Quarterly Report • Apr 20, 2017
Quarterly Report
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First quarter, 2017
We are happy and proud to see that our determined, targeted and hard work based upon our clear strategy is yielding good results. Again, a record-high operating profit was achieved with a double-digit year-on-year improvement for the Group, a trend since 2010. This is despite parts of the world markets experiencing material challenges.
Operating profit reached SEK 431 million (381), an improvement of 13 percent compared to the corresponding quarter in 2016. The currency translation impact was SEK 7 million, mainly related to Chocolate & Confectionery Fats. Operating profit, at fixed foreign exchange rates, improved by 11 percent.
Food Ingredients reported a strong quarter with high single-digit profit growth due to a continued improved product mix, including a higher portion of customer co-developed solutions.
Chocolate & Confectionery Fats reported another impressive quarter with double-digit organic volume growth and a continued improved product mix.
Ramp-up costs for the greenfield projects in Brazil and China have, according to plan, been absorbed in the reported profit for the two above-mentioned business areas.
Technical Products & Feed had a more challenging quarter compared to the exceptionally strong corresponding quarter in 2016.
Total volumes continued to grow nicely and were up 10 percent (5). Organic volume growth was 5 percent (0). The demand for speciality and semi-speciality products continued to be strong and generated organic volume growth of 6 percent (2).
Business area operating profit:
• Technical Products & Feed reached SEK 19 million (29).
Operating profit per kilo reached SEK 0.84 (0.82). The currency translation impact was positive SEK 0.01.
Operating profit per kilo for Food Ingredients was stable at 0.72 (0.73) mainly as a consequence of the improved product mix, offset by ramp-up costs related to greenfield investments.
Operating profit per kilo for Chocolate & Confectionery Fats reached SEK 2.00 (1.89), an improvement of 6 percent. There was continued strong organic volume growth for both speciality and semi-speciality products. Ramp-up costs related to greenfield investments have impacted negatively on operating profit per kilo. At fixed foreign exchange rates operating profit per kilo in Chocolate & Confectionery Fats improved by 3 percent.
Operating profit per kilo for Technical Products & Feed decreased, reaching SEK 0.26 (0.42).
Earnings per share increased by 16 percent, to SEK 6.47 (5.56), despite increased earnings in countries with high tax rates.
Sales amounted to SEK 6,677 million (4,963). The increase was mainly due to higher raw material prices, positive product mix, organic volume growth, a currency translation impact of SEK 74 million, and the effect of acquisitions.
The demand for speciality and semi-speciality products continued to be good, generating organic volume growth of 2 percent (0). However, the picture between the different segments was mixed.
After some challenging quarters the Bakery segment was back to organic growth in several important regions, however the European market remained a challenge.
The Dairy segment continued the strong trend from 2016 and reported high double-digit organic volume growth. North Latin America,
Asia, and the US showed particularly strong growth in this segment.
Special Nutrition, comprised of Infant, Senior and Medical Nutrition, reported medium singledigit volume growth, but with a significantly better product mix compared to the corresponding quarter last year. This was driven by a continued volume growth for our Infant Nutrition product range Akonino®, building on exceptionally strong volume growth last year. Our other Infant Nutrition product range InFat®, sold through Advanced Lipids AB, a joint venture of AAK and Enzymotec, had a strong volume growth in the quarter.
Foodservice reported declining volumes in the quarter. This was mainly due to more challenging market conditions in Europe.
Commodity products showed a low organic volume growth.
Both total volume growth and organic volume growth was 17 percent in the quarter.
There was continued strong organic volume growth for both speciality and semi-speciality products, with several showing exceptional volume growth – in mature as well as in emerging markets.
Operating cash flow including changes in working capital amounted to negative SEK 408 million (negative 16). As previously predicted, cash flow from working capital was negative, amounting to SEK 740 million (negative 380).
Increased raw material prices, strong organic volume growth and working capital tied up for the two greenfield investments, continued to have a negative impact on working capital. There has been a slight decrease in raw material prices during the first quarter which will have a positive impact during the second half of the year.
