First quarter 2025

Interim report

Financial highlights

Q1 2025

Volumes, excluding the effect from the Hillside divestment, declined by 5 percent to 503,000 MT (530,000). Including the impact from the divestment, volumes declined by 10 percent.
Operating profit increased by 1 percent, reaching SEK 1,261 million (1,254), including a negative currency translation effect of SEK 57 million. At fixed foreign exchange rates, operating profit increased by 5 percent.
Profit for the period totaled SEK 934 million (934).
Earnings per share equaled SEK 3.59 (3.59).
Cash flow from operating activities amounted to negative SEK 492 million (positive 717).
Return on Capital Employed (ROCE), R12M, was 22.0 percent (22.4 percent on December 31, 2024).

	Q1 2025	Q1 2024	Δ %	R12M 2025	Full year 2024
Volumes, '000 MT	503	556	-10	2,120	2,173
Volumes excl. divested operation, '000 MT1)	503	530	-5	2,039	2,066
Operating profit, SEK million	1,261	1,254	+1	4,903	4,896
Operating profit excl. divested operation, SEK million1)	1,261	1,244	+1	4,829	4,812
Operating profit per kilo, SEK	2.51	2.26	+11	2.31	2.25
Operating profit per kilo excl. divested operation, SEK1)	2.51	2.35	+7	2.37	2.33
Profit for the period, SEK million	934	934	+0	3,542	3,542
Earnings per share, SEK	3.59	3.59	+0	13.62	13.62
Cash flow from operating activities, SEK million	-492	717	-	-	2,352
Return on Capital Employed (R12M), percent	22.0	20.4	+8	22.0	22.4

Rolling 12 months, '000 MT

1,500

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

6,000

Resilient operating profit despite soft end markets

With the first quarter of 2025 behind us, and in an environment of ongoing volatility, we remain focused on executing our strategic priorities. We are concentrating on what we can control—optimizing our product mix, enhancing operational efficiency, and driving productivity improvements across the organization. At the same time, we continue to prioritize innovation and work even more closely with our customers to anticipate their needs and deliver solutions that create value.

Business performance

In the first quarter, operating profit grew 1 percent compared to the corresponding quarter last year, despite declining volumes. The year-over-year development was driven by strong margin performance in both Food Ingredients and Chocolate & Confectionery Fats. At fixed foreign exchange rates operating profit increased by 5 percent.

Volumes, excluding the impact from the Hillside divestment, declined by 5 percent in the first quarter compared to the same period last year, and by 3 percent compared to the fourth quarter of last year.

Chocolate & Confectionery Fats grew volumes by 1 percent compared to Q4 2024. However, both Chocolate & Confectionery Fats and Food Ingredients faced soft endmarkets, resulting in a year-over-year decline. Volumes in Chocolate & Confectionery Fats were down 4 percent yearon-year, while Food Ingredients, excluding the Hillside divestment, declined by 7 percent. Technical Products & Feed volumes declined by 1 percent compared to the first quarter of 2024.

Profitability was strong, with operating profit per kilo reaching SEK 2.51 in the quarter. This marked an increase of 11 percent, or 16 percent at fixed currencies, compared to the first quarter of 2024. Excluding the effect of the Hillside divestment, operating profit per kilo increased by 7 percent. The improvement was partly driven by continued internal optimization, including productivity and procurement enhancements in our oil refining plants, and partly by better portfolio and price management, with continued higher sales of specialty solutions. Favorable market conditions for cocoa butter alternatives, as well as a positive product mix, further supported first-quarter profitability.

Operational cash flow amounted to negative SEK 492 million, impacted by rising costs of raw materials, as well as the previously communicated restructuring of two sourcing agreements.

Adapting to global trade dynamics

Our decentralized business model with localized production continues to serve us well. It reduces complexity, shortens lead times, and reduces our exposure to cross-border disruptions. However, some raw materials, such as palm oil, are not grown in all regions and must be sourced internationally, which may involve tariffs that increase the cost of these materials.

We will continue to explore cost-efficient sourcing options where quality and supply reliability can be maintained. Thanks to our diversified model and proactive sourcing approach, we do not expect any material impact on our margins, and we remain committed to minimizing the impact on our customers wherever possible.

Progression towards the 2030 Aspiration

At our Capital Markets Day in November 2024, we shared our updated 2030 Aspiration and outlined opportunities to further align the organization and drive profitable growth. We highlighted "Cost performance" as a key strategic focus area, with continued emphasis on improving efficiency and unlocking value across the business.

As one of several tools to support our 2030 Aspiration – which includes, among other things, strengthened cost control – we are now launching a cost optimization program. The initiatives within this program are expected to generate annual savings of approximately SEK 300 million, with SEK 50 million expected in 2025 and full run-rate impact anticipated by mid-2026. These savings will be driven by organizational simplification, efficiency improvements, and targeted initiatives across key parts of the business. As part of this effort, a workforce reduction of up to 5 percent is expected, with the overall restructuring estimated to result in a onetime cost of between approximately SEK 200 to 250 million, to be realized in the second quarter this year.

Concluding remarks

Looking ahead, we remain prudently optimistic about AAK's long-term potential, and we are firmly committed to delivering on our 2030 Aspiration. At the same time, we remain attentive to the dynamic global trade environment and the softer sentiment in some of our end markets, along with their potential implications for the remainder of 2025. By staying focused on what we can control and executing with discipline, we are confident in our ability to continue creating long-term value.

