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AAK Interim / Quarterly Report 2024
2874_10-q_2024-04-25_345b1b6e-7711-4516-817c-abc01d3e341b.pdf
Interim / Quarterly Report
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First quarter 2024
Interim report
Financial highlights
Q1 2024
- Volumes increased by 3 percent to 556,000 MT (541,000), driven by Chocolate & Confectionery Fats and Food Ingredients.
- Operating profit increased by 32 percent, reaching SEK 1,254 million (952), including a negative currency translation effect of SEK 63 million. At fixed foreign exchange rates, operating profit increased by 38 percent.
- Profit for the period totaled SEK 934 million (662).
- Earnings per share equaled SEK 3.59 (2.55).
- Cash flow from operating activities amounted to SEK 717 million (1,102).
- Return on Capital Employed (ROCE), R12M, was 20.4 percent (19.1 percent on December 31, 2023).
| Q1 2024 |
Q1 2023 |
Δ % | R12M 2024 |
Full year 2023 |
|
|---|---|---|---|---|---|
| Volumes, '000 MT | 556 | 541 | +3 | 2,138 | 2,123 |
| Operating profit, SEK million | 1,254 | 952 | +32 | 4,418 | 4,116 |
| Operating profit per kilo, SEK | 2.26 | 1.76 | +28 | 2.07 | 1.94 |
| Profit for the period, SEK million | 934 | 662 | +41 | 3,226 | 2,954 |
| Earnings per share, SEK | 3.59 | 2.55 | +41 | 12.39 | 11.35 |
| Cash flow from operating activities, SEK million | 717 | 1,102 | -35 | 4,929 | 5,314 |
| Return on Capital Employed (R12M), percent | 20.4 | 15.2 | +34 | 20.4 | 19.1 |
Profitability and organic volume growth mark a strong start to the year
It is encouraging to see volumes returning to growth. With the added volumes, we are driving profitability not only through our global optimization programs but also via the operating leverage that comes with our organic volume growth. As a result, we are experiencing continued growth in operating profit combined with an improved return on capital employed.
Business performance
Volumes continued to improve sequentially and grew by 3 percent compared to the same quarter last year, with both Chocolate & Confectionery Fats and Food Ingredients contributing. Volumes in Technical Products & Feed declined slightly on top of a high comparator from last year.
Profitability, measured as operating profit per kilo, was strong and grew year-over-year, driven by Chocolate & Confectionery Fats and Food Ingredients. The strong profitability was mainly attributable to our global optimization programs, including production process optimization and portfolio & price management, as well as operating leverage from increased volumes.
Driven by the improved profitability and rising volumes, operating profit grew 32 percent compared to the first quarter last year. At fixed foreign exchange rates, operating profit increased by 38 percent. This growth was driven by Food Ingredients and Chocolate & Confectionery Fats, while Technical Products & Feed declined.
Operating cash flow was solid but lower than last year. This was primarily due to the impact of higher accounts receivables resulting from the increase in volumes.
Cocoa prices
As a company, we face both challenges and opportunities in the markets where we operate. A recent example is soaring cocoa prices, which reached unprecedented heights in the first quarter.
As a leading Multi-oil Ingredient House, we are committed to delivering value to our customers regardless of market conditions. Our cocoa butter alternatives not only enhance shelf life, flavor, and texture but also offer a cost-effective substitute for cocoa butter.
Encouraged by the rising interest in our solutions, we are also mindful of the potential effects of high cocoa prices on overall chocolate consumption. One way to help alleviate some of the inflationary pressure consumers are facing is for the relevant regulatory agencies to consider raising the current limit of 5 percent on vegetable fat alternatives allowed in cocoa and chocolate products.
Closing in on a deforestation-free supply chain
A growing trend is the shift from animal-based to plantbased diets, which aims to cut down on animal products and make our food choices more sustainable. This transition acknowledges that plant-based foods require less land to yield the same number of calories as their animal-based counterparts.
Our strategy centers on sustainable agriculture and deforestation-free supply chains. By 2025, we're committed to achieving full traceability of palm oil sources and maintaining a deforestation-free palm supply chain.
