Quarterly Report • Feb 2, 2023
Quarterly Report
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Fourth quarter and year-end report 2022
AAK reported a second-quarter IAC cost of SEK 350 million related to exiting the Russian market.
Profit for the quarter totaled SEK 517 million (480).
| Q4 2022 |
Q4 2021 |
Δ% | 12M 2022 |
12M 2021 |
Δ% | |
|---|---|---|---|---|---|---|
| Volumes, '000 MT | 571 | 610 | -6 | 2,259 | 2,312 | -2 |
| Operating profit, SEK million | 778 | 659 | +18 | 2,538 | 2,089 | +21 |
| Operating profit, excluding IAC, SEK million | 778 | 659 | +18 | 2,888 | 2,393 | +21 |
| Operating profit per kilo, SEK | 1.36 | 1.08 | +26 | 1.12 | 0.90 | +24 |
| Operating profit per kilo, excluding IAC, SEK | 1.36 | 1.08 | +26 | 1.28 | 1.04 | +23 |
| Profit for the period, SEK million | 517 | 480 | +8 | 1,780 | 1,447 | +23 |
| Profit for the period, excluding IAC, SEK million | 517 | 480 | +8 | 2,099 | 1,733 | +21 |
| Earnings per share, SEK | 1.98 | 1.84 | +8 | 6.84 | 5.59 | +22 |
| Earnings per share, excluding IAC, SEK | 1.98 | 1.84 | +8 | 8.07 | 6.71 | +20 |
| Return on Capital Employed (R12M), percent | 14.5 | 15.6 | -7 | 14.5 | 15.6 | -7 |
IAC affecting 2022 relates to exiting the Russian market. For 2021, the IAC relates to the optimization of the company's European Bakery business.
I would like to start by expressing my sincere gratitude to our employees for their hard work and dedication to AAK. Your efforts lay the foundation for our success, and I am confident that we will continue to thrive as a result of your commitment.
As we enter a new year, I am excited to reflect on our progress and the opportunities and challenges that lie ahead. 2022 was a solid year. With 21 percent operating profit growth and an improved operating profit per kilo, we delivered on our target of having an average EBIT growth of ∼10 percent. Adjusting for the positive effect from currencies and items affecting comparability, operating profit grew 9 percent compared to 2021, despite a negative impact due to our exit out of Russia. This achievement demonstrates our solid foundation as a multi-oil ingredient house, especially when considering the dynamic and volatile environment we have had during 2022.
In the fourth quarter, operating profit grew 18 percent compared to the corresponding quarter last year, driven by a strong margin expansion, compensating for the somewhat soft year-on-year volume development in Food Ingredients and Chocolate & Confectionery Fats. Adjusting for the positive currency effect, operating profit grew 14 percent compared to the fourth quarter of 2021.
Fourth-quarter volumes in Food Ingredients declined by 7 percent year-on-year, largely due to the optimization program in Bakery as well as the expected effects of the controlled exit out of the Russian market. As a result of the optimization efforts, operating profit increased by 33 percent at fixed foreign exchange rates, driven by strong margin expansion.
Chocolate & Confectionery Fats reported a solid quarter despite volumes declining 10 percent due to the exit out of Russia. Excluding Russia, volumes grew 1 percent in the fourth quarter compared to the same period last year. Despite declining volumes, operating profit at fixed foreign exchange rates grew 1 percent year-on-year, driven by a strong margin improvement.
Technical Products & Feed reported another strong quarter, with operating profit at fixed foreign exchange rates up 20 percent, driven by higher volumes in our Feed business.
We are committed to driving innovation and growth while maintaining a strong focus on sustainability and social responsibility. Looking ahead, we have set an ambitious aspiration for ourselves as an organization - to double our operating profit per kilo by 2030.
The focus on expanding margins will be supported by continued volume growth, where we strive to outgrow the market in our prioritized specialty markets, and we will do so while being recognized for our positive impact.
We continue to drive sustainability progress in our operations and supply chain, with one of the main objectives being
verified deforestation- and conversion-free palm and soy by 2025. To reach 100 percent by 2025, we are strengthening existing partnerships with suppliers and continuing satellite monitoring of our global palm oil supply base.