Johan Westman, President and CEO

AAK Group, Q1 2025

Volumes

Volumes totaled 503,000 MT (556,000), a decrease of 10 percent compared to last year. Volumes, excluding the impact from the Hillside divestment, declined by 5 percent.

Net sales

Sales reached SEK 11,743 million (11,118), an increase of 6 percent, including a negative currency translation effect of SEK 329 million. The increase in net sales was primarily driven by higher raw material prices and increased sales of specialty oils.

Operating profit

Operating profit totaled SEK 1,261 million (1,254), corresponding to an increase of 1 percent compared to the same quarter in 2024. Currency translation had a negative effect of SEK 57 million, of which SEK 34 million was related to Food Ingredients and SEK 23 million to Chocolate & Confectionery Fats. Operating profit at fixed foreign exchange rates increased by 5 percent.

Operating profit per kilo totaled SEK 2.51 (2.26), an increase of 11 percent. Currency translation had a negative effect of SEK 0.11 per kilo. At fixed foreign exchange rates, operating profit per kilo increased by 16 percent.

Excluding the effect of the Hillside divestment, operating profit per kilo increased by 7 percent. The improvement was partly driven by continued internal optimization, including productivity and procurement enhancements in our oil refining plants, and partly by better portfolio and price management, with continued higher sales of specialty solutions. Favorable market conditions for cocoa butter alternatives, as well as a positive product mix, further supported first-quarter profitability.

Net financial costs and tax costs

Net financial costs totaled SEK 45 million (23). Financial costs increased mainly due to reporting in hyperinflationary economies (IAS 29), partly offset by lower interest rate expenses. Reported tax costs correspond to an average tax rate of 23 percent (24).

Earnings per share

Earnings per share equaled SEK 3.59 (3.59).

Cash flow and investments

Operating cash flow, including changes in working capital, amounted to negative SEK 492 million (positive 717). Cash flow from working capital amounted to negative SEK 1,399 million (negative 729), 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 impact on accounts payable was primarily driven by the previously communicated restructuring of two sourcing agreements, while the impact on accounts receivable was due to the increase in raw material prices.

Cash outflow from investment activities amounted to SEK 272 million (264). 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 22.0 percent (22.4 on December 31, 2024).

Financial position

The equity-to-asset ratio was 61 percent (59 percent on December 31, 2024). Net debt on March 31, 2025, totaled SEK 2,473 million (SEK 1,696 million on December 31, 2024). Net debt/EBITDA totaled 0.43 (0.29 as of December 31, 2024).

On March 31, 2025, the Group had total credit facilities of SEK 7,796 million (8,388 as of December 31, 2024), of which there were SEK 6,412 million (6,765 as of December 31, 2024) in committed credit facilities. Unused committed credit facilities on March 31, 2025 totaled SEK 4,427 million (4,929 as of December 31, 2024). Non-committed credit facilities totaled SEK 1,384 million (1,623 as of December 31, 2024), SEK 1,178 million (1,428 as of December 31, 2024) of which were unused.

Employees

The average number of employees on March 31, 2025, was 4,021 (3,992 as of December 31, 2024).

Selected events

2024 Annual and Sustainability reports published – Invitation to the AGM

On April 10, AAK published its 2024 Annual and Sustainability reports, highlighting progress and performance across the business. The reports are available in both English and Swedish and can be found on our website.

Following the release for the 2024 reports, we have also invited our shareholders to attend the Annual General Meeting (AGM) on May 8, 2025, at 14:00 Central European Time. The AGM will be held at Clarion Hotel Malmö Live, Dag Hammarskjölds torg 2, in Malmö, Sweden.

This event offers an opportunity for shareholders to engage with the company's leadership and review the past year's performance.

Marcel Mensink has been appointed President, Global Operations

We are pleased to announce that Marcel Mensink has been appointed President, Global Operations, effective June 1, 2025.

With experience in operations and supply chain management, Marcel has served as Chief Operating & Supply Chain Officer at Cloetta since 2017, leading procurement, manufacturing and supply chain operations. Prior to Cloetta, he spent nearly 20 years at Mars in various leadership roles, overseeing multiple plants and supply chains, and working in product management and R&D.

Marcel will be taking over from David Smith, who joined AAK in 2001 and is retiring after a long and successful career with the company. We thank David for his contributions and wish him all the best in his well-deserved retirement.

AAK earns year-on-year improvements in two global sustainability ratings

EcoVadis, a global sustainability assessment platform, ranked AAK's sustainability work in the top 6 percentile of the companies it rated in 2025. This is one percentage point higher than last year and puts AAK at the very top of the silver category, which includes companies in the top 6-15 percentile.

We also saw a year-on-year improvement in our scores from CDP, a global environmental disclosure and rating system. Our CDP scores increased across each of our three surveyed categories:

Climate Change: C (last year: D)
Water Security: C (last year: D)
Forests: C (last year: C for palm / D for soy)

These improvements in our ratings validate the impact of our ESG initiatives, which have recently included increasing our percentage of VDF palm, reducing our operational carbon emissions, and connecting more than three-quarters of our Tier 1 raw material suppliers to the Sedex human rights due diligence platform.