | 828 |
| Income tax | -43 | -27 | -93 | -79 | -191 | -187 | -202 |
| Net result | 126 | 61 | 265 | 188 | 622 | 583 | 626 |
| Attributable to non-controlling | 1 | -1 | 2 | 0 | 4 | 4 | 2 |
| interests | |||||||
| Attributable to the Parent company´s | 125 | 62 | 263 | 188 | 618 | 579 | 624 |
| shareholders |
* Rolling 12 months and full-year 2010 are excluding the IAS 39 effect and non-recurring items.
| Q2 | Q2 | Q1-2 | Q1-2 | Rolling 12 | Full year | |
|---|---|---|---|---|---|---|
| SEK Million | 2011 | 2010 | Q 4 2011 |
Q 4 2010 |
Full year months |
Full yea 2010 |
| Income for the period | 126 | 61 | 265 | 188 | 703 | 626 |
| Exchange differences on translation | 26 | 69 | -40 | 10 | -279 | -229 |
| of foreign operations | ||||||
| Total comprehensive income for | 152 | 130 | 225 | 198 | 424 | 397 |
| the period | ||||||
| Attributable to non-controlling | 1 | 2 | 1 | 2 | 1 | 2 |
| interests |
| SEK Million | 30.6.2011 | 30.6.2010 | 31.12.2010 Q 4 |
|---|---|---|---|
| Assets | |||
| Goodwill | 584 | 621 | 580 |
| Other intangible assets Tangible assets |
95 2,698 |
97 2,926 |
102 2,718 |
| Financial assets | 165 | 170 | 133 |
| Total non-current assets | 3,542 | 3,814 | 3,533 |
| Inventory | 3,027 | 2,185 | 2,299 |
| Current receivables | 2,703 | 2,410 | 2,880 |
| Cash and cash equivalents | 560 | 241 | 540 |
| Total current assets | 6,290 | 4,836 | 5,719 |
| Total assets | 9,832 | 8,650 | 9,252 |
| Equity and liabilities | |||
| Shareholders´equity | 3,214 | 2,949 | 3,164 |
| Non-controlling interests | 20 | 24 | 24 |
| Total equity including non | |||
| controlling interests | 3,234 | 2,973 | 3,188 |
| Total non-current liabilities | 4,272 | 3,652 | 3,486 |
| Accounts payable | 1,167 | 642 | 838 |
| Other current liabilities | 1,159 | 1,383 | 1,740 |
| Total current liabilities | 2,326 | 2,025 | 2,578 |
| Total equity and liabilities | 9,832 | 8,650 | 9,252 |
No changes have arisen in contingent liabilities.
| Total equity | ||||
|---|---|---|---|---|
| Total | Non | incl. non | ||
| equity | controlling | controlling | ||
| SEK Million | capital | interests | Q 4 interests |
|
| Openings equity 1 January 2011 | 3,164 | 24 | 3,188 | |
| Profit for the period | 263 | 2 | 265 | |
| Other comprehensive income | -39 | -1 | -40 | |
| Total comprehensive income | 3,388 | 25 | 3,413 | |
| Redemption non-controlling interest | - | -5 | -5 | |
| Stock options | 10 | - | 10 | |
| Dividend | -184 | - | -184 | |
| Closing equity 30 June 2011 | 3,214 | 20 | 3,234 |
| Total equity | |||
|---|---|---|---|
| Total | Non | incl. non | |
| equity | controlling | controlling | |
| SEK Million | capital | interests | Q 4 interests |
| Openings equity 1 January 2010 | 2,927 | 22 | 2,949 |
| Profit for the period | 188 | 0 | 188 |
| Other comprehensive income | 8 | 2 | 10 |
| Total comprehensive income | 196 | 2 | 198 |
| Dividend | -174 | - | -174 |
| Closing equity 30 June 2010 | 2,949 | 24 | 2,973 |
| Q2 | Q2 | Q1-2 | Q1-2 | Full year | |
|---|---|---|---|---|---|
| SEK Million | 2011 | Q 4 2010 |
2011 Q 4 |
2010 Full year |
2010 Full yea |
| Operating activities | |||||
| Cash flow from operating activities before change in | 231 | 109 | 435 | 330 | 874 |
| working capital | |||||
| Changes in working capital | -272 | -114 | -834 | -20 | -117 |