As we close out the year, I am pleased to report that we have achieved a number of significant milestones and made progress toward our long-term aspiration.
Our financial performance has been strong, with operating profit exceeding expectations. We have also made progress in expanding our regional presence and strengthening our relationships with key partners, with a good example being the recent acquisition of Arani Agro in India.
In addition to our financial performance, we have made significant progress on our sustainability and social responsibility initiatives. We have actively managed our carbon emissions, increased our use of renewable energy sources, and implemented a number of initiatives to improve the well-being of our employees and the communities in which we operate.
As we look ahead, I am excited about the opportunities that we have and we are well-positioned to continue growing and expanding our business. Thus, we remain prudently optimistic and fully committed to Making Better Happen™.
Johan Westman, President and CEO
Volumes totaled 571,000 MT (610,000), a decrease by 6 percent compared to last year. Excluding Russia, the volumes decreased by 3 percent.
Sales reached SEK 13,317 million (10,441), an increase by 28 percent, due to higher raw material prices and a positive currency translation impact of SEK 1,193 million.
Operating profit reached SEK 778 million (659), an increase by 18 percent compared to the corresponding quarter in 2021. The exit from the Russian market impacted the quarter negatively by SEK 40 million compared to the corresponding quarter last year.
The currency translation impact was positive SEK 24 million, of which SEK 17 million related to Food Ingredients and SEK 7 million to Chocolate & Confectionery Fats. Operating profit at fixed foreign exchange rates increased by 14 percent.
Operating profit per kilo reached SEK 1.36 (1.08), an increase of 26 percent. The currency translation impact was positive SEK 0.04. At fixed foreign exchange rates operating profit per kilo increased by 22 percent.
Net financial cost totaled SEK 145 million (26). The financial cost increased due to increased financing of working capital, increased interest rates in general, and higher borrowing in high-interest-rate countries. Reported tax costs correspond to an average tax rate of 18 percent (24), due to nonrecurring items in the fourth quarter. The underlying tax rate continued to be 24 percent.
Earnings per share equaled SEK 1.98 (1.84).
Operating cash flow, including changes in working capital, amounted to positive SEK 1,062 million (positive 239). Cash flow from working capital amounted to positive SEK 661 million (negative 389). There was a positive cash flow from inventory and accounts receivables in the quarter due to the impact from lower raw material prices. Cash flow from accounts payables was negative, mainly driven by lower raw material prices and timing in raw material purchases.
Cash outflow from investment activities amounted to SEK 488 million (215), of which SEK 14 million (0) was related to acquisitions of operations. Capital expenditure was mainly related to maintenance investments and capacity increases. Raw material prices decreased year-on-year at the beginning of the third quarter of 2022, and based on the duration of our contract portfolio, there is a time lag of roughly 6–9 months until we see the cash flow effect from the price volatility. During the last part of the fourth quarter, working capital improved and the positive impact on working capital is expected to continue during the first half of 2023.
Calculated on a rolling 12-month basis, Return on Capital Employed (ROCE) was 14.5 percent (15.6 on December 31, 2021).
The equity/assets ratio measured 44 percent (44 percent on December 31, 2021). Net debt on December 31, 2022, totaled SEK 5,707 million (SEK 3,817 million at December 31, 2021). Net debt/EBITDA measured 1.71 (1.25 as of December 31, 2021).
On December 31, 2022, the Group had total credit facilities of SEK 9,806 million (7,715 as of December 31, 2021), SEK 8,366 million (6,374 as of December 31, 2021) of which in committed credit facilities. Unused committed credit facilities at December 31, 2022, totaled SEK 4,295 million (4,248 as of December 31, 2021). Noncommitted credit facilities totaled SEK 1,440 million (1,341 as of December 31, 2021), SEK 976 million (511 as of December 31, 2021) of which were unused.