Calculated on a rolling 12 months basis, Return on Capital Employed (ROCE) was 15.6 percent (15.8 at December 31, 2016). ROCE declined due to increased raw material prices, greenfield investments in Brazil and China, and acquisitions. The ROCE for the first quarter was 14.0 percent compared to 15.2 percent for the corresponding quarter 2016.
Our greenfield project in Brazil is progressing according to plan.
The first very limited volumes from our new factory in China have been delivered during the first quarter. To be able to deliver the whole product range a gradual ramp-up will continue during the upcoming quarters.
Our new company program, The AAK Way, will guide us up through 2019. Our key focus with the program is to enable the company to continue to deliver strong organic growth. This will be achieved by focusing on five priority areas: Go to Market, Operational Excellence, Special Focus Areas, Innovation, and People. The implementation of the program is developing according to plan.
Based on AAK's customer value propositions for health and reduced costs, and our customer product co-development and solutions approach, we continue to remain prudently optimistic about the future.
The main drivers are the continued positive underlying development in Food Ingredients and a continued improvement in Chocolate & Confectionery Fats.
Arne Frank Chief Executive Officer and President
| Q1 | Q1 | Full year | ||
|---|---|---|---|---|
| SEK million (unless otherwise stated) | 2017 | 2016 | % | 2016 |
| Income statement | ||||
| Volumes ('000 MT) | 515 | 467 | +10 | 1,966 |
| Operating profit excluding non-recurring items | 431 | 381 | +13 | 1,615* |
| Operating profit including non-recurring items | 431 | 381 | +13 | 1,615* |
| Net profit | 275 | 249 | +10 | 1,040 |
| Financial position | ||||
| Total assets | 17,647 | 13,930 | - | 17,184 |
| Equity | 7,830 | 6,663 | - | 7,576 |
| Net working capital | 4,463 | 3,289 | - | 3,604 |
| Net interest-bearing debt | 3,168 | 2,279 | - | 2,620 |
| Cash flow | ||||
| EBITDA | 553 | 493 | +12 | 2,079 |
| Cash flow from operating activities | -408 | -16 | - | 1,213 |
| Cash flow from investing activities | -152 | -192 | - | -1,421 |
| Free cash flow | -560 | -208 | - | -208 |
| Earnings per share | ||||
| Earnings per share, SEK | 6.47 | 5.56 | +16 | 23.71 |
| Key figures | ||||
| Volume growth, % | +10 | +5 | - | +7 |
| Operating profit per kilo (excl. non- recurring items), SEK |
0.84 | 0.82 | +2 | 0.82 |
| Return on Capital Employed (R12 months), % | 15.6 | 16.0 | -3 | 15.8 |
| Net debt / EBITDA, multiple | 1.48 | 1.20 | +23 | 1.26 |
* Non-recurring items for the full year 2016 amounted to SEK 0 million and consist of acquisition costs of SEK 15 million and a net positive impact of SEK 15 million related to the acquisition of California Oils Corporation.
Quarter Rolling 12 months
Volumes increased by 10 percent (5) compared to the first quarter 2016. Organic volume growth was 5 percent (0) due to an increased demand for speciality and semi-speciality products, generating organic volume growth of 6 percent (2).
Sales amounted to SEK 6,677 million (4,963). The increase was mainly due to higher raw material prices, positive product mix, organic volume growth, a currency translation impact of SEK 74 million, and the effect of acquisitions.
Operating profit reached SEK 431 million (381), an improvement of 13 percent compared to the corresponding quarter in 2016. The currency translation impact was SEK 7 million. Operating profit at fixed foreign exchange rates improved by 11 percent.
Operating profit per kilo reached SEK 0.84 (0.82). The currency translation impact was positive SEK 0.01.
Net financial cost increased, amounting to SEK 41 million (38). The Group's borrowings in highinterest rate countries have increased due to greenfield projects and recently made acquisitions.