As reported in our recently published Sustainability Report, our global palm traceability increased, reaching 93 percent, with 83 percent verified deforestation-free. This progress underscores our dedication to sustainable practices and responsible sourcing.
Delivering on our strategy and 2030 aspiration
By leveraging our expertise in plant-based solutions and a strategic approach with multi-oil ingredients, AAK is effectively meeting the growing demand for alternatives to animal and fossil-based products. Our financial aspiration, set in November 2022, aims at doubling our operating profit per kilo and outgrowing the underlying market.
Following a period of profitability improvement, I am pleased to see that we have successfully reached a part of our 2030 aspiration - to double the operating profit per kilo. However, our growth journey doesn't end there, and at present, there is no immediate need to adjust our long-term aspiration. We remain steadfast in our dedication to Making Better Happen™ via a combination of improved profitability and volume growth, ensuring we deliver on our target to sustain an average operating profit increase of 10 percent over time.
Concluding remarks
AAK has started the year on a promising trajectory, marked by organic volume growth and improved profitability and we maintain a prudently optimistic outlook for the future. Our strategic position equips us well to seize new growth opportunities, and we remain steadfast in our commitment to delivering long-term value to our shareholders.
Johan Westman, President and CEO
AAK Group, Q1 2024
Volumes
Volumes totaled 556,000 MT (541,000), an increase of 3 percent compared to last year.
Net sales
Sales reached SEK 11,118 million (12,345), a decrease of 10 percent. The decrease was driven by changes in price, mainly due to lower raw material costs, as well as a negative currency translation effect of SEK 85 million. The decrease was somewhat mitigated by the increase in volumes.
Operating profit
Operating profit totaled SEK 1,254 million (952), corresponding to an increase of 32 percent compared to the same quarter in 2023.
The growth was largely driven by strong operating profit per kilo in Food Ingredients and Chocolate & Confectionery Fats.
Currency translation had a negative effect of SEK 63 million, of which SEK 17 million was related to Food Ingredients and SEK 46 million to Chocolate & Confectionery Fats. Operating profit at fixed foreign exchange rates increased by 38 percent.
Operating profit per kilo totaled SEK 2.26 (1.76), an increase of 28 percent. Currency translation had a negative effect of SEK 0.11 per kilo. At fixed foreign exchange rates, operating profit per kilo increased by 35 percent. AAK achieved this growth mainly due to our global optimization programs, including production process optimization and portfolio & price management, as well as operational leverage from increased volumes.
Net financial costs and tax costs
Net financial costs totaled SEK 23 million (77). The financial costs decreased due to reporting in hyperinflationary economies (IAS 29) and reduced debt level, partly offset by higher interest rates. Reported tax costs correspond to an average tax rate of 24 percent (24).
Earnings per share
Earnings per share equaled SEK 3.59 (2.55).
Cash flow and investments
Operating cash flow, including changes in working capital, amounted to SEK 717 million (1,102). Cash flow from working capital amounted to negative SEK 729 million (377), mainly due to negative cash flows from accounts receivable and accounts payable, partially offset by a positive cash flow from inventory. The negative cash flow effect from accounts receivable was mainly driven by the increase in volumes.
Cash outflow from investment activities amounted to SEK 264 million (362), of which SEK 0 million (89) stemmed from acquisitions. Capital expenditure was primarily for 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 20.4 percent (19.1 on December 31, 2023).
Financial position
The equity-to-asset ratio was 58 percent (56 percent on December 31, 2023). Net debt on March 31, 2024, totaled SEK 2,014 million (SEK 2,425 million on December 31, 2023). Net debt/EBITDA totaled 0.38 (0.49 as of December 31, 2023).
On March 31, 2024, the Group had total credit facilities of SEK 8,962 million (8,605 as of December 31, 2023), of which there were SEK 7,351 million (7,085 as of December 31, 2023) in committed credit facilities. Unused committed credit facilities on March 31, 2024, totaled SEK 5,767 million (5,559 as of December 31, 2023). Non-committed credit facilities totaled SEK 1,611 million (1,520 as of December 31, 2023), SEK 1,475 million (1,352 as of December 31, 2023) of which were unused.
Employees
The average number of employees on March 31, 2024, was 4,120 (4,128 as of December 31, 2023).
