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AAK
Earnings Release • Feb 5, 2025
2874_10-k_2025-02-05_b75ff50a-efdf-4f5b-94d3-a0613544fdff.pdf
Earnings Release
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Fourth quarter and year-end report 2024
Interim report
2.16 TR just journals IS BS 2409
Financial highlights
Q4 2024
- Volumes decreased by 1 percent to 541,000 MT (548,000).
- Operating profit increased by 11 percent, reaching SEK 1,268 million (1,141), including a negative currency translation effect of SEK 37 million. At fixed foreign exchange rates, operating profit increased by 14 percent.
Q1–Q4 2024
•
- Volumes increased by 2 percent to 2,173,000 MT (2,123,000).
- Operating profit increased by 19 percent, reaching SEK 4,896 million (4,116), including a negative currency translation effect of SEK 186 million. At fixed foreign exchange rates, operating profit increased by 23 percent.
- Profit for the period totaled SEK 3,542 million (2,954).
- Profit for the period totaled SEK 928 million (870).
- Earnings per share equaled SEK 3.57 (3.34).
- Cash flow from operating activities amounted to SEK 118 million (1,353).
- Return on Capital Employed (ROCE), R12M, was 22.4 percent (19.1 percent on December 31, 2023).
- Earnings per share equaled SEK 13.62 (11.35).
- Cash flow from operating activities amounted to SEK 2,352 million (5,314).
- Return on Capital Employed (ROCE), R12M, was 22.4 percent (19.1 percent on December 31, 2023).
- The Board of Directors proposes that a dividend of SEK 5.00 (3.70) per share be paid for the financial year 2024.
| Q4 2024 |
Q4 2023 |
Δ % | Q1-Q4 2024 |
Q1-Q4 2023 |
Δ % | |
|---|---|---|---|---|---|---|
| Volumes, '000 MT | 541 | 548 | -1 | 2,173 | 2,123 | +2 |
| Operating profit, SEK million | 1,268 | 1,141 | +11 | 4,896 | 4,116 | +19 |
| Operating profit per kilo, SEK | 2.34 | 2.08 | +13 | 2.25 | 1.94 | +16 |
| Profit for the period, SEK million | 928 | 870 | +7 | 3,542 | 2,954 | +20 |
| Earnings per share, SEK | 3.57 | 3.34 | +7 | 13.62 | 11.35 | +20 |
| Cash flow from operating activities, SEK million | 118 | 1,353 | - | 2,352 | 5,314 | - |
| Return on Capital Employed (R12M), percent | 22.4 | 19.1 | +17 | 22.4 | 19.1 | +17 |
A solid finish to a strong year
As we conclude 2024 and enter 2025, I want to take this opportunity to thank our employees for their dedication to AAK and for Making Better Happen™. Your commitment to creating value for our customers and building an aligned organization within our decentralized structure remains the driver of our success.
I also extend my gratitude to our customers and partners for your trust and collaboration. By working together, we drive innovation to deliver sustainable, nutritious, and affordable foods, along with other solutions. We look forward to accelerating this journey in the years to come.
A year of progress
Reflecting on 2024, we made strong progress and exceeded our financial target of growing operating profit by around 10 percent on average over time. We also achieved our longterm aspiration of doubling operating profit per kilo ahead of schedule—a milestone originally set for 2030.
These achievements reflect the strength of our organizational alignment, focus on operational efficiency and collective commitment to our strategic priorities.
Business performance
In the fourth quarter, operating profit grew 11 percent compared to the corresponding quarter last year. The growth was driven by strong performance across all three business areas. At fixed foreign exchange rates, operating profit increased by 14 percent.
Volumes declined by 1 percent in the fourth quarter compared to the same period last year. The decline was primarily driven by Food Ingredients, with lower sales of nonspecialty oils and a decrease in Dairy. Chocolate & Confectionery Fats volumes grew but were impacted by softened demand in the chocolate consumer market.
Profitability remained strong, with operating profit per kilo reaching SEK 2.34 in the quarter. This marked an increase of 13 percent, or 16 percent at fixed currencies, compared to the fourth quarter of 2023. The improvement was partly driven by continued internal optimization, including productivity and procurement enhancements in our oil refining plants, and partly by better portfolio & price management, with continued higher sales of speciality solutions. Fourth-quarter profitability was further supported by favorable market conditions for cocoa butter alternatives.
The operational cash flow amounted to SEK 118 million, impacted by seasonal sourcing and rising costs of raw materials, as well as the previously communicated EUDRrelated inventory buildup.
Rasing our aspiration
Following the strong performance in recent years, we have successfully reached one of the three pillars of our 2030 aspiration ahead of schedule. Considering this achievement and our belief that there are opportunities for further improvement, we have raised our profitability aspiration to SEK 3+ per kilo. Additionally, we maintain our aspiration to grow volumes faster than the underlying market while reinforcing our recognition for delivering a positive impact.
Looking beyond 2030, we are investing to further professionalize our innovation efforts, materialize existing opportunities and discover new ones, driving sustainable growth and further expanding our business.
Concluding remarks
In addition to strong financial performance, we continued to deliver on our sustainability commitments in 2024. One example of our commitment to climate action was the installation of two bio-boilers at our Aarhus site in Denmark. When operating at full capacity, these boilers reduce CO2 emissions by 50,000 tons annually, equivalent to a 90 percent reduction in Scope 1 and 2 emissions for the site and a more than 10 percent decrease across the group's operations.
Building on these achievements, we approach 2025 with a focus on continued progress. We are prudently optimistic about the year ahead and remain dedicated to Making Better Happen™.
Johan Westman, President and CEO
AAK Group, Q4 2024
Volumes
Volumes totaled 541,000 MT (548,000), a decrease of 1 percent compared to last year.