Operating cash flow including changes in working capital amounted to negative SEK 408 million (negative 16). As previously predicted, cash flow
from working capital was negative, amounting to SEK 740 million (negative 380).
Increased raw material prices, strong organic volume growth and working capital tied up for the two greenfield investments, continued to have a negative impact on working capital. There has been a slight decrease in raw material prices during the quarter which will have a positive impact during the second half of the year.
Cash outflow from investing activities amounted to SEK 152 million (192). The lower investments are mainly due to the completion of the greenfield projects.
The equity/assets ratio amounted to 44 percent (44 percent at December 31, 2016). Net debt at March 31, 2017, amounted to SEK 3,168 million (SEK 2,620 million at December 31, 2016).
At March 31, 2017, the Group had total committed credit facilities of SEK 6,132 million (6,139 as of December 31, 2016), with SEK 2,914 million of unused committed credit facilities at quarter-end.
The average number of employees at March 31, 2017 was 3,294 (3,256 at December 31, 2016). The increase of employees is mainly related to the greenfield projects.
No events after the balance sheet date to report.
| Q1 | Q1 | Full year | |||
|---|---|---|---|---|---|
| Operating profit | 2017 | 2016 | % | 2016 | |
| Volumes ('000 MT) | 345 | 314 | +10 | 1,325 | |
| +9 % |
Net sales, SEK million | 4,395 | 3,295 | +33 | 14,707 |
| Operating profit per kilo | Operating profit, SEK million | 249 | 229 | +9 | 996 |
| -1 % |
Operating profit per kilo, SEK | 0.72 | 0.73 | -1 | 0.75 |
Food Ingredients reported organic volume growth of 2 percent (negative 3). The demand for speciality and semi-speciality products continued to be good, generating organic volume growth of 2 percent (0). However, the picture between the different segments was mixed.
After some challenging quarters the Bakery segment was back to organic growth in several important regions, however the European market remained a challenge.
The Dairy segment continued the strong trend from 2016 and reported high double-digit organic volume growth. North Latin America, Asia, and the US showed particularly strong growth in this segment.
Special Nutrition, comprised of Infant, Senior and Medical Nutrition, reported medium single-digit volume growth, but with a significantly better product mix compared to the corresponding quarter last year. This was driven by a continued volume growth for our Infant Nutrition product range Akonino®, building on exceptionally strong volume growth last year. Our other Infant Nutrition product range InFat®, sold through Advanced Lipids AB, a joint venture of AAK and Enzymotec, had a strong volume growth in the quarter.
Foodservice reported declining volumes in the quarter. This was mainly due to more challenging market conditions in Europe.
Commodity products showed a low organic volume growth.
Sales amounted to SEK 4,395 million (3,295). The increase was mainly due to higher raw material prices, positive product mix, organic volume growth, a currency translation impact of SEK 20 million, and the effect of acquisitions.
Operating profit improved by 9 percent to SEK 249 million (229), due to a continued improved product mix, including a higher portion of customer co-developed solutions. Ramp-up costs for the greenfield projects in Brazil and China have, according to plan, been absorbed in the reported profit. The currency translation impact was SEK 1 million.
Operating profit per kilo for Food Ingredients was stable at 0.72 (0.73) mainly as a consequence of the improved product mix, offset by ramp-up costs related to greenfield investments.
We are expecting a continued positive underlying development for this business area.
Full year 2016
| Operating profit | 2017 | 2016 | % | 2016 | |
|---|---|---|---|---|---|
| Volumes ('000 MT) | 98 | 84 | +17 | 367 | |
| +23 % |
Net sales, SEK million | 1,903 | 1,362 | +40 | 6,117 |
| Operating profit per kilo | Operating profit, SEK million | 196 | 159 | +23 | 664 |
| +6 % |
Operating profit per kilo, SEK | 2.00 | 1.89 | +6 | 1.81 |
Total volumes for the business area increased by 17 percent (17). Organic volume growth continued to be impressive, increasing by 17 percent in the quarter (11).
There was continued strong organic volume growth for both speciality and semi-speciality products, with several showing exceptional volume growth – in mature as well as in emerging markets.