Selected events
Opening of a new Innovation Centre in Antwerp, Belgium
On February 21, we inaugurated a new Innovation Centre for bakery applications in Antwerp, Belgium. This fully equipped bakery laboratory encompasses an experienced technical team dedicated to collaborating and co-developing new bakery innovations together with customers in the industry across Europe. In addition, the lab will host AAK Bakery Academies, offering training and showcasing product innovations.
AAK receives EcoVadis silver medal and is among the top 15 percent of companies assessed globally
AAK has been awarded a silver medal by EcoVadis. This accomplishment places us among the top 15 percent of companies assessed by EcoVadis in the past 12 months. We increased our overall score from 65 to 70, mainly in the categories of Labor & Human Rights and Sustainable Procurement.
AAK ranks 6th in sustainability out of 130 Swedish corporations
We are proud to have been ranked 6th in the recently published report Sustainable Corporations 2023 (Hållbara Bolag 2023), which maps, assesses, and ranks the sustainability work of 130 listed Swedish corporations. The report has been conducted six years in a row by the Swedish newspapers Aktuell Hållbarhet and Dagens Industri together with Lund University. This year's assessment focused on the company's preparations for the CSRD (Corporate Sustainability Reporting Directive) and biodiversity.
Food Ingredients, Q1 2024
Operating profit +34%
Operating profit per kilo +31%
| Q1 2024 |
Q1 2023 |
Δ % | R12M 2024 |
Full year 2023 |
|
|---|---|---|---|---|---|
| Volumes, '000 MT | 344 | 337 | +2 | 1,371 | 1,364 |
| Net sales, SEK million | 6,952 | 7,859 | -12 | 28,984 | 29,891 |
| Operating profit, SEK million | 779 | 582 | +34 | 2,839 | 2,642 |
| Operating profit per kilo, SEK | 2.26 | 1.73 | +31 | 2.07 | 1.94 |
Volumes
Volumes increased by 2 percent compared to the same period in the previous year. The volume growth was primarily driven by Dairy and Bakery, while Foodservice declined slightly.
The growth in Bakery resulted from solid performance in the Americas and Asia, the Middle East & Africa, while volumes in Europe declined.
In Dairy, the volume growth was mainly driven by strong performance in the Americas.
The first-quarter volume performance in Special Nutrition was solid and grew slightly compared to the first quarter of last year, which was driven by the Americas and Asia, the Middle East & Africa.
The slight decline in Foodservice came on top of solid performance in the first quarter of last year.
Net sales
Net sales reached SEK 6,952 million (7,859), a decrease of 12 percent, or SEK 907 million, including a positive currency translation effect of SEK 24 million.
Operating profit
Operating profit increased by 34 percent to SEK 779 million (582), despite a negative currency translation effect of SEK 17 million. At fixed foreign exchange rates, operating profit increased by 37 percent.
Operating profit per kilo increased to SEK 2.26 (1.73), corresponding to 31 percent growth with currencies having a negative effect of SEK 0.05 per kilo. The increase was broadbased, with all main sub-segments improving except Special Nutrition, which was roughly flat.
Food Ingredients - Operating profit per kilo
Chocolate & Confectionery Fats, Q1 2024
Operating profit +54%
Operating profit per kilo +44%
| Q1 2024 |
Q1 2023 |
Δ % | R12M 2024 |
Full year 2023 |
|
|---|---|---|---|---|---|
| Volumes, '000 MT | 133 | 124 | +7 | 482 | 473 |
| Net sales, SEK million | 3,554 | 3,735 | -5 | 13,513 | 13,694 |
| Operating profit, SEK million | 505 | 327 | +54 | 1,699 | 1,521 |
| Operating profit per kilo, SEK | 3.80 | 2.64 | +44 | 3.52 | 3.22 |
Volumes
Volumes increased by 7 percent compared to the same period last year, with demand for spread solutions outpacing that of chocolate bars. The development is consistent with our strategic focus on high-specialty solutions, which was further supported by strong demand for our cocoa butter alternatives. These alternatives, mainly CBEs, not only enhance shelf life, flavor, and texture but also provide a cost-effective substitute for cocoa butter.
The volume growth was broad-based, with all three regions contributing.