To support our updated strategy and long-term aspiration, we have sharpened the organizational structure of AAK. The updated organization is designed to create stronger accountability and an even more customer-centric organization with the right pre-requisitions to deliver on our strategy. Historically, AAK has had six functions and five regions, represented by eleven Executive Committee members. Going forward, there will be four functions and three regions. Consequently, the new Executive Committee consists of eight members, including the CEO. The members of the Executive Committee are; Johan Westman (President and CEO), Tomas Bergendahl (CFO), Sten Estrup (President AMEA & People), Susanne Jaspers (President Europe & Strategic Accounts), Octavio Díaz de León (President Americas), Tim Stephenson (President Global Sourcing & Trading and Sustainability), David Smith (President Global Operations) and Niall Sands (President Commercial Development and Innovation). The changes are effective as of January 1st, 2023 and have no impact on AAK's financials or reporting.
In addition to a business and financial update, we presented our updated strategy and long-term aspiration at the Capital Market Day on November 29, 2022, in Stockholm. The major updates in this year's strategy review include the following 2030 aspiration:
All in all, it was an exciting day with a positive response from investors, analysts, and media.
In November 2022, we strengthened our position in the Indian market via the acquisition of 100 percent of the shares in Arani Agro Oil Industries Ltd. The acquisition gives AAK a platform for serving a high concentration of strategic customers located in southeast India, particularly focused on Chocolate & Confectionery Fats, Nutrition, Bakery, and Dairy. Over the coming years, we will invest an estimated total of SEK 200–300 million, including the acquisition consideration, to increase capacity and improve efficiency in the acquired production facility. The transaction closed in January 2023 and will be included in AAK's financials from the first quarter of 2023 and onwards.
| Operating profit |
Q4 2022 |
Q4 2021 |
Δ % | 12M 2022 |
12M 2021 |
Δ % | |
|---|---|---|---|---|---|---|---|
| +38% | Volumes, '000 MT | 361 | 389 | -7 | 1,433 | 1,476 | -3 |
| Net sales, SEK million | 8,863 | 6,781 | +31 | 32,661 | 23,245 | +41 | |
| Operating profit per kilo |
Operating profit, SEK million | 465 | 337 | +38 | 1,716 | 1,380 | +24 |
| +48% | Operating profit per kilo, SEK | 1.29 | 0.87 | +48 | 1.20 | 0.93 | +29 |
AAK
In the fourth quarter, volumes in Food Ingredients decreased by 7 percent compared to the same period last year. The decline was largely due to the optimization program in Bakery as well as the controlled withdrawal from the Russian market. Adjusting for Russia, fourth-quarter volumes in Food Ingredients declined by 6 percent.
In Bakery, volumes declined, mainly driven by the continued effort to optimize the business in Europe, with a continued prioritization of speciality and semi-speciality solutions. In addition, volumes were negatively affected by our exit from the Russian market.
Dairy volumes were flat in the quarter compared to the corresponding period of last year. The performance was mixed across the regions with solid growth in Europe and Asia, while growth in the Americas declined year-on-year.
The volume development for speciality fat systems for Plantbased Foods was soft and declined compared to the fourth quarter of 2021. The decline was driven by plant-based meat solutions, which is a continuation of a slowdown since late last year. Plant-based Dairy solutions increased slightly, mainly in North America.
Special Nutrition volumes were down, with a decline in semispeciality solutions in the Infant Nutrition subsegment, primarily in Asia. Our high-end solutions were stable, with growth in Europe offset by a decline in Asia.
In Foodservice, volumes were down, mainly driven by North America and Europe. Previously communicated supply chain issues in the UK remain.
Sales reached SEK 8,863 million (6,781), an increase by 31 percent or SEK 2,082 million. The increase is related to price adjustments due to increased raw material prices and a positive currency translation impact of SEK 912 million.
Operating profit increased by 38 percent to SEK 465 million (337). The currency translation impact was positive and amounted to SEK 17 million. At fixed foreign exchange rates, operating profit increased by 33 percent.
The strong operating profit growth for the business area was broad-based and led by improved profitability in Special Nutrition, driven by favorable product and geographical mix, as well as declining raw material prices to some extent. Bakery and Dairy also performed well, driven by our dedicated work with contract and product portfolio management.
Operating profit per kilo increased to SEK 1.29 (0.87). The currency translation impact was positive SEK 0.05. At fixed foreign exchange rates, operating profit per kilo grew 43 percent.