Net sales
Sales reached SEK 11,730 million (10,835), an increase of 8 percent. The increase was mainly driven by high value added specialty oils and favorable market conditions within Chocolate & Confectionery Fats, partly offset by a negative currency translation effect of SEK 182 million.
Operating profit
Operating profit totaled SEK 1,268 million (1,141), corresponding to an increase of 11 percent compared to the same quarter in 2023. The earnings growth was driven by strong operating profit in all three business areas. Currency translation had a negative effect of SEK 37 million, of which SEK 36 million was related to Food Ingredients and SEK 1 million to Chocolate & Confectionery Fats. Operating profit at fixed foreign exchange rates increased by 14 percent.
Operating profit per kilo totaled SEK 2.34 (2.08), an increase of 13 percent. Currency translation had a negative effect of SEK 0.07 per kilo. At fixed foreign exchange rates, operating profit per kilo increased by 16 percent. AAK achieved this growth mainly as a result of our global optimization programs, including production process optimization, procurement coordination, and portfolio & price management. Fourthquarter profitability was also supported by continued favorable market conditions in Chocolate & Confectionary Fats.
Net financial costs and tax costs
Net financial costs totaled SEK 64 million (62). The financial costs increased due to reporting in hyperinflationary economies (IAS 29), partly offset by lower interest rates and reduced debt level. Reported tax costs corresponded to an average tax rate of 23 percent (19).
Earnings per share
Earnings per share equaled SEK 3.57 (3.34).
Cash flow and investments
Operating cash flow, including changes in working capital, amounted to SEK 118 million (1,353). Cash flow from working capital amounted to negative SEK 966 million (positive 157), mainly due to increased working capital, primarily driven by negative cash flows from inventory. The negative cash flow from inventory was a result of seasonal sourcing of raw materials, rising raw material costs, and as previously communicated, an inventory buildup linked to the European Union's Deforestation Regulation.
Cash flow from investment activities amounted to SEK 283 million (negative 325). This includes a positive cash flow effect of SEK 646 million from the divestment of the North American Foodservice site, which was finalized as scheduled on December 31, 2024. The divestment has no material effect on AAK's profit and loss statement.
In addition to the positive cash flow from the divestment, there was a negative cash flow effect of SEK 363 million (negative 410) due to maintenance investments, productivity improvements, and capacity increases.
Return on Capital Employed (ROCE)
Calculated on a rolling 12-month basis, Return on Capital Employed (ROCE) was 22.4 percent (19.1 on December 31, 2023).
Financial position
The equity-to-asset ratio was 59 percent (56 percent on December 31, 2023). Net debt on December 31, 2024, totaled SEK 1,696 million (SEK 2,425 million on December 31, 2023). Net debt/EBITDA totaled 0.29 (0.49 as of December 31, 2023).
On December 31, 2024, the Group had total credit facilities of SEK 8,388 million (8,605 as of December 31, 2023), of which there were SEK 6,765 million (7,085 as of December 31, 2023) in committed credit facilities. Unused committed credit facilities on December 31, 2024, totaled SEK 4,929 million (5,559 as of December 31, 2023). Non-committed credit facilities totaled SEK 1,623 million (1,520 as of December 31, 2023), SEK 1,428 million (1,352 as of December 31, 2023) of which were unused.
Selected events
Opening of biotechnology innovation center
In December, we officially opened our biotechnology innovation center in Lund, Sweden. This facility focuses on advancements in biotechnology, particularly in lipids for food, feed, cosmetics, and related fields.
Located in Lund's Ideon Science Park, the center benefits from being part of an innovation hub that includes start-ups and established companies conducting research in areas such as biotech and nutrition. Its close connection to Lund University fosters collaboration and scientific discovery.
AAK wins Sustainability Innovation Award at FIE
AAK's participation in Food Ingredients Europe (FIE) 2024 was a resounding success, highlighted by winning the Sustainability Innovation Award for empowering women in West Africa through the Kolo Nafaso program and for reducing emissions across the shea supply chain. The award recognizes AAK's commitment to sustainable practices in the food industry along the entire supply chain.
Raising our 2030 aspiration - Capital Markets Day in Karlshamn
On November 26, we hosted a Capital Markets Day in Karlshamn, Sweden, where we announced an ambitious update to our 2030 Aspiration.
We remain committed to delivering and developing, with an aspiration to achieve profitability of SEK 3+ per kilo by 2030 and grow volumes faster than the market. Looking beyond 2030, we aim to discover new opportunities for sustainable growth and business expansion.
The CMD materials, along with a recording of the main presentation, are available on www.aak.com.
Divestment of North American Foodservice site completed
On October 23, AAK announced an agreement to divest its Foodservice facility located in Hillside, NJ, USA. The transaction was finalized as planned on December 31, resulting in a one-time positive cash flow impact of SEK 646 million in the fourth quarter of 2024. The divestment has no material effect on the company's profit and loss statement.
In 2024, the Hillside facility represented about 5 percent of AAK's total volumes and approximately 1 percent of its operating profit. As a result, the divestment will increase the group's operating profit per kilo by approximately 4 percent.
Food Ingredients, Q4 2024
Operating profit +12%
Operating profit per kilo +16%
| Q4 2024 |
Q4 2023 |
Δ % | Q1-Q4 2024 |
Q1-Q4 2023 |
Δ % | |
|---|---|---|---|---|---|---|
| Volumes, '000 MT | 337 | 350 | -4 | 1,375 | 1,364 | +1 |
| Net sales, SEK million | 7,455 | 6,815 | +9 | 28,758 | 29,891 | -4 |
| Operating profit, SEK million | 767 | 685 | +12 | 3,071 | 2,642 | +16 |
| Operating profit per kilo, SEK | 2.28 | 1.96 | +16 | 2.23 | 1.94 | +15 |
Volumes
Volumes decreased by 4 percent compared to the same period in 2023. The decline was primarily driven by lower year-on-year sales of non-specialty oils and a decline in Dairy.