Net sales
Net sales for the business area reached SEK 3,554 million (3,735), a 5 percent decrease, including a negative currency translation effect of SEK 109 million.
Operating profit
Operating profit reached SEK 505 million (327), an increase of 54 percent compared to the same quarter last year. Currency translation had a negative impact of SEK 46 million. At fixed foreign exchange rates, operating profit increased by 69 percent.
The operating profit per kilo remained strong, increasing to SEK 3.80 (2.64). Currency translation had a negative impact of SEK 0.35 per kilo. At fixed foreign exchange rates, operating profit per kilo increased by 57 percent.
The increase in operating profit per kilo was broad-based, with all three regions improving. This was further supported by operating leverage from increased volumes.
Chocolate & Confectionery Fats - Operating profit
Chocolate & Confectionery Fats - Operating profit per kilo
Technical Products & Feed, Q1 2024
Operating profit -51%
Operating profit per kilo -50%
| Q1 2024 |
Q1 2023 |
Δ % | R12M 2024 |
Full year 2023 |
|
|---|---|---|---|---|---|
| Volumes, '000 MT | 79 | 80 | -1 | 285 | 286 |
| Net sales, SEK million | 612 | 751 | -19 | 2,304 | 2,443 |
| Operating profit, SEK million | 53 | 108 | -51 | 203 | 258 |
| Operating profit per kilo, SEK | 0.67 | 1.35 | -50 | 0.71 | 0.90 |
Volumes
Volumes declined by 1 percent compared to the same period in 2023 but improved by 5 percent sequentially. The year-on-year decline was driven by soft performance in Technical Products, somewhat mitigated by slight growth in Feed.
Net sales
Net sales for the business area reached SEK 612 million, decreasing by SEK 139 million compared to SEK 751 million during the first quarter of last year.
Operating profit
Operating profit totaled SEK 53 million (108), a 51 percent decrease compared to last year.
Interim report | Q4 2023
Mainly as a result of an unfavorable mix due to lower volumes in Technical Products, and year-over-year lower margins in Biofuels, operating profit per kilo decreased by 50 percent to SEK 0.67 (1.35).
Technical Products & Feed - Operating profit
Technical Products & Feed - Operating profit per kilo
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 changes other than what has been commented on regarding market developments during 2023 and 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 18–19.
Definitions
For definitions, please see our Annual Report.
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 negative SEK 72 million (negative 72). Interest-bearing liabilities minus cash and cash equivalents and interest-bearing assets totaled SEK 4,372 million (4,443 as of December 31, 2023). Investments in intangible and tangible assets amounted to SEK 17 million (2).
The Parent Company's balance sheet and income statement are shown on pages 20–21. 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.
Audit review
This report has not been reviewed by the company's auditors.
Malmö, April 25, 2024
Johan Westman President and CEO
E-mail: [email protected]
Auditor's review report
For further information, please contact: Carl Ahlgren Head of IR, Communication & Brand Mobile: +46 70 681 07 34
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 April 25, 2024.