Net sales increased by SEK 541 million as a consequence of higher raw material prices, volume growth, an improved product mix and a currency translation impact of SEK 54 million.
Recent years' strong customer co-development, new innovative solutions, and further expansion of our geographical footprint are continuing to yield positive results.
Q1
Q1
Operating profit improved by 23 percent, reaching SEK 196 million (159). Ramp-up costs for the two greenfield projects in Brazil and China have, according to plan, been absorbed in the reported profit. The currency translation impact was SEK 6 million.
Operating profit per kilo for the business area continued to increase and reached SEK 2.00 (1.89). This was due to a further improved product mix, partly offset by absorbed ramp-up costs. At fixed foreign exchange rates operating profit per kilo improved by 3 percent.
We are expecting continued improvement in Chocolate & Confectionery Fats.
| Operating profit | Q1 2017 |
Q1 2016 |
% | Full year 2016 |
|
|---|---|---|---|---|---|
| -34 % |
Volumes ('000 MT) Net sales, SEK million |
72 379 |
69 306 |
+4 +24 |
274 1,233 |
| Operating profit per kilo | Operating profit, SEK million | 19 | 29 | -34 | 100 |
| -38 % |
Operating profit per kilo, SEK | 0.26 | 0.42 | -38 | 0.36 |
Volumes increased by 4 percent (0) compared to the corresponding quarter in 2016 due to volume growth in the feed business.
Net sales for the business area increased by SEK 73 million or by 24 percent as a result of higher raw material prices.
Operating profit reached SEK 19 million (29).
Pressure from higher raw material prices had an unfavorable impact on operating profit for the fatty acids business. Last year's corresponding quarter was exceptionally strong for the fatty acids business.
Operating profit per kilo at SEK 0.26 (0.42) decreased by 38 percent.
The operating profit is expected to be stable or to improve slightly compared to the prior year.
No significant changes have taken place in relations or transactions with related parties since 2016.
AAK is a global company represented in many countries and as such is exposed to a number of commercial and financial risks. Accordingly, risk management is an important process for AAK in its work to achieve established targets.
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's long-term risk exposure is assumed not to deviate from the inherent exposure associated with AAK's ongoing business operations.
For a more in-depth analysis of risks, refer to AAK's Annual Report for 2016.
This interim report is prepared in accordance with the Swedish Annual Accounts Act and IAS 34, Interim Financial Reporting. For information regarding the accounting policies applied, see the Annual Report for 2016. The accounting policies are unchanged, compared with those applied in 2016. A number of new and amended standards are effective for periods beginning after January 1, 2017. None of these is expected to have a significant effect on the consolidated financial statements of the Group or the Parent company.
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 reconciliation of Alternative Performance Measures, see pages 15–16.
For definitions, see the Annual Report for 2016.
The Annual General Meeting will be held on May 17, 2017 at 2 p.m. CET in Malmö, Sweden (Malmö Arena). The Annual Report for 2016 is available on AAK's website and will be distributed to shareholders shortly.
Shareholders who wish to participate at the Annual General Meeting must be registered in the share register maintained by Euroclear Sweden AB on Thursday, May 11, 2017. To be eligible to participate in the Annual General Meeting, shareholders with nominee-registered holdings should temporarily re-register their shares in their own names through the agency of their nominees so that they are recorded in the share register in good time before Thursday, May 11, 2017. Notification of attendance should be made to Euroclear Sweden AB by mail or telephone no later than 4 p.m. CET on Thursday, May 11, 2017:
Mail:
AAK AB, c/o Euroclear Sweden AB Box 191, SE-101 23 Stockholm, Sweden (please mark the envelope "Annual General Meeting 2017")
Telephone: +46 8 402 90 45
More information about the Annual General Meeting can be found at www.aak.com.
The Parent Company is a holding company for the AAK Group. Its functions are primarily activities related to the development and administration of the Group.