Bakery performed well and grew in the fourth quarter, led by the Americas and supported by solid performance from Asia, the Middle East & Africa. Europe also grew in the quarter, though more modestly compared to the other regions.
The decline in Dairy was largely attributable to weak performance in Asia, the Middle East & Africa, with India being the primary contributor.
Volume in Special Nutrition declined, driven by Asia, the Middle East & Africa as well as Europe. This was primarily due to continued challenges in the Chinese infant nutrition market. The Americas performed well and grew during the quarter.
Volumes in Foodservice declined slightly, primarily driven by the Americas.
Net sales
Net sales reached SEK 7,455 million (6,815), an increase of 9 percent, including a negative currency translation effect of SEK 105 million.
Operating profit
Operating profit increased by 12 percent to SEK 767 million (685), including a negative currency translation effect of SEK 36 million. At fixed foreign exchange rates, operating profit increased by 17 percent.
Operating profit per kilo increased to SEK 2.28 (1.96), corresponding to 16 percent growth, with currencies having a negative effect of SEK 0.11 per kilo. The increase in profitability was broad-based, with improvements across all main segments, led primarily by Bakery. At fixed foreign exchange rates, operating profit per kilo increased by 21 percent.
Chocolate & Confectionery Fats, Q4 2024
Operating profit +8%
Operating profit per kilo +7%
| Q4 2024 |
Q4 2023 |
Δ % | Q1-Q4 2024 |
Q1-Q4 2023 |
Δ % | |
|---|---|---|---|---|---|---|
| Volumes, '000 MT | 124 | 123 | +1 | 512 | 473 | +8 |
| Net sales, SEK million | 3,606 | 3,432 | +5 | 13,961 | 13,694 | +2 |
| Operating profit, SEK million | 520 | 481 | +8 | 1,983 | 1,521 | +30 |
| Operating profit per kilo, SEK | 4.19 | 3.91 | +7 | 3.87 | 3.22 | +20 |
Volumes
Volumes in Chocolate & Confectionery Fats increased by 1 percent year-over-year. The growth was driven by Europe and Asia, the Middle East & Africa, though somewhat offset by weaker performance in the Americas and reduced consumer demand for chocolate.
Net sales
Net sales for the business area reached SEK 3,606 million (3,432), a 5 percent increase, including a negative currency translation effect of SEK 77 million.
Operating profit
Operating profit reached SEK 520 million (481), an increase of 8 percent compared to the same quarter last year. Currency translation had a negative impact of SEK 1 million. At fixed foreign exchange rates, operating profit increased by 8 percent.
The operating profit per kilo was strong, increasing to SEK 4.19 (3.91), corresponding to 7 percent growth. Currency translation had a negative impact of SEK 0.01 per kilo. At fixed foreign exchange rates, operating profit per kilo increased by 7 percent.
The increase in operating profit per kilo was driven by strong performance in Europe and the Americas, supported by continued favorable market conditions.
Chocolate & Confectionery Fats - Operating profit
Chocolate & Confectionery Fats - Operating profit per kilo
Technical Products & Feed, Q4 2024
| Operating |
|---|
| profit |
| +17% |
Operating profit per kilo +9%
| Q4 2024 |
Q4 2023 |
Δ % | Q1-Q4 2024 |
Q1-Q4 2023 |
Δ % | |
|---|---|---|---|---|---|---|
| Volumes, '000 MT | 80 | 75 | +7 | 286 | 286 | +0 |
| Net sales, SEK million | 669 | 588 | +14 | 2.333 | 2,443 | -5 |
| Operating profit, SEK million | 69 | 59 | +17 | 176 | 258 | -32 |
| Operating profit per kilo, SEK | 0.86 | 0.79 | +9 | 0.62 | 0.90 | -31 |
Volumes
Volumes increased by 7 percent compared to the same period in 2023, with growth in both Technical Products and Feed.
Net sales
Net sales for the business area reached SEK 669 million, increasing by 14 percent compared to SEK 588 million during the fourth quarter of last year.
Operating profit
Operating profit totaled SEK 69 million (59), a 17 percent increase compared to last year. The increase was driven by solid performance in both Technical Products and Feed.
As a result, the operating profit per kilo increased to SEK 0.86, resulting in 9 percent growth compared to the fourth quarter of 2023.
Technical Products & Feed - Operating profit
Technical Products & Feed - Operating profit per kilo
AAK Group, 12M 2024
Volumes
Volumes totaled 2,173,000 MT (2,123,000), an increase of 2 percent compared to last year.
Net sales
Sales totaled SEK 45,052 million (46,028), a 2 percent decrease. This decline was primarily due to price adjustments resulting from lower raw material prices, though it was partially offset by higher volumes and a favorable product mix driven by a continued focus on specialty solutions. Additionally, currency translation had a negative impact of SEK 1,107 million.
Operating profit
Operating profit totaled SEK 4,896 million (4,116), an increase of 19 percent compared to the corresponding period in 2023.
The growth in operating profit was driven by strong operating profit per kilo in Food Ingredients and Chocolate & Confectionery Fats.
The currency translation had a negative impact of SEK 186 million, of which SEK 118 million was related to Food Ingredients and SEK 68 million to Chocolate & Confectionery Fats. Operating profit at fixed foreign exchange rates increased by 23 percent.
Operating profit per kilo totaled SEK 2.25 (1.94), an increase of 16 percent. The currency translation impact was negative SEK 0.09. At fixed foreign exchange rates, operating profit per kilo increased by 21 percent. AAK achieved this growth mainly due to our global optimization programs, including production process optimization, procurement coordination, and portfolio & price management, as well as operational leverage from increased volumes. Profitability was also somewhat supported by continued favorable market conditions in Chocolate & Confectionery Fats.