Condensed income statement
| SEK million | Q1 2024 |
Q1 2023 |
Full year 2023 |
|---|---|---|---|
| Net sales | 11,118 | 12,345 | 46,028 |
| Other operating income | 43 | 62 | 225 |
| Total operating income | 11,161 | 12,407 | 46,253 |
| Change in inventories of finished goods and work in progress | -23 | -41 | -64 |
| Raw materials and consumables | -7,725 | -9,293 | -33,421 |
| Goods for resale | -181 | -162 | -811 |
| Other external expenses | -873 | -914 | -3,577 |
| Cost for remuneration to employees | -866 | -816 | -3,399 |
| Depreciation, amortization and impairment losses | -212 | -228 | -877 |
| Other operating expenses | -27 | -1 | 12 |
| Total operating expenses | -9,907 | -11,455 | -42,137 |
| Operating profit (EBIT) | 1,254 | 952 | 4,116 |
| Financial income | 60 | 23 | 83 |
| Financial expense | -83 | -100 | -375 |
| Total financial net | -23 | -77 | -292 |
| Profit before tax | 1,231 | 875 | 3,824 |
| Income tax | -297 | -213 | -870 |
| Profit for the period | 934 | 662 | 2,954 |
| Attributable to non-controlling interests | 1 | 1 | 8 |
| Attributable to the Parent Company's shareholders | 933 | 661 | 2,946 |
| Earnings per share before dilution, SEK1) | 3.59 | 2.55 | 11.35 |
| Earnings per share after dilution, SEK2) | 3.59 | 2.55 | 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 | Q1 2024 |
Q1 2023 |
Full year 2023 |
|---|---|---|---|
| Profit for the period | 934 | 662 | 2,954 |
| Other comprehensive income: | |||
| Items that will not be reclassified to profit or loss | |||
| Remeasurements of post-employment benefit obligations | -2 | 0 | -11 |
| -2 | 0 | -11 | |
| Items that may subsequently be reclassified to profit or loss | |||
| Translation differences | 999 | 175 | -146 |
| Fair-value changes in cash flow hedges | -3 | -3 | -12 |
| Tax related to fair-value changes in cash flow hedges | 0 | 1 | 3 |
| 996 | 173 | -155 | |
| Total other comprehensive income for the period | 994 | 173 | -166 |
| Total comprehensive income for the period | 1,928 | 835 | 2,788 |
| Attributable to non-controlling interests | 1 | 1 | 9 |
| Attributable to the Parent Company's shareholders | 1,927 | 834 | 2,779 |
Condensed balance sheet
| SEK million | 31.03.2024 | 31.03.2023 | 31.12.2023 |
|---|---|---|---|
| Assets | |||
| Goodwill | 2,848 | 2,666 | 2,712 |
| Other intangible assets | 312 | 289 | 290 |
| Property, plant and equipment | 7,943 | 7,143 | 7,493 |
| Right-of-use assets | 753 | 651 | 760 |
| Shares in associated companies | 9 | 43 | 13 |
| Financial assets | 81 | 67 | 79 |
| Deferred tax assets | 438 | 349 | 390 |
| Total non-current assets | 12,384 | 11,208 | 11,737 |
| Inventory | 9,290 | 9,759 | 8,656 |
| Accounts receivables | 6,079 | 6,531 | 5,312 |
| Current receivables | 3,577 | 3,193 | 3,343 |
| Cash and cash equivalents | 1,357 | 1,405 | 1,503 |
| Total current assets | 20,303 | 20,888 | 18,814 |
| Total assets | 32,687 | 32,096 | 30,551 |
| Equity and liabilities | |||
| Shareholders' equity | 18,997 | 15,870 | 17,117 |
| Non-controlling interests | 57 | 48 | 56 |
| Total equity including non-controlling interests | 19,054 | 15,918 | 17,173 |
| Liabilities to banks and credit institutions | 1,971 | 3,019 | 1,969 |
| Pension liabilities | 32 | 53 | 31 |
| Lease liabilities | 629 | 538 | 630 |
| Deferred tax liabilities | 688 | 566 | 656 |
| Other non-current liabilities | 456 | 285 | 455 |
| Total non-current liabilities | 3,776 | 4,461 | 3,741 |
| Liabilities to banks and credit institutions | 1,238 | 2,716 | 1,715 |
| Lease liabilities | 171 | 153 | 171 |
| Accounts payables | 3,804 | 4,110 | 3,804 |
| Other current liabilities | 4,644 | 4,738 | 3,947 |