| Cash flow from operating activities | -41 | -5 | -399 | 310 | 757 |
| Investing activities | |||||
| Cash flow from investing activities | -95 | -100 | -163 | -179 | -331 |
| Cash flow after investing activities | -136 | -105 | -562 | 131 | 426 |
| Financing activities | |||||
| Cash flow from financing activities | 490 | 29 | 595 | -222 | -188 |
| Cash flow for the period | 354 | -76 | 33 | -91 | 238 |
| Cash and cash equivalents at start of period | 207 | 305 | 540 | 322 | 322 |
| Exchange rate difference for cash equivalents | 0 | 12 | -12 | 10 | -20 |
| Cash and cash equivalents at end of period | 561 | 241 | 561 | 241 | 540 |
| Q2 | Q2 | Q1-2 | Q1-2 | Full year | |
|---|---|---|---|---|---|
| SEK Million | 2011 | 2010 | Q 4 2011 |
Q 4 2010 |
Full year 2010 Full yea |
| Number of shares, thousand | 40,898 | 40,898 | 40,898 | 40,898 | 40,898 |
| Earnings per share, SEK* | 3.04 | 2.65 | 6.42 | 5.44 | 14.15 |
| Earnings per share, SEK** | 3.04 | 1.50 | 6.42 | 4.60 | 15.26 |
| Equity per share, SEK | 78.59 | 72.11 | 78.59 | 72.11 | 77.38 |
| Market value on closing date | 183.50 | 145.00 | 183.50 | 145.00 | 188.50 |
* The calculation of earnings per share is based on weighted average number of outstanding shares excluding the IAS 39 effect (year 2010) and non-recurring items.
** The calculation of earnings per share is based on weighted average number of outstanding shares.
No dilution from outstanding stock options during the second quarter 2011.
| 2010 | 2011 | ||||||
|---|---|---|---|---|---|---|---|
| Full | |||||||
| SEK Million | Q1 | Q2 | Q3 | Q4 | year Q 4 |
Q1 Q 4 |
Q2 Full year |
| Food Ingredients | 413 | 443 | 448 | 522 | 1,826 | 391 | 412 |
| Chocolate & Confectionery Fats | 333 | 310 | 379 | 372 | 1,394 | 326 | 320 |
| Technical Products & Feed | 94 | 99 | 100 | 112 | 405 | 114 | 99 |
| Total AAK Group | 840 | 852 | 927 | 1,006 | 3,625 | 831 | 831 |
| 2010 | 2011 | ||||||
|---|---|---|---|---|---|---|---|
| Full | |||||||
| SEK Million | Q1 | Q2 | Q3 | Q4 | year Q 4 |
Q1 Q 4 |
Q2 Full year |
| Food Ingredients | 97 | 101 | 124 | 132 | 454 | 104 | 120 |
| Chocolate & Confectionery Fats | 76 | 57 | 102 | 106 | 341 | 81 | 70 |
| Technical Products & Feed | 25 | 28 | 29 | 36 | 118 | 39 | 28 |
| Group Functions | -20 | -22 | -24 | -23 | -89 | -20 | -22 |
| Total AAK Group | 178 | 164 | 231 | 251 | 824 | 204 | 196 |
| IAS 39 effect | 15 | -60 | -56 | 140 | 39 | - | - |
| Insurance compensation | - | - | - | 19 | 19 | - | 48 |
| Non-recurring items | - | - | - | - | - | - | -45 |
| Total legal operating profit | 193 | 104 | 175 | 410 | 882 | 204 | 199 |
| AAK Group | |||||||
| Financial net | -14 | -16 | -10 | -14 | -54 | -15 | -30 |
| Result before tax | 179 | 88 | 165 | 396 | 828 | 189 | 169 |
| SEK Million | Excl non recurring |
Non recurring Q 4 |
Incl non recurring Q 4 |
Full year |
|---|---|---|---|---|
| items | items | items | ||
| Food Ingredients | 120 | -45 | 75 | |
| Chocolate Confectionery Fats | 70 | +56 | 126 | |
| Technical Products & Feed | 28 | 0 | 28 | |
| Group Functions | -22 | -8 | -30 | |
| Total AAK Group | 196 | +3 | 199 |
Starting with the first quarter of 2011, the Group´s operations in crushing will be reported as part of the business area Technical Products & Feed. The crushing operation has previously been reported within the business area Food Ingredients.