* Operating profit and operating profit per kilo are excluding items affecting comparability.
6
| Operating profit |
Q4 2022 |
Q4 2021 |
Δ % | 12M 2022 |
12M 2021 |
Δ % | |
|---|---|---|---|---|---|---|---|
| +3% | Volumes, '000 MT | 125 | 139 | -10 | 521 | 519 | +0 |
| Net sales, SEK million | 3,672 | 3,046 | +21 | 14,813 | 10,116 | +46 | |
| Operating profit per kilo |
Operating profit, SEK million | 308 | 299 | +3 | 1,092 | 971 | +12 |
| +14% | Operating profit per kilo, SEK | 2.46 | 2.15 | +14 | 2.10 | 1.87 | +12 |
Fourth-quarter volumes decreased by 10 percent due to our withdrawal from the Russian market. Excluding Russia, volumes increased by 1 percent, driven by our successful codevelopment approach with a continued strong demand for speciality as well as semi-speciality solutions. The performance was broad-based with all regions performing well, except for a slight decline in North America and a decrease in Europe due to exiting the Russian market. Excluding Russia, volumes increased slightly in Europe, and we continue our efforts to gradually replace the lost Russian volumes with new opportunities in other geographies.
Net sales for the business area reached SEK 3,672 million (3,046), a 21 percent increase. This growth was related to volume growth, price adjustments due to higher raw material prices, and a positive currency translation impact of SEK 281 million.
Operating profit
Operating profit reached SEK 308 million (299), an increase by 3 percent compared to the corresponding quarter last year. The currency translation impact was positive SEK 7 million. At fixed foreign exchange rates, operating profit increased by 1 percent.
Our decision to exit the Russian market impacted the quarter negatively by SEK 40 million compared to last year. The impact in 2022 on operating profit totaled approximately SEK 110 million. Excluding this impact, the business area showed strong performance in a continued competitive market.
Operating profit per kilo increased and totaled SEK 2.46 (2.15). The currency translation impact was positive SEK 0.06. At fixed foreign exchange rates, operating profit per kilo increased by 12 percent.
* Operating profit and operating profit per kilo are excluding items affecting comparability.
| Operating profit |
Q4 2022 |
Q4 2021 |
Δ % | 12M 2022 |
12M 2021 |
Δ % | |
|---|---|---|---|---|---|---|---|
| +20% | Volumes, '000 MT | 85 | 82 | +4 | 305 | 317 | -4 |
| Net sales, SEK million | 782 | 614 | +27 | 2,951 | 2,091 | +41 | |
| Operating profit per kilo |
Operating profit, SEK million | 100 | 83 | +20 | 303 | 214 | +42 |
| +17% | Operating profit per kilo, SEK | 1.18 | 1.01 | +17 | 0.99 | 0.68 | +46 |
Volumes in the fourth quarter increased by 4 percent compared to the fourth quarter of 2021. The increase was driven by strong performance in our Feed business.
In Technical products, volumes decreased, driven by natural ingredients and internal use of biofuels to partly offset the cost of high energy prices.
Net sales for the business area increased by SEK 168 million, to SEK 782 million.
Technical Products & Feed - Operating profit
Operating profit reached SEK 100 million (83), up 20 percent compared to last year. This growth was driven by significant improvement of profitability in Natural Ingredients and higher volumes in Feed through our dedicated work with contract and product portfolio management, supported by operational improvements and favorable market conditions in our Feed business. Our crush margin remained stable in the quarter.
The business area reported an operating profit per kilo of SEK 1.18 (1.01), an increase of 17 percent.
Rolling 12 months, SEK million 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 Quarter, SEK/kilo
Technical Products & Feed - Operating profit per kilo
* Operating profit and operating profit per kilo are excluding items affecting comparability.
Volumes totaled 2,259,000 MT (2,312,000), a decrease by 2 percent compared to last year. Excluding Russia, the volumes were flat.
Sales reached SEK 50,425 million (35,452), an increase by 42 percent, due to higher raw material prices and a positive currency translation impact of SEK 3,472 million.