Net financial cost and tax costs
Net financial cost totaled SEK 236 million (292). The financial cost decreased due to reduced debt level and by lower interest rates, partly offset by reporting in hyperinflationary economies (IAS 29). Reported tax costs correspond to an average tax rate of 24 percent (23).
Earnings per share
Earnings per share equaled SEK 13.62 (11.35).
Cash flow and investments
Operating cash flow including changes in working capital amounted to SEK 2,352 million (5,314). Cash flow from working capital amounted to negative SEK 2,813 million (positive 1,573). The negative cash flow impact from changes in working capital was primarily driven by increases in inventory and accounts receivable, while accounts payable had a minor positive effect.
Cash outflow from investment activities amounted to SEK 598 million (1,203), of which SEK 0 million (89) stemmed from acquisitions of operations. Capital expenditure was mostly spent on maintenance investments, productivity improvements, and capacity increases.
Cash flow from the divestment of the North American Foodservice site amounted to SEK 646 million.
Employees
The average number of employees on December 31, 2024, was 3,992 (4,128 as of December 31, 2023). The primary reason for the decrease was the divestment of the Foodservice facility in North America.
General information
Related parties
No significant related party transactions have occurred during the quarter.
Risks and uncertainty factors
AAK's operations are constantly exposed to risks, threats, and external factors. Through a proactive approach to business intelligence, the company aims to anticipate changes in factors affecting operations. Plans and policies are adjusted continuously to counteract potential negative effects. Active risk management, such as hedging raw material prices and currencies, reduces the risks that the company faces.
Efficient risk management is an ongoing process conducted within the framework of business control and is part of the ongoing review and forward-looking assessment of operations.
AAK assumes that long-term risk exposure will not deviate from the inherent exposure associated with AAK's ongoing business operations.
AAK's Board of Directors and Executive Committee have, since the publication of the Annual Report 2023, reviewed the development of significant risks and uncertainties and can confirm that there have been no material changes other than what has been commented on regarding market developments during 2024.
For a more in-depth analysis of risks, please refer to AAK's Annual Report.
Accounting policies in 2024
This interim report is prepared in accordance with IAS 34, Interim Financial Reporting, and applicable rules in the Swedish Annual Accounts Act. The accounting principles correspond to the principles applied in the preparation of the Annual Report 2023.
Alternative Performance Measures (APMs)
AAK presents APMs to reflect underlying business performance and to enhance comparability from period to period. APMs should not be considered as a substitute for measures of performance in accordance with the IFRS.
Definitions of Alternative Performance Measures can be found at www.aak.com under the Investor tab. For a reconciliation of Alternative Performance Measures, see pages 19–20.
Definitions
For definitions, please see our Annual Report.
Annual General Meeting and Annual Report
The Annual General Meeting will be held on May 8, 2025, in Malmö, Sweden. The Annual Report for 2024 will be available at www.aak.com from April 10, 2025.
Nomination Committee
At the Annual General Meeting 2024, Märta Schörling Andreen (Melker Schörling AB), Henrik Didner (Didner & Gerge Fonder), Daniel Kristiansson (Alecta) and Elisabet Jamal Bergström (SEB Investment Management) were elected as members of the Nomination Committee for the period up to the Annual General Meeting 2025. Märta Schörling Andreen was re-elected Chairman of the Nomination Committee.
Proposed dividend
The Board of Directors proposes that a dividend of SEK 5.00 (3.70) per share be paid for the financial year 2024. The proposed record date for the dividend is May 12, 2025. It is expected that the dividend will reach the shareholders after May 15, 2025.
Events after the reporting period
No events to be reported.
The Parent Company and Group Functions
AAK AB (publ.) is the Parent Company of the AAK Group. Its functions are primarily activities related to the development and administration of the Group.
The result for the Parent Company after financial items amounted to SEK 409 million (negative 83). Interestbearing liabilities minus cash and cash equivalents and interest-bearing assets totaled SEK 4,693 million (4,443 as of December 31, 2023). Investments in intangible and tangible assets amounted to SEK 45 million (23).
The Parent Company's balance sheet and income statement are shown on pages 21–22. There are no major changes in the Parent Company's balance sheet since year's end.
The Parent Company has prepared its financial reports in accordance with Chapter 9 of the Swedish Annual Accounts Act, Interim Report and RFR 2 Accounting for legal entities. The accounting principles correspond to the principles applied in the preparation of the Annual Report 2023.
Malmö, February 5, 2025
Johan Westman President and CEO
For further information, please contact:
Carl Ahlgren Head of IR, Communication & Brand Mobile: +46 70 681 07 34 E-mail: [email protected]
AAK AB (publ.) is obliged to make this information public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, under the direction of the contact person set out above, at 8:30 CET on February 5, 2025.
Auditor's review report
AAK AB (publ.) Corp. id. 556669-2850
Introduction
We have reviewed the condensed interim financial information (interim report) of AAK AB (publ.) as of 31 December 2024 and the twelve-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.