| Total current liabilities | 9,857 | 11,717 | 9,637 |
| Total equity and liabilities | 32,687 | 32,096 | 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 | 933 | 1 | 934 |
| Other comprehensive income | 994 | 0 | 994 |
| Total comprehensive income | 1,927 | 1 | 1,928 |
| Long-term incentive | -47 | - | -47 |
| Closing balance March 31, 2024 | 18,997 | 57 | 19,054 |
| 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 | 661 | 1 | 662 |
| Other comprehensive income | 173 | 0 | 173 |
| Total comprehensive income | 834 | 1 | 835 |
| Closing balance March 31, 2023 | 15,870 | 48 | 15,918 |
Condensed cash flow statement
| SEK million | Q1 2024 |
Q1 2023 |
Full year 2023 |
|---|---|---|---|
| Operating activities Operating profit |
1,254 | 952 | 4,116 |
| Depreciation, amortization and impairment losses | 212 | 228 | 877 |
| Adjustment for other non-cash items | 139 | -249 | -65 |
| Interest paid and received | -48 | -49 | -208 |
| Tax paid | -111 | -157 | -979 |
| Cash flow before changes in working capital | 1,446 | 725 | 3,741 |
| Changes in inventory | 245 | 1,514 | 2,463 |
| Changes in accounts receivables | -528 | 166 | 1,241 |
| Changes in accounts payables | -189 | -1,275 | -1,545 |
| Changes in other working capital items | -257 | -28 | -586 |
| Changes in working capital | -729 | 377 | 1,573 |
| Cash flow from operating activities | 717 | 1,102 | 5,314 |
| Investing activities | |||
| Acquisition of intangible assets and property, plant and | -264 | -288 | -1,245 |
| equipment Acquisition of operations and shares, net of cash acquired |
- | -89 | -89 |
| Proceeds from sale of property, plant and equipment | 0 | 15 | 131 |
| Cash flow from investing activities | -264 | -362 | -1,203 |
| Financing activities | |||
| Changes in loans | -595 | -811 | -3,166 |
| Amortization of lease liabilities | -47 | -43 | -181 |
| Dividend paid | - | - | -714 |
| Cash flow from financing activities | -642 | -854 | -4,061 |
| Cash flow for the period | -189 | -114 | 50 |
| Cash and cash equivalents at start of period | 1,503 | 1,515 | 1,515 |
| Exchange rate difference for cash equivalents | 43 | 4 | -62 |
| Cash and cash equivalents at end of period | 1,357 | 1,405 | 1,503 |
Key ratios
| SEK million (unless otherwise stated) | Q1 2024 |
Q1 2023 |
Δ % | Full year 2023 |
|---|---|---|---|---|
| Income statement | ||||
| Volumes, '000 MT | 556 | 541 | +3 | 2,123 |
| Operating profit | 1,254 | 952 | +32 | 4,116 |
| Profit for the period | 934 | 662 | +41 | 2,954 |
| Financial position | ||||
| Total assets | 32,687 | 32,096 | +2 | 30,551 |
| Equity | 19,054 | 15,918 | +20 | 17,173 |
| Net working capital | 9,828 | 10,548 | -7 | 8,971 |
| Net debt | 2,014 | 4,968 | -60 | 2,425 |
| Cash flow | ||||
| Cash flow from operating activities | 717 | 1,102 | - | 5,314 |
| Cash flow from investing activities | -264 | -362 | - | -1,203 |
| Share data | ||||
| Number of shares, thousand | 259,559 | 259,559 | - | 259,559 |
| Earnings per share, SEK1) | 3.59 | 2.55 | +41 | 11.35 |
| Equity per share, SEK | 73.19 | 61.14 | +20 | 65.95 |
| Market value on closing date, SEK | 254,40 | 187.60 | +36 | 224.80 |
| Other key ratios | ||||
| Volume growth, percent | +3 | -6 | - | -6 |
| Operating profit per kilo, SEK | 2.26 | 1.76 | +28 | 1.94 |
| Return on Capital Employed (R12 months), percent | 20.4 | 15.2 | +34 | 19.1 |
| Net debt / EBITDA, multiple | 0.38 | 1.36 | -72 | 0.49 |
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 |
|---|---|---|---|---|---|---|
| Food Ingredients | 582 | 636 | 739 | 685 | 2,642 | 779 |
| Chocolate & Confectionery Fats | 327 | 275 | 438 | 481 | 1,521 | 505 |