Operating profit, excluding items affecting comparability, reached SEK 2,888 million (2,393), an increase by 21 percent compared to 2021, mainly driven by improved profitability in Special Nutrition and Bakery, as well as our Feed business and Natural Ingredients. The exit from the Russian market impacted the year negatively by approximately SEK 110 million compared to 2021.
The currency translation impact was positive SEK 287 million, of which SEK 173 million was related to Food Ingredients and SEK 114 million to Chocolate & Confectionery Fats. Operating profit at fixed foreign exchange rates, excluding items affecting comparability, increased by 9 percent.
Operating profit per kilo, excluding items affecting comparability, reached SEK 1.28 (1.04), an increase of 23 percent. The currency translation impact was positive SEK 0.13 At fixed foreign exchange rates, excluding items affecting comparability, operating profit per kilo increased by 11 percent.
At the end of April, we announced the controlled exit from our operations and investments in Russia. The exit has resulted in a nonrecurring cost of SEK 350 million, affecting the income statement in the second quarter. As previously communicated, AAK Margaron in Russia was divested during the second quarter.
Net financial cost totaled SEK 188 million (102). The financial cost increased due to increased financing of working capital, higher interest rates in general, and higher borrowing in highinterest rate countries. Reported tax costs correspond to an average tax rate of 24 percent (27). The expenses reported as items affecting comparability could not be utilized as a tax credit in full, offset by nonrecurring items reported in the fourth quarter. The underlying tax rate remains at 24 percent.
Earnings per share equaled SEK 6.84 (5.59), impacted by our decision to exit Russia and by the optimization of the European Bakery business. Excluding IAC, earnings per share equaled SEK 8.07 (6.71).
Operating cash flow, including changes in working capital amounted to negative SEK 73 million (positive 508). Cash flow from working capital amounted to negative SEK 2,710 million (negative 2,149). Inventory and accounts receivables had a negative cash flow effect in the period due to high raw material prices. Cash flow from accounts payables was negative, driven by one-off effects due to changes in a few contractual payment terms and sourcing patterns, lower raw material prices, and timing in raw material purchases.
Cash outflow from investment activities amounted to SEK 1,233 million (650), of which SEK 14 million (31) was related to acquisitions of operations. Capital expenditure was mainly related to maintenance investments and capacity increases.
Raw material prices increased during the first part of the year and decreased at the beginning of the third quarter of 2022 compared to 2021. Based on the duration of our contract portfolio, there is a time lag of 6–9 months until we see the cash flow effect from the price volatility. During the last part of the fourth quarter, working capital improved and the positive impact on working capital is expected to continue during the first half of 2023.
The average number of employees on December 31, 2022, was 3,962 (4,013 at December 31, 2021).
No significant changes have taken place in relations or transactions with related parties since 2021.
AAK's operations are constantly exposed to risks, threats, and external factors with an impact on the company. 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's long-term risk exposure is assumed not to deviate from the inherent exposure associated with AAK's ongoing business operations.
The war in Ukraine is affecting the global economy and adding to already high inflationary pressures and volatility, contributing to a demanding macroeconomic climate. The costs for transports, logistics and energy remained high during the quarter.
Since the publication of the Annual Report 2021, AAK's Board of Directors and Executive Committee have reviewed the development of significant risks and uncertainties and can confirm that there have not been any other changes than what has been commented on with respect to market developments during 2022.
For a more in-depth analysis of risks, please refer to AAK's Annual Report.
This interim report is prepared in accordance with IAS 34, Interim Financial Reporting, and applicable rules in the Swedish Annual Accounts Act. During the second quarter, Turkey was to be considered a hyperinflationary economy, and AAK applied Reporting in hyperinflationary economies (IAS 29). This decision resulted in a financial expense of SEK 17 million, affecting the income statement for the full year and an adjustment of the opening equity January 1, 2022, of SEK 41 million. Other accounting principles correspond to the principles applied in the preparation of the Annual Report 2021.
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 21–22.
For definitions, please see our Annual Report.
The Annual General Meeting will be held on May 4, 2023, in Malmö, Sweden. The Annual Report for 2022 will be available at www.aak.com from April 5, 2023.