Malmö 5 February 2025 KPMG AB
Jonas Nihlberg Authorized Public Accountant
Condensed income statement
| Q4 | Q4 | Q1-Q4 | Q1-Q4 | |
|---|---|---|---|---|
| SEK million Net sales |
2024 11,730 |
2023 10,835 |
2024 45,052 |
2023 46,028 |
| Other operating income | 70 | 62 | 176 | 225 |
| Total operating income | 11,800 | 10,897 | 45,228 | 46,253 |
| Change in inventories of finished goods and work in progress | 64 | 17 | 63 | -64 |
| Raw materials and consumables | -8,198 | -7,462 | -31,343 | -33,421 |
| Goods for resale | -214 | -250 | -776 | -811 |
| Other external expenses | -987 | -970 | -3,681 | -3,577 |
| Cost for remuneration to employees | -945 | -891 | -3,674 | -3,399 |
| Depreciation, amortization and impairment losses | -219 | -194 | -862 | -877 |
| Other operating expenses | -33 | -6 | -59 | 12 |
| Total operating expenses | -10,532 | -9,756 | -40,332 | -42,137 |
| Operating profit (EBIT) | 1,268 | 1,141 | 4,896 | 4,116 |
| Financial income | 40 | 24 | 102 | 83 |
| Financial expense | -104 | -86 | -338 | -375 |
| Total financial net | -64 | -62 | -236 | -292 |
| Profit before tax | 1,204 | 1,079 | 4,660 | 3,824 |
| Income tax | -276 | -209 | -1,118 | -870 |
| Profit for the period | 928 | 870 | 3,542 | 2,954 |
| Attributable to non-controlling interests | 2 | 4 | 6 | 8 |
| Attributable to the Parent Company's shareholders | 926 | 866 | 3,536 | 2,946 |
| Earnings per share before dilution, SEK1) | 3.57 | 3.34 | 13.62 | 11.35 |
| Earnings per share after dilution, SEK2) | 3.55 | 3.33 | 13.57 | 11.35 |
1) Earnings per share are calculated based on a weighted average number of outstanding shares.
2) Earnings per share are calculated based on a weighted average number of outstanding shares after dilution from outstanding subscription warrants.
Comprehensive income
| SEK million | Q4 2024 |
Q4 2023 |
Q1-Q4 2024 |
Q1-Q4 2023 |
|---|---|---|---|---|
| Profit for the period | 928 | 870 | 3,542 | 2,954 |
| Other comprehensive income: Items that will not be reclassified to profit or loss |
||||
| Remeasurements of post-employment benefit obligations | 2 | -28 | -32 | -11 |
| 2 | -28 | -32 | -11 | |
| Items that may subsequently be reclassified to profit or loss | ||||
| Translation differences | 812 | -1,106 | 467 | -146 |
| Fair-value changes in cash flow hedges | -2 | -6 | -13 | -12 |
| Tax related to fair-value changes in cash flow hedges | 1 | 2 | 3 | 3 |
| 811 | -1,110 | 457 | -155 | |
| Total other comprehensive income for the period | 813 | -1,138 | 425 | -166 |
| Total comprehensive income for the period | 1,741 | -268 | 3,967 | 2,788 |
| Attributable to non-controlling interests | 2 | 4 | 6 | 9 |
| Attributable to the Parent Company's shareholders | 1,739 | -272 | 3,961 | 2,779 |
Condensed balance sheet
| SEK million | 31.12.2024 | 31.12.2023 |
|---|---|---|
| Assets Goodwill |
2,333 | 2,712 |
| Other intangible assets | 320 | 290 |
| Property, plant and equipment | 8,078 | 7,493 |
| Right-of-use assets | 516 | 760 |
| Shares in associated companies | 7 | 13 |
| Financial assets | 90 | 79 |
| Deferred tax assets | 400 | 390 |
| Total non-current assets | 11,744 | 11,737 |
| Inventory | 11,872 | 8,656 |
| Accounts receivable | 5,793 | 5,312 |
| Current receivables | 3,066 | 3,343 |
| Cash and cash equivalents | 1,911 | 1,503 |
| Total current assets | 22,642 | 18,814 |
| Total assets | 34,386 | 30,551 |
| Equity and liabilities | ||
| Shareholders' equity | 20,087 | 17,117 |
| Non-controlling interests | 62 | 56 |
| Total equity including non-controlling interests | 20,149 | 17,173 |
| Liabilities to banks and credit institutions | 949 | 1,969 |
| Pension liabilities | 82 | 31 |
| Lease liabilities | 411 | 630 |
| Deferred tax liabilities | 621 | 656 |
| Other non-current liabilities | 470 | 455 |
| Total non-current liabilities | 2,533 | 3,741 |
| Liabilities to banks and credit institutions | 2,071 | 1,715 |
| Lease liabilities | 140 | 171 |
| Accounts payable | 4,121 | 3,804 |
| Other current liabilities | 5,372 | 3,947 |
| Total current liabilities | 11,704 | 9,637 |
| Total equity and liabilities | 34,386 | 30,551 |
Condensed change in equity
2024
| SEK million | Shareholders' equity |
Non-controlling interests |
Total equity incl. non-controlling interests |