Since 1st January 2011 the crusher has been operated by product area Feed, which is within the business area Technical Products & Feed. Below are the sales, gross contribution and operating profit for the respective quarters in 2010 according to the new
reporting structure. Earlier reported volumes are unchanged after this change in reporting for AAK business areas as reported volumes include only processed products and not sale of crude oil.
| Full | ||||||
|---|---|---|---|---|---|---|
| SEK million | 2010 | Q1 | Q2 | Q3 | Q4 | Year |
| Food Ingredients | New | 2,018 | 2,206 | 2,154 | 2,289 | 8,667 |
| Old | 2,062 | 2,241 | 2,233 | 2,391 | 8,927 | |
| Technical Products & Feed | New | 389 | 367 | 416 | 495 | 1,667 |
| Old | 345 | 332 | 337 | 393 | 1,407 |
| Full | ||||||
|---|---|---|---|---|---|---|
| SEK million | 2010 | Q1 | Q2 | Q3 | Q4 | Year |
| Food Ingredients | New | 413 | 443 | 448 | 522 | 1,826 |
| Old | 442 | 476 | 480 | 554 | 1,952 | |
| Technical Products & Feed | New | 94 | 99 | 100 | 112 | 405 |
| Old | 65 | 66 | 68 | 80 | 279 |
| Full | ||||||
|---|---|---|---|---|---|---|
| SEK million | 2010 | Q1 | Q2 | Q3 | Q4 | Year |
| Food Ingredients | New | 97 | 101 | 124 | 132 | 454 |
| Old | 101 | 107 | 130 | 137 | 475 | |
| Technical Products & Feed | New | 25 | 28 | 29 | 36 | 118 |
| Old | 21 | 22 | 23 | 31 | 97 |
| Q1-2 | Q1-2 | Full year | |
|---|---|---|---|
| SEK Million | 2011 | 2010 | Q 4 2010 |
| Net sales | 21 | 22 | 42 |
| Other operating income | 1 | 0 | 2 |
| Total operating income | 22 | 22 | 44 |
| Other external expenses | -26 | -20 | -47 |
| Cost for remuneration to employees | -19 | -23 | -44 |
| Amortisation and impairment losses | -1 | 0 | -1 |
| Other operating expenses | 0 | 0 | 0 |
| Total operating expenses | -46 | -43 | -92 |
| Operating result (EBIT) | -24 | -21 | -48 |
| Interest income | 82 | 82 | 164 |
| Interest expense | -79 | -61 | -140 |
| Other financial items | - | - | - |
| Total financial net | 3 | 21 | 24 |
| Result before tax | -21 | 0 | -24 |
| Income tax | -1 | 2 | 8 |
| Net result | -22 | 2 | -16 |
| Q1-2 | Q1-2 | Full year | |
|---|---|---|---|
| SEK Million | 2011 | 2010 | Q 4 2010 |
| Net result for the period | -22 | 2 | -16 |
| Other comprehensive income | - | - | - |
| Total comprehensive income for | -22 | 2 | -16 |
| the period |
| SEK Million | 30.6.2011 | 30.6.2010 | 31.12.2010 Q 4 |
|---|---|---|---|
| Assets | |||
| Other intangible assets | 1 | 1 | 1 |
| Tangible assets | 4 | 4 | 4 |
| Financial assets | 7,670 | 7,689 | 7,667 |
| Total non-current assets | 7,675 | 7,694 | 7,672 |
| Current receivables | 105 | 90 | 54 |
| Cash and cash equivalents | 0 | 0 | 0 |
| Total current assets | 105 | 90 | 54 |
| Total assets | 7,780 | 7,784 | 7,726 |
| Equity and liabilities | |||
| Shareholders' equity | 3,968 | 4,142 | 4,174 |
| Total equity | 3,968 | 4,142 | 4,174 |
| Total non-current liabilities | 3,692 | 3,540 | 3,402 |
| Accounts payable | 9 | 3 | 11 |
| Other current liabilities | 111 | 99 | 139 |
| Total current liabilities | 120 | 102 | 150 |
| Total equity and liabilities | 7,780 | 7,784 | 7,726 |
The interim report for the third quarter for 2011 will be published on 7 November, 2011.
The annual and quarterly reports are also published on www.aak.com
Arne Frank, President and CEO Phone: + 46 40 627 83 00
Anders Byström, Chief Financial Officer Phone: + 46 40 627 83 00
Fredrik Nilsson, Head of Investor Relations Phone: + 46 40 627 83 34 Mobile: + 46 708 95 22 21 E-Mail: [email protected]
AarhusKarlshamn AB (publ) Jungmansgatan 12, 211 19 Malmö, Sweden Phone: + 46 40 627 83 00, Reg. No. 556669-2850, www.aak.com
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