At the Annual General Meeting 2022, Märta Schörling Andreen (Melker Schörling AB), Henrik Didner (Didner & Gerge Fonder), Elisabet Jamal Bergström (SEB Investment Management) and William McKechnie (Alecta) were elected members of the Nomination Committee in respect of the Annual General Meeting 2023. Märta Schörling Andreen was elected chairman of the Nomination Committee.
The Board of Directors proposes that a dividend of SEK 2.75 (2.50) per share be paid for the financial year 2022. The proposed record date for the dividend is May 8, 2023. It is expected that the dividend will reach the shareholders on May 11, 2023.
No events to be reported.
AAK AB (publ.), corporate identity number 556669-2850, 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 resulted in negative SEK 63 million (1,002). Interest-bearing liabilities minus cash and cash equivalents and interestbearing assets totaled SEK 3,443 million (1,610 as of December 31, 2021). Investments in intangible and tangible assets were SEK 1 million (1).
The Parent Company's balance sheet and income statement are shown on pages 23–24. Since year-end, there are no major changes in the Parent Company's balance sheet.
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 2021.
Malmö, February 2, 2023
Georg Brunstam Märta Schörling Andreen Gun Nilsson Chairman of the Board Board member Board member
Patrik Andersson Marianne Kirkegaard Board member Board member
Mikael Myhre (deputy) Lena Nilsson Trade union representative Trade union representative
Carl Ahlgren Head of IR and Corporate Communications Mobile: +46 706 81 07 34 E-mail: [email protected]
This information is information that AAK AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:30 CET on February 2, 2023.
AAK AB (publ.) Corp. Id. 556669-2850
We have reviewed the condensed interim financial information (interim report) of AAK AB (publ.) as of December 31, 2022, 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.
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.
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, February 2, 2023
KPMG AB
Jonas Nihlberg Authorized Public Accountant
| SEK million | Q4 2022 |
Q4 2021 |
12M 2022 |
12M 2021 |
|---|---|---|---|---|
| Net sales | 13,317 | 10,441 | 50,425 | 35,452 |
| Other operating income | 34 | 49 | 149 | 186 |
| Total operating income | 13,351 | 10,490 | 50,574 | 35,638 |
| Change in inventories of finished goods and work in progress | 143 | 322 | 201 | 356 |
| Raw materials and consumables | -10,547 | -8,329 | -39,777 | -27,219 |
| Goods for resale | -234 | -251 | -1,085 | -834 |
| Other external expenses | -894 | -720 | -3,401 | -2,346 |
| Cost for remuneration to employees | -838 | -661 | -2,958 | -2,527 |
| Depreciation, amortization, and impairment losses | -209 | -182 | -799 | -958 |
| Other operating expenses | 6 | -10 | -217 | -21 |
| Total operating expenses | -12,573 | -9,831 | -48,036 | -33,549 |
| Operating profit (EBIT) | 778 | 659 | 2,538 | 2,089 |
| Financial income | -51 | 5 | 69 | 19 |
| Financial expense | -94 | -31 | -257 | -121 |
| Total financial net | -145 | -26 | -188 | -102 |
| Profit before tax | 633 | 633 | 2,350 | 1,987 |
| Income tax | -116 | -153 | -570 | -540 |
| Profit for the period | 517 | 480 | 1,780 | 1,447 |
| Attributable to non-controlling interests | 2 | 4 | 10 | 10 |
| Attributable to the Parent Company's shareholders | 515 | 476 | 1,770 | 1,437 |
| Earnings per share before dilution, SEK1) | 1.98 | 1.84 | 6.84 | 5.59 |
| Earnings per share after dilution, SEK2) | 1.98 | 1.84 | 6.84 | 5.58 |
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.