|---|---|---|---|
| Opening balance January 1, 2024 | 17,117 | 56 | 17,173 |
| Profit for the period | 3,536 | 6 | 3,542 |
| Other comprehensive income | 425 | 0 | 425 |
| Total comprehensive income | 3,961 | 6 | 3,967 |
| Long-term incentive | -31 | - | -31 |
| Dividend | -960 | - | -960 |
| Closing balance December 31, 2024 | 20,087 | 62 | 20,149 |
| SEK million | Shareholders' equity |
Non-controlling interests |
Total equity incl. non-controlling interests |
|---|---|---|---|
| Opening balance January 1, 2023 | 15,036 | 47 | 15,083 |
| Profit for the period | 2,946 | 8 | 2,954 |
| Other comprehensive income | -167 | 1 | -166 |
| Total comprehensive income | 2,779 | 9 | 2,788 |
| Long-term incentive | 16 | - | 16 |
| Dividend | -714 | - | -714 |
| Closing balance December 31, 2023 | 17,117 | 56 | 17,173 |
Condensed cash flow statement
| SEK million | Q4 2024 |
Q4 2023 |
Q1-Q4 2024 |
Q1-Q4 2023 |
|---|---|---|---|---|
| Operating activities Operating profit |
1,268 | 1,141 | 4,896 | 4,116 |
| Depreciation, amortization and impairment losses | 219 | 194 | 862 | 877 |
| Adjustment for other non-cash items | -50 | 241 | 483 | -65 |
| Interest paid and received | -18 | -59 | -140 | -208 |
| Tax paid | -335 | -321 | -936 | -979 |
| Cash flow before changes in working capital | 1,084 | 1,196 | 5,165 | 3,741 |
| Changes in inventory | -1,441 | -271 | -2,409 | 2,463 |
| Changes in accounts receivable | 195 | 514 | -466 | 1,241 |
| Changes in accounts payable | -46 | 119 | 198 | -1,545 |
| Changes in other working capital items | 326 | -205 | -136 | -586 |
| Changes in working capital | -966 | 157 | -2,813 | 1,573 |
| Cash flow from operating activities | 118 | 1,353 | 2,352 | 5,314 |
| Investing activities | ||||
| Acquisition of intangible assets and property, plant and equipment |
-363 | -410 | -1,245 | -1,245 |
| Acquisition of operations and shares, net of cash acquired | - | - | - | -89 |
| Proceeds from sale of operations and shares | 646 | - | 646 | - |
| Proceeds from sale of property, plant and equipment | 0 | 85 | 1 | 131 |
| Cash flow from investing activities | 283 | -325 | -598 | -1,203 |
| Financing activities | ||||
| Changes in loans | 293 | -988 | -169 | -3,166 |
| Amortization of lease liabilities | -61 | -46 | -197 | -181 |
| Dividend paid | - | - | -960 | -714 |
| Cash flow from financing activities | 232 | -1,034 | -1,326 | -4,061 |
| Cash flow for the period | 633 | -6 | 428 | 50 |
| Cash and cash equivalents at start of period | 1,260 | 1,595 | 1,503 | 1,515 |
| Exchange rate difference for cash equivalents | 18 | -86 | -20 | -62 |
| Cash and cash equivalents at end of period | 1,911 | 1,503 | 1,911 | 1,503 |
Key ratios
| SEK million (unless otherwise stated) | Q4 2024 |
Q4 2023 |
Δ % | Q1-Q4 2024 |
Q1-Q4 2023 |
Δ % |
|---|---|---|---|---|---|---|
| Income statement | ||||||
| Volumes, '000 MT | 541 | 548 | -1 | 2,173 | 2,123 | +2 |
| Operating profit | 1,268 | 1,141 | +11 | 4,896 | 4,116 | +19 |
| Profit for the period | 928 | 870 | +7 | 3,542 | 2,954 | +20 |
| Financial position | ||||||
| Total assets | 34,386 | 30,551 | +13 | 34,386 | 30,551 | +13 |
| Equity | 20,149 | 17,173 | +17 | 20,149 | 17,173 | +17 |
| Net working capital | 11,192 | 8,971 | +25 | 11,192 | 8,971 | +25 |
| Net debt | 1,696 | 2,425 | -30 | 1,696 | 2,425 | -30 |
| Cash flow | ||||||
| Cash flow from operating activities | 118 | 1,353 | - | 2,352 | 5,314 | - |
| Cash flow from investing activities | 283 | -325 | - | -598 | -1,203 | - |
| Share data | ||||||
| Number of shares, thousand | 259,559 | 259,559 | +0 | 259,559 | 259,559 | +0 |
| Earnings per share, SEK1) | 3.57 | 3.34 | +7 | 13.62 | 11.35 | +20 |
| Equity per share, SEK | 77.39 | 65.95 | +17 | 77.39 | 65.95 | +17 |
| Market value on closing date, SEK | 315.60 | 224.80 | +40 | 315.60 | 224.80 | +40 |
| Other key ratios | ||||||
| Volume growth, percent | -1 | -4 | - | +2 | -6 | - |
| Operating profit per kilo, SEK | 2.34 | 2.08 | +13 | 2.25 | 1.94 | +16 |
| Return on Capital Employed (R12 months), percent | 22.4 | 19.1 | +17 | 22.4 | 19.1 | +17 |
| Net debt / EBITDA, multiple | 0.29 | 0.49 | -41 | 0.29 | 0.49 | -41 |
1) Earnings per share are calculated based on a weighted average number of outstanding shares.