The Parent Company's invoiced sales during the first quarter of 2017 amounted to SEK 24 million (20). The result for the Parent Company after financial items amounted to negative SEK 7 million (negative 16).
The costs for Group Functions are SEK 3 million lower compared to last year.
Interest-bearing liabilities minus cash and cash equivalents and interest-bearing assets totalled a negative of SEK 1,269 million (negative 1,301 as at December 31, 2016). Investments in intangible and tangible assets amounted to SEK 0 million
(1). The Parent Company's income statement and balance sheet are shown on pages 11–12 .
AAK AB (publ.) is the Parent Company of the AAK Group. The company has prepared its financial reports in accordance with the Annual Accounts Act and RFR 2 Reporting for legal
Malmö, April 20, 2017
Arne Frank Chief Executive Officer and President
This report has not been reviewed by the company's auditors.
Fredrik Nilsson CFO Mobile: +46 708 95 22 21 E-mail: [email protected]
The information is that which AAK AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Act. The information was submitted for publication, through the agency of the contact person set out above, at 11:00 a.m. CET on April 20, 2017.
entities.
Changes in the balance sheet No major changes since year-end.
| Group | Parent | ||||
|---|---|---|---|---|---|
| Q1 | Q1 | Full year | Q1 | Q1 | |
| SEK million | 2017 | 2016 | 2016 | 2017 | 2016 |
| Net sales | 6,677 | 4,963 | 22,057 | 24 | 20 |
| Other operating income | 27 | 24 | 109 | 0 | 0 |
| Total operating income | 6,704 | 4,987 | 22,166 | 24 | 20 |
| Raw materials and supplies | -5,163 | -3,624 | -16,362 | - | - |
| Other external expenses | -529 | -456 | -1,973 | -7 | -10 |
| Cost for remuneration to employees | -459 | -414 | -1,726 | -24 | -24 |
| Amortisation and impairment losses | -122 | -112 | -464 | 0 | 0 |
| Other operating expenses | 0 | 0 | -26 | 0 | 0 |
| Total operating costs | -6,273 | -4,606 | -20,551 | -31 | -34 |
| Operating profit (EBIT) | 431 | 381 | 1,615 | -7 | -14 |
| Interest income | 1 | 1 | 6 | - | - |
| Interest expense | -37 | -33 | -159 | -1 | -2 |
| Other financial items | -5 | -6 | -17 | - | - |
| Total financial net | -41 | -38 | -170 | -1 | -2 |
| Result before tax | 390 | 343 | 1,445 | -8 | -16 |
| Income tax | -115 | -94 | -405 | 1 | 0 |
| Net result | 275 | 249 | 1,040 | -7 | -16 |
| Attributable to non-controlling interests | 1 | 14 | 37 | - | - |
| Attributable to the Parent company's shareholders |
274 | 235 | 1,003 | -7 | -16 |
| Group | Parent | ||||
|---|---|---|---|---|---|
| Q1 | Q1 | Full year | Q1 | Q1 | |
| SEK million | 2017 | 2016 | 2016 | 2017 | 2016 |
| Income for the period | 275 | 249 | 1,040 | -7 | -16 |
| Items that will not be reclassified to profit or loss: |
|||||
| Remeasurements of post employment benefit obligations |
- | - | 5 | - | - |
| - | - | 5 | - | - | |
| Items that may subsequently be reclassified to profit or loss: Translation differences Fair-value changes in cash flow hedges |
-21 - |
-241 6 |
189 23 |
- - |
- - |
| Tax attributable to fair value changes in cash flow hedges |
- | -1 | -5 | - | - |
| -21 | -236 | 207 | - | - | |
| Total comprehensive income for the period | 254 | 13 | 1,252 | -7 | -16 |
| Attributable to non-controlling interests Attributable to the Parent company's shareholders |
2 252 |
11 2 |
36 1,216 |
- -7 |
- -16 |
| Group | Parent | ||||