| SEK million | Q4 2022 |
Q4 2021 |
12M 2022 |
12M 2021 |
|---|---|---|---|---|
| Profit for the period | 517 | 480 | 1,780 | 1,447 |
| Items that will not be reclassified to profit or loss: | ||||
| Remeasurements of post-employment benefit obligations | 11 | -9 | 149 | 12 |
| 11 | -9 | 149 | 12 | |
| Items that may subsequently be reclassified to profit or loss: | ||||
| Translation differences | -659 | 214 | 1,460 | 682 |
| Fair-value changes in cash flow hedges | -1 | 2 | 20 | 5 |
| Tax related to fair-value changes in cash flow hedges | 0 | 0 | -4 | -1 |
| -660 | 216 | 1,476 | 686 | |
| Total comprehensive income for the period | -132 | 687 | 3,405 | 2,145 |
| Attributable to non-controlling interests | 2 | 3 | 16 | 9 |
| Attributable to the Parent Company's shareholders | -134 | 684 | 3,389 | 2,136 |
| SEK million | 31.12.2022 | 31.12.2021 |
|---|---|---|
| Assets | ||
| Goodwill | 2,538 | 2,270 |
| Other intangible assets | 293 | 307 |
| Property, plant and equipment | 6,944 | 5,720 |
| Right-of-use assets Shares in associated companies |
685 32 |
595 16 |
| Financial assets | 67 | 43 |
| Deferred tax assets | 327 | 179 |
| Total non-current assets | 10,886 | 9,130 |
| Inventory | 11,174 | 9,054 |
| Accounts receivables | 6,635 | 5,132 |
| Current receivables | 3,780 | 2,849 |
| Cash and cash equivalents | 1,515 | 1,001 |
| Total current assets | 23,104 | 18,036 |
| Total assets | 33,990 | 27,166 |
| Equity and liabilities | ||
| Shareholders' equity | 15,036 | 11,783 |
| Non-controlling interests | 47 | 48 |
| Total equity including non-controlling interests | 15,083 | 11,831 |
| Liabilities to banks and credit institutions | 3,526 | 1,611 |
| Pension liabilities | 58 | 271 |
| Lease liabilities | 562 | 493 |
| Deferred tax liabilities | 553 | 444 |
| Other non-current liabilities | 273 | 361 |
| Total non-current liabilities | 4,972 | 3,180 |
| Liabilities to banks and credit institutions | 2,997 | 2,333 |
| Lease liabilities | 162 | 128 |
| Accounts payables | 5,337 | 5,696 |
| Other current liabilities | 5,439 | 3,998 |
| Total current liabilities | 13,935 | 12,155 |
| Total equity and liabilities | 33,990 | 27,166 |
| SEK million | Shareholders' equity |
Non-controlling interests |
Total equity incl. non-controlling interests |
|---|---|---|---|
| Opening balance January 1, 2022 | 11,783 | 48 | 11,831 |
| Adjustment Opening balance IAS29 | 41 | - | 41 |
| Adjusted Opening balance January 1, 2022 | 11,824 | 48 | 11,872 |
| Profit for the period | 1,770 | 10 | 1,780 |
| Other comprehensive income | 1,619 | 6 | 1,625 |
| Total comprehensive income | 3,389 | 16 | 3,405 |
| New issue of shares | 147 | - | 147 |
| Subscription warrants | 80 | - | 80 |
| Exit Russia | 237 | -17 | 220 |
| Liquidation | 5 | - | 5 |
| Dividend | -646 | - | -646 |
| Closing balance December 31, 2022 | 15,036 | 47 | 15,083 |
| SEK million | Shareholders' equity |
Non-controlling interests |
Total equity incl. non-controlling interests |
|---|---|---|---|
| Opening balance January 1, 2021 | 9,699 | 39 | 9,738 |
| Profit for the period | 1,437 | 10 | 1,447 |
| Other comprehensive income | 699 | -1 | 698 |
| Total comprehensive income | 2,136 | 9 | 2,145 |
| New issue of shares | 434 | - | 434 |
| Non-controlling interest | 104 | 0 | 104 |
| Dividend | -590 | - | -590 |
| Closing balance December 31, 2021 | 11,783 | 48 | 11,831 |
| SEK million | Q4 2022 |
Q4 2021 |
12M 2022 |
12M 2021 |
|---|---|---|---|---|
| Operating activities | ||||
| Operating profit | 778 | 659 | 2,538 | 2,089 |
| Depreciation and amortization | 209 | 182 | 799 | 958 |
| Adjustment for other items not included in cash flow | -276 | 6 | 63