Quarterly data by business area
Operating profit
| SEK million | 2023 Q1 |
Q2 | Q3 | Q4 | Full year |
2024 Q1 |
Q2 | Q3 | Q4 | Full year |
|---|---|---|---|---|---|---|---|---|---|---|
| Food Ingredients | 582 | 636 | 739 | 685 | 2,642 | 779 | 755 | 770 | 767 | 3,071 |
| Chocolate & Confectionery Fats | 327 | 275 | 438 | 481 | 1,521 | 505 | 433 | 525 | 520 | 1,983 |
| Technical Products & Feed | 108 | 44 | 47 | 59 | 258 | 53 | 9 | 45 | 69 | 176 |
| Group Functions | -65 | -75 | -81 | -84 | -305 | -83 | -79 | -84 | -88 | -334 |
| Operating profit AAK Group | 952 | 880 | 1,143 | 1,141 | 4,116 | 1,254 | 1,118 | 1,256 | 1,268 | 4,896 |
| Financial net | -77 | -68 | -85 | -62 | -292 | -23 | -48 | -101 | -64 | -236 |
| Profit before tax | 875 | 812 | 1,058 | 1,079 | 3,824 | 1,231 | 1,070 | 1,155 | 1,204 | 4,660 |
Net sales by market
2024
| SEK million | FI Q4 2024 |
CCF Q4 2024 |
TPF Q4 2024 |
Total Q4 2024 |
FI Q1-Q4 2024 |
CCF Q1-Q4 2024 |
TPF Q1-Q4 2024 |
Total Q1-Q4 2024 |
|---|---|---|---|---|---|---|---|---|
| Europe | 2,606 | 1,306 | 663 | 4,575 | 10,078 | 4,985 | 2,318 | 17,381 |
| North and South America | 3,570 | 1,358 | 1 | 4,929 | 14,341 | 5,849 | 2 | 20,192 |
| Asia | 1,195 | 873 | 5 | 2,073 | 4,002 | 2,906 | 13 | 6,921 |
| Other countries | 84 | 69 | 0 | 153 | 337 | 221 | 0 | 558 |
| Net sales | 7,455 | 3,606 | 669 | 11,730 | 28,758 | 13,961 | 2,333 | 45,052 |
| SEK million | FI Q4 2023 |
CCF Q4 2023 |
TPF Q4 2023 |
Total Q4 2023 |
FI Q1-Q4 2023 |
CCF Q1-Q4 2023 |
TPF Q1-Q4 2023 |
Total Q1-Q4 2023 |
|---|---|---|---|---|---|---|---|---|
| Europe | 2,094 | 1,302 | 588 | 3,984 | 10,662 | 4,858 | 2,443 | 17,963 |
| North and South America | 3,621 | 1,431 | 0 | 5,052 | 15,029 | 6,128 | 0 | 21,157 |
| Asia | 979 | 648 | 0 | 1,627 | 3,712 | 2,532 | 0 | 6,244 |
| Other countries | 121 | 51 | 0 | 172 | 488 | 176 | 0 | 664 |
| Net sales | 6,815 | 3,432 | 588 | 10,835 | 29,891 | 13,694 | 2,443 | 46,028 |
Financial instruments
| SEK million | 31.12.2024 | 31.12.2023 | Hierarchy level |
|---|---|---|---|
| Assets at fair value through profit and loss | |||
| Currency derivatives | 300 | 358 | 2 |
| Sales and purchase contracts | 1,034 | 927 | 2 |
| Investment in unlisted shares | 7 | 7 | 3 |
| Investment in unlisted funds | 67 | 55 | 3 |
| Derivatives used in cash flow hedges | |||
| Interest rate swaps | - | 13 | 2 |
| Assets at amortized cost | |||
| Financial non-current assets | 6 | 11 | - |
| Accounts receivable | 5,793 | 5,312 | - |
| Financial current assets | 0 | 97 | - |
| Cash and cash equivalents | 1,911 | 1,503 | - |
| Total financial assets | 9,118 | 8,283 | |
| Liabilities at fair value through profit and loss | |||
| Currency derivatives | 240 | 389 | 2 |
| Sales and purchase contracts | 1,391 | 430 | 2 |
| Liabilities at amortized cost | |||
| Liabilities to banks and credit institutions | 3,020 | 3,684 | - |
| Lease liabilities | 551 | 801 | - |
| Accounts payable | 4,121 | 3,804 | - |
| Other interest-bearing liabilities | 11 | 11 | - |
| Total financial liabilities | 9,334 | 9,119 |
For information on the valuation techniques used by the Group in measuring the fair value of financial instruments, see note 3 in the Annual Report 2023.
Alternative Performance Measures (APMs)
Organic volume growth
| Percent | Q4 2024 |
Q4 2023 |
Q1-Q4 2024 |
Q1-Q4 2023 |
|---|---|---|---|---|
| Food Ingredients | ||||
| Organic volume growth | -4 | -3 | 1 | -5 |
| Acquisitions / divestments | - | - | - | - |
| Volume growth | -4 | -3 | 1 | -5 |
| Chocolate & Confectionery Fats | ||||
| Organic volume growth | 1 | -2 | 8 | -9 |
| Acquisitions / divestments | - | - | - | - |
| Volume growth | 1 | -2 | 8 | -9 |
| Technical Products & Feed | ||||
| Organic volume growth | 7 | -12 | 0 | -6 |
| Acquisitions / divestments | - | - | - | - |
| Volume growth | 7 | -12 | 0 | -6 |
| AAK Group | ||||
| Organic volume growth | -1 | -4 | 2 | -6 |
| Acquisitions / divestments | - | - | - | - |
| Volume growth | -1 | -4 | 2 | -6 |
EBITDA
| SEK million | Q4 2024 |
Q4 2023 |
Q1-Q4 2024 |
Q1-Q4 2023 |
|---|---|---|---|---|
| Operating profit (EBIT) | 1,268 | 1,141 | 4,896 | 4,116 |
| Depreciation, amortization and impairment losses | 219 | 194 | 862 | 877 |
| EBITDA | 1,487 | 1,335 | 5,758 | 4,993 |
Return on Capital Employed (ROCE)
| SEK million | R12M 31.12.2024 |
R12M 31.12.2023 |
|---|---|---|
| Total assets | 32,246 | 32,147 |
| Cash and cash equivalents | -1,523 | -1,500 |
| Financial assets | -291 | -213 |
| Accounts payable | -3,974 | -4,333 |
| Other non-interest-bearing liabilities | -4,609 | -4,566 |
| Capital employed | 21,849 | 21,535 |
| Operating profit, excluding items affecting comparability | 4,896 | 4,116 |
| Return on Capital Employed (ROCE), percent | 22.4 | 19.1 |
Net working capital
| SEK million | 31.12.2024 | 31.12.2023 |
|---|---|---|
| Inventory | 11,872 | 8,656 |
| Accounts receivable | 5,793 | 5,312 |
| Other current receivables, non-interest-bearing | 3,007 | 2,743 |
| Accounts payable | -4,121 | -3,804 |
| Other current liabilities, non-interest-bearing | -5,359 | -3,936 |
| Net working capital | 11,192 | 8,971 |
Net debt
| SEK million | 31.12.2024 | 31.12.2023 |
|---|---|---|