|---|---|---|---|---|---|
| SEK million | 31.03.2017 | 31.03.2016 | 31.12.2016 | 31.03.2017 | 31.03.2016 |
| Assets | |||||
| Goodwill | 1,682 | 1,529 | 1,686 | - | - |
| Other intangible assets | 356 | 362 | 357 | 4 | 4 |
| Tangible assets | 5,163 | 4,331 | 5,164 | 4 | 1 |
| Financial assets | 37 | 28 | 32 | 5,485 | 5,476 |
| Deferred tax assets | 175 | 118 | 201 | 2 | - |
| Total non-current assets | 7,413 | 6,368 | 7,440 | 5,495 | 5,481 |
| Inventory | 4,945 | 3,606 | 4,850 | - | - |
| Accounts receivables | 3,363 | 2,486 | 3,027 | 31 | 24 |
| Other current receivables | 1,345 | 1,056 | 1,281 | 44 | 179 |
| Cash and cash equivalents | 581 | 414 | 586 | 0 | 0 |
| Total current assets | 10,234 | 7,562 | 9,744 | 75 | 203 |
| Total assets | 17,647 | 13,930 | 17,184 | 5,570 | 5,684 |
| Equity and liabilities | |||||
| Shareholders' equity | 7,774 | 6,599 | 7,522 | 4,235 | 4,573 |
| Non-controlling interests | 56 | 64 | 54 | - | - |
| Total equity including non-controlling | |||||
| interests | 7,830 | 6,663 | 7,576 | 4,235 | 4,573 |
| Liabilities to banks and credit institutions | 3,556 | 2,303 | 2,857 | - | - |
| Pension liabilities Deferred tax liabilities |
126 540 |
131 436 |
134 520 |
8 - |
- - |
| Non-interest-bearing liabilities | 335 | 277 | 320 | - | - |
| Total non-current liabilities | 4,557 | 3,147 | 3,831 | 8 | - |
| Liabilities to banks and credit institutions | 77 | 262 | 217 | - | - |
| Accounts payables | 3,265 | 2,019 | 3,258 | 4 | 7 |
| Other current liabilities | 1,918 | 1,839 | 2,302 | 1,323 | 1,104 |
| Total current liabilities | 5,260 | 4,120 | 5,777 | 1,327 | 1,111 |
| Total equity and liabilities | 17,647 | 13,930 | 17,184 | 5,570 | 5,684 |
No changes have arisen in contingent liabilities.
| SEK million | Total equity capital |
Non controlling interests |
Total equity incl. non-controlling interests |
|---|---|---|---|
| Openings equity January 1, 2017 | 7,522 | 54 | 7,576 |
| Profit for the period Other comprehensive income |
274 -22 |
1 1 |
275 -21 |
| Total comprehensive income | 252 | 2 | 254 |
| Closing equity March 31, 2017 | 7,774 | 56 | 7,830 |
| SEK million | Total equity capital |
Non controlling interests |
Total equity incl. non-controlling interests |
|---|---|---|---|
| Openings equity January 1, 2016 | 6,597 | 53 | 6,650 |
| Profit for the period Other comprehensive income |
235 -233 |
14 -3 |
249 -236 |
| Total comprehensive income | 2 | 11 | 13 |
| Closing equity March 31, 2016 | 6,599 | 64 | 6,663 |
| SEK million | Asset | Liability |
|---|---|---|
| Financial instruments reported in balance sheet March 31, 2017 | ||
| Raw material hedge contracts | 274 | 170 |
| FX hedge contracts | 184 | 46 |
| Total derivatives financial instruments | 458 | 216 |
| Fair value adjustment inventory | 15 | 50 |
| Total financial instruments | 473 | 266 |
| SEK million | Q1 2017 |
Q1 2016 |
Full year 2016 |
|---|---|---|---|
| Operating activities Operating profit |
431 | 381 | 1,615 |
| Depreciation and amortization | 122 | 112 | 464 |
| Other non cash items | -34 | -8 | -37 |
| Cash flow before interest and tax | 519 | 485 | 2,042 |
| Interest paid and received | -46 | -38 | -163 |
| Tax paid | -141 | -83 | -403 |
| Cash flow before changes in working capital | 332 | 364 | 1,476 |
| Changes in inventories | -91 | -69 | -818 |
| Changes in accounts receivables | -341 | -118 | -489 |
| Changes in accounts payables | -4 | -318 | 814 |