| Technical Products & Feed | 108 | 44 | 47 | 59 | 258 | 53 |
| Group Functions | -65 | -75 | -81 | -84 | -305 | -83 |
| Operating profit AAK Group | 952 | 880 | 1,143 | 1,141 | 4,116 | 1,254 |
| Financial net | -77 | -68 | -85 | -62 | -292 | -23 |
| Profit before tax | 875 | 812 | 1,058 | 1,079 | 3,824 | 1,231 |
Net sales by market
2024
| SEK million | FI Q1 2024 |
CCF Q1 2024 |
TPF Q1 2024 |
Total Q1 2024 |
|---|---|---|---|---|
| Europe | 2,366 | 1,290 | 609 | 4,265 |
| North and South America | 3,590 | 1,549 | 1 | 5,140 |
| Asia | 914 | 654 | 2 | 1,570 |
| Other countries | 82 | 61 | 0 | 143 |
| Net sales | 6,952 | 3,554 | 612 | 11,118 |
| SEK million | FI Q1 2023 |
CCF Q1 2023 |
TPF Q1 2023 |
Total Q1 2023 |
|---|---|---|---|---|
| Europe | 2,911 | 1,299 | 751 | 4,961 |
| North and South America | 3,875 | 1,684 | 0 | 5,559 |
| Asia | 924 | 697 | 0 | 1,621 |
| Other countries | 149 | 55 | 0 | 204 |
| Net sales | 7,859 | 3,735 | 751 | 12,345 |
Financial instruments
| SEK million | 31.03.2024 | 31.12.2023 | Hierarchy level |
|---|---|---|---|
| Assets at fair value through profit and loss | |||
| Currency derivatives | 245 | 358 | 2 |
| Sales and purchase contracts | 914 | 927 | 2 |
| Investment in unlisted shares | 7 | 7 | 3 |
| Investment in unlisted funds | 60 | 55 | 3 |
| Derivatives used in cash flow hedges | |||
| Interest rate swaps | 10 | 13 | 2 |
| Assets at amortized cost | |||
| Financial non-current assets | 11 | 11 | - |
| Accounts receivables | 6,079 | 5,312 | - |
| Financial current assets | 135 | 97 | - |
| Cash and cash equivalents | 1,357 | 1,503 | - |
| Total financial assets | 8,818 | 8,283 | |
| Liabilities at fair value through profit and loss | |||
| Currency derivatives | 296 | 389 | 2 |
| Sales and purchase contracts | 781 | 430 | 2 |
| Liabilities at amortized cost | |||
| Liabilities to banks and credit institutions | 3,209 | 3,684 | - |
| Lease liabilities | 800 | 801 | - |
| Accounts payables | 3,804 | 3,804 | - |
| Other interest-bearing liabilities | 11 | 11 | - |
| Total financial liabilities | 8,901 | 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 | Q1 2024 |
Q1 2023 |
Full year 2023 |
|---|---|---|---|
| Food Ingredients | |||
| Organic volume growth | 2 | -7 | -5 |
| Acquisitions / divestments | - | - | - |
| Volume growth | 2 | -7 | -5 |
| Chocolate & Confectionery Fats | |||
| Organic volume growth | 7 | -9 | -9 |
| Acquisitions / divestments | - | - | - |
| Volume growth | 7 | -9 | -9 |
| Technical Products & Feed | |||
| Organic volume growth | -1 | 5 | -6 |
| Acquisitions / divestments | - | - | - |
| Volume growth | -1 | 5 | -6 |
| AAK Group | |||
| Organic volume growth | 3 | -6 | -6 |
| Acquisitions / divestments | - | - | - |
| Volume growth | 3 | -6 | -6 |
EBITDA
| SEK million | Q1 2024 |
Q1 2023 |
Full year 2023 |
|---|---|---|---|
| Operating profit (EBIT) | 1,254 | 952 | 4,116 |
| Depreciation, amortization and impairment losses | 212 | 228 | 877 |
| EBITDA | 1,466 | 1,180 | 4,993 |
Return on Capital Employed (ROCE)
| SEK million | R12M 31.03.2024 |
R12M 31.12.2023 |
|---|---|---|
| Total assets | 31,890 | 32,147 |
| Cash and cash equivalents | 1,469 | -1,500 |
| Financial assets | -331 | -213 |
| Accounts payables | -4,026 | -4,333 |
| Other non-interest-bearing liabilities | -4,410 | -4,566 |
| Capital employed | 21,654 | 21,535 |
| Operating profit, excluding items affecting comparability | 4,418 | 4,116 |
| Return on Capital Employed (ROCE), percent | 20.4 | 19.1 |
Net working capital
| SEK million | 31.03.2024 | 31.12.2023 |
|---|---|---|
| Inventory | 9,290 | 8,656 |
| Accounts receivables | 6,079 | 5,312 |