| Non-current interest-bearing receivables | 0 | 0 |
| Current interest-bearing receivables | 57 | 599 |
| Cash and cash equivalents | 1,911 | 1,503 |
| Pension liabilities | -82 | -31 |
| Lease liabilities | -551 | -801 |
| Non-current liabilities to banks and credit institutions | -949 | -1,969 |
| Current liabilities to banks and credit institutions | -2,071 | -1,715 |
| Other interest-bearing liabilities | -11 | -11 |
| Net debt | -1,696 | -2,425 |
Net debt / EBITDA
| SEK million | 31.12.2024 | 31.12.2023 |
|---|---|---|
| Net debt | 1,696 | 2,425 |
| EBITDA (rolling 12 months) | 5,758 | 4,993 |
| Net debt / EBITDA, multiple | 0.29 | 0.49 |
Equity to assets ratio
| 31.12.2024 | 31.12.2023 |
|---|---|
| 20,087 | 17,117 |
| 62 | 56 |
| 20,149 | 17,173 |
| 34,386 | 30,551 |
| 58.6 | 56.2 |
Income statement – Parent Company
| SEK million | Q4 2024 |
Q4 2023 |
Q1-Q4 2024 |
Q1-Q4 2023 |
|---|---|---|---|---|
| Net sales | 60 | 168 | 420 | 413 |
| Total operating income | 60 | 168 | 420 | 413 |
| Other external expenses | -136 | -89 | -415 | -341 |
| Cost for remuneration to employees | -57 | -39 | -206 | -153 |
| Depreciation, amortization and impairment losses | -3 | -3 | -13 | -10 |
| Total operating expenses | -196 | -131 | -634 | -504 |
| Operating profit (EBIT) | -136 | 37 | -214 | -91 |
| Group contribution | 210 | 213 | 210 | 213 |
| Dividend | - | - | 1 | - |
| Dividend from Group companies | - | - | 659 | - |
| Interest income and similar items | - | -1 | 2 | 0 |
| Interest expense and similar items | -54 | -64 | -249 | -205 |
| Total financial net | 156 | 148 | 623 | 8 |
| Profit before tax | 20 | 185 | 409 | -83 |
| Income tax | -52 | -71 | 1 | -18 |
| Profit for the period | -32 | 114 | 410 | -101 |
Condensed balance sheet – Parent Company
| SEK million | 31.12.2024 | 31.12.2023 |
|---|---|---|
| Assets Other intangible assets |
61 | 24 |
| Property, plant and equipment | 3 | 3 |
| Right-of-use assets | 18 | 23 |
| Financial assets | 9,916 | 9,910 |
| Deferred tax assets | 3 | 2 |
| Total non-current assets | 10,001 | 9,962 |
| Current receivables | 314 | 682 |
| Cash and cash equivalents | 0 | 0 |
| Total current assets | 314 | 682 |
| Total assets | 10,315 | 10,644 |
| Equity and liabilities | ||
| Shareholders' equity | 5,402 | 6,000 |
| Non-controlling interests | - | - |
| Total equity including non-controlling interests | 5,402 | 6,000 |
| Liabilities to banks and credit institutions | 526 | 1,500 |
| Lease liabilities | 13 | 17 |
| Other non-current liabilities | 33 | 27 |
| Total non-current liabilities | 572 | 1,544 |
| Liabilities to banks and credit institutions | 1,026 | 1,500 |
| Lease liabilities | 5 | 5 |
| Accounts payable | 31 | 19 |
| Other current liabilities | 3,279 | 1,576 |
| Total current liabilities | 4,341 | 3,100 |
| Total equity and liabilities | 10,315 | 10,644 |
Price trends in raw materials
For information regarding cocoa and cocoa butter please refer to information at www.icco.org
Additional information
Conference call
AAK will host a conference call for investors and analysts on February 5, 2025, at 10 a.m. Central European Time (CET). The presentation can be followed via teleconference or webcast. Please visit www.aak.com for details.
The annual and quarterly reports are published on www.aak.com.
Financial calendar
April 10: Annual and Sustainability Reports 2024
April 24, 2025: Q1 and three-month report for 2025
May 8, 2025: Annual General Meeting, Malmö
July 17, 2025: Q2 and six-month report for 2025
October 23, 2025: Q3 and nine-month report for 2025
February 5, 2026: Q4 and year-end report for 2025
Forward-looking statements
This report contains forward-looking statements. Such statements are subject to risks and uncertainties since various factors, many of which are beyond the control of AAK AB (publ.), may cause actual developments and results to differ materially from the expectations expressed in this report.
Governing text
The Swedish text shall govern for all purposes and prevail in the event of any discrepancy between the versions.
Investor Relations contact
Carl Ahlgren Head of IR, Communication & Brand Mobile: +46 706 81 07 34 E-mail: [email protected]
we do is about Making Better Happen Everything
Everything AAK does is about Making Better Happen™. We specialize in plant-based oils and fats, the valueadding ingredients in many products people love to consume.
Interim report | Q4 2024
We make these products better tasting, healthier, and more sustainable. At the heart of AAK's offer is customer co-development, combining our desire to understand what Making Better Happen™ means for each customer with the unique flexibility of our production assets and deep knowledge of products and industries, including Chocolate & Confectionery, Bakery, Dairy, Plant-based Foods, Special Nutrition, Foodservice, and Personal Care.
Our dedicated team with approximately 4,000 employees support our close collaboration with customers through 25 regional sales offices, 16 dedicated Customer Innovation Centers, and with the support of around 20 production facilities.
Listed on Nasdaq Stockholm and headquartered in Malmö, Sweden, AAK has been Making Better Happen™ for 150 years.