| Changes in other working capital items | -304 | 125 | 230 |
| Changes in working capital | -740 | -380 | -263 |
| Cash flow from operating activities | -408 | -16 | 1,213 |
| Investing activities | |||
| Acquisition of intangible an tangible assets | -154 | -193 | -977 |
| Acquisition of operations and shares, net of cash acquired | - | - | -449 |
| Proceeds from sale of property, plan and equipment | 2 | 1 | 5 |
| Cash flow from investing activites | -152 | -192 | -1,421 |
| Cash flow after investing activities | -560 | -208 | -208 |
| Financing activities | |||
| Changes in loans | 554 | 169 | 645 |
| Dividend paid | - | - | -328 |
| Cash flow from financing activites | 554 | 169 | 317 |
| Cash flow for the period | -6 | -39 | 109 |
| Cash and cash equivalents at start of period | 586 | 459 | 459 |
| Exchange rate difference for cash equivalents | 1 | -6 | 18 |
| Cash and cash equivalents at end of period | 581 | 414 | 586 |
| Q1 | Q1 | Full year | |
|---|---|---|---|
| 2017 | 2016 | 2016 | |
| Number of shares, thousand | 42,288 | 42,288 | 42,288 |
| Earnings per share, SEK* | 6,47 | 5.56 | 23.71 |
| Equity per share, SEK | 183.83 | 156.05 | 177.87 |
| Market value on closing date, SEK | 590.00 | 645.00 | 599.50 |
* The calculation of earnings per share is based on weighted average number of outstanding shares.
| 2016 | 2017 | |||||
|---|---|---|---|---|---|---|
| Full | ||||||
| SEK million | Q1 | Q2 | Q3 | Q4 | year | Q1 |
| Food Ingredients | 229 | 238 | 251 | 278 | 996 | 249 |
| Chocolate & Confectionery Fats | 159 | 146 | 190 | 169 | 664 | 196 |
| Technical Products & Feed | 29 | 23 | 24 | 24 | 100 | 19 |
| Group Functions | -36 | -39 | -34 | -36 | -145 | -33 |
| Total AAK Group excl. non-recurring items | 381 | 368 | 431 | 435 | 1,615 | 431 |
| Acquisition costs and non-recurring items | - | - | -15 | 15 | - | - |
| Total operating profit AAK Group | 381 | 368 | 416 | 450 | 1,615 | 431 |
| Financial net | -38 | -39 | -47 | -46 | -170 | -41 |
| Result before tax | 343 | 329 | 369 | 404 | 1,445 | 390 |
| Q1 | Q1 | Full year | |
|---|---|---|---|
| % | 2017 | 2016 | 2016 |
| Food Ingredients | |||
| Organic volume growth | 2 | -3 | -2 |
| Acquisitions/divestments | 8 | 7 | 7 |
| Volume growth as reported | 10 | 4 | 5 |
| Chocolate & Confectionery Fats | |||
| Organic volume growth | 17 | 11 | 13 |
| Acquisitions/divestments | 0 | 6 | 5 |
| Volume growth as reported | 17 | 17 | 18 |
| Technical Products & Feed | |||
| Organic volume growth | 4 | 0 | 4 |
| Acquisitions/divestments | 0 | 0 | 0 |
| Volume growth as reported | 4 | 0 | 4 |
| AAK Group | |||
| Organic volume growth | 5 | 0 | 2 |
| Acquisitions/divestments | 5 | 5 | 5 |
| Volume growth as reported | 10 | 5 | 7 |
| Q1 | Q1 | Full year | |
|---|---|---|---|
| SEK million | 2017 | 2016 | 2016 |
| Operating profit (EBIT) | 431 | 381 | 1,615 |
| Add back depreciation and amortization | 122 | 112 | 464 |
| EBITDA | 553 | 493 | 2,079 |
| R12M | Full year | ||
|---|---|---|---|
| SEK million | 31.03.2017 | 2017 | 2016 |
| Total assets | 17,647 | 15,820 | 17,184 |
| Cash and cash equivalents | -581 | -494 | -586 |
| Financial assets | -12 | -12 | -3 |
| Accounts payables | -3,265 | -2,678 | -3,258 |
| Other non-interest-bearing liabilities | -1,913 | -1,929 | -2,293 |
| Capital employed | 11,876 | 10,707 | 11,044 |
| Operating profit (Rolling 12 months) | 1,665 | 1,665 | 1,615 |