| Other current receivables, non-interest-bearing | 2,912 | 2,743 |
| Accounts payables | -3,804 | -3,804 |
| Other current liabilities, non-interest-bearing | -4,649 | -3,936 |
| Net working capital | 9,828 | 8,971 |
Net debt
| SEK million | 31.03.2024 | 31.12.2023 |
|---|---|---|
| Current interest-bearing receivables | 681 | 599 |
| Cash and cash equivalents | 1,357 | 1,503 |
| Pension liabilities | -32 | -31 |
| Lease liabilities | -800 | -801 |
| Non-current liabilities to banks and credit institutions | -1,971 | -1,969 |
| Current liabilities to banks and credit institutions | -1,238 | -1,715 |
| Other interest-bearing liabilities | -11 | -11 |
| Net debt | -2,014 | -2,425 |
Net debt / EBITDA
| SEK million | 31.03.2024 | 31.12.2023 |
|---|---|---|
| Net debt | 2,014 | 2,425 |
| EBITDA (rolling 12 months) | 5,279 | 4,993 |
| Net debt / EBITDA, multiple | 0.38 | 0.49 |
Equity to assets ratio
| 31.03.2024 | 31.12.2023 |
|---|---|
| 18,997 | 17,117 |
| 57 | 56 |
| 19,054 | 17,173 |
| 32,687 | 30,551 |
| 58.3 | 56.2 |
| SEK million | Q1 2024 |
Q1 2023 |
Full year 2023 |
|---|---|---|---|
| Net sales | 121 | 44 | 413 |
| Total operating income | 121 | 44 | 413 |
| Other external expenses | -82 | -46 | -341 |
| Cost for remuneration to employees | -49 | -32 | -153 |
| Depreciation, amortization and impairment losses | -3 | -1 | -10 |
| Total operating expenses | -134 | -79 | -504 |
| Operating profit (EBIT) | -13 | -35 | -91 |
| Profit from interest in Group companies | - | - | 213 |
| Interest income and similar items | 0 | 0 | 0 |
| Interest expense and similar items | -59 | -37 | -205 |
| Total financial net | -59 | -37 | 8 |
| Profit before tax | -72 | -72 | -83 |
| Income tax | 15 | 15 | -18 |
| Profit for the period | -57 | -57 | -101 |
AAK
Condensed balance sheet – Parent Company
| SEK million | 31.03.2024 | 31.12.2023 |
|---|---|---|
| Assets | ||
| Other intangible assets | 38 | 24 |
| Property, plant and equipment | 2 | 3 |
| Right-of-use assets | 22 | 23 |
| Financial assets | 9,909 | 9,910 |
| Deferred tax assets | 2 | 2 |
| Total non-current assets | 9,973 | 9,962 |
| Current receivables | 469 | 682 |
| Cash and cash equivalents | 0 | 0 |
| Total current assets | 469 | 682 |
| Total assets | 10,442 | 10,644 |
| Equity and liabilities | ||
| Shareholders' equity | 5,891 | 6,000 |
| Non-controlling interests | - | - |
| Total equity including non-controlling interests | 5,891 | 6,000 |
| Liabilities to banks and credit institutions | 1,500 | 1,500 |
| Lease liabilities | 16 | 17 |
| Other non-current liabilities | 16 | 27 |
| Total non-current liabilities | 1,532 | 1,544 |
| Liabilities to banks and credit institutions | 1,053 | 1,500 |
| Lease liabilities | 5 | 5 |
| Accounts payables | 11 | 19 |
| Other current liabilities | 1,950 | 1,576 |
| Total current liabilities | 3,019 | 3,100 |
| Total equity and liabilities | 10,442 | 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 April 25, 2024, at 10 a.m. 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
May 8, 2024: Annual General Meeting, Malmö, Sweden
July 18, 2024: Q2 and six month report for 2024
October 24, 2024: Q3 and nine month report for 2024
February 5, 2025: Q4 and year-end report for 2024
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 | Q1 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 ~4,100 employees support our close collaboration with customers through 25 regional sales offices, 16 dedicated Customer Innovation Centers, and with the support of more than 20 production facilities.
Listed on Nasdaq Stockholm and headquartered in Malmö, Sweden, AAK has been Making Better Happen™ for 150 years.