| Return on Capital Employed (ROCE), % | 14.0 | 15.6 | 14.6 |
| Full year | ||
|---|---|---|
| SEK million | 31.03.2017 | 2016 |
| Inventory | 4,945 | 4,850 |
| Accounts receivables | 3,363 | 3,027 |
| Other current receivables, non-interest-bearing | 1,333 | 1,278 |
| Accounts payables | -3,265 | -3,258 |
| Other current liabilities, non-interest-bearing | -1,913 | -2,293 |
| Working capital | 4,463 | 3,604 |
| Full year | ||
|---|---|---|
| SEK million | 31.03.2017 | 2016 |
| Current interest-bearing receivables | 12 | 3 |
| Cash and cash equivalents | 581 | 586 |
| Pension liabilities | -126 | -134 |
| Non-current liabilities to banks and credit institutions | -3,557 | -2,857 |
| Current liabilities to banks and credit institutions | -77 | -217 |
| Other interest-bearing liabilities | -1 | -1 |
| Net debt | -3,168 | -2,620 |
| SEK million | 31.03.2017 | Full year 2016 |
|---|---|---|
| Shareholders' equity | 7,774 | 7,522 |
| Non-controlling interests | 56 | 54 |
| Total equity including non-controlling interests | 7,830 | 7,576 |
| Total assets | 17,647 | 17,184 |
| Equity to assets ratio, % | 44.4 | 44.1 |
For information regarding cocoa and cocoa butter please refer to information at www.icco.org
AAK will host a conference call on April 20, 2017 at 1 p.m. CET. The conference call can be accessed via our home page, www.aak.com.
The annual and quarterly reports are also published on www.aak.com.
The Annual General Meeting will be held on May 17, 2017.
The interim report for the second quarter 2017 will be published on July 17, 2017.
The interim report for the third quarter 2017 will be published on October 26, 2017.
The fourth quarter and year-end report for 2017 will be published on February 5, 2018.
This report contains forward-looking statements. Such statements are subject to risks and uncertainties as 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.
The report has been translated from Swedish. The Swedish text shall govern for all purposes and prevail in the event of any discrepancy between the versions.
Fredrik Nilsson, CFO Phone: +46 40 627 83 34 Mobile: +46 708 95 22 21 E-mail: [email protected]
We develop and provide value-adding vegetable oil solutions in close collaboration with our customers, enabling them to achieve long lasting business results.
We do so through our in-depth expertise in oils & fats within food applications, working with a wide range of raw materials and broad process capabilities.
Through our unique co-development approach we bring together our customers' skills and know-how with our capabilities and mindset. By doing so, we solve customer specific needs across many industries – Chocolate & Confectionery, Bakery, Dairy, Special Nutrition, Foodservice, Personal Care, and more.
AAK's proven expertise is based on more than 140 years of experience within oils & fats. With our headquarters in Malmö, Sweden, 20 production facilities and customization plants, and sales offices in more than 25 countries, our more than 3,000 employees are dedicated to providing innovative value-adding solutions to our customers.
So no matter where you are in the world, we are ready to help you achieve long lasting results.
We are AAK – The Co-Development Company.
AAK AB (publ.)
Skrivaregatan 9, SE-215 32 Malmö, Sweden Phone: + 46 40 627 83 00, Reg. No. 556669-2850, www.aak.com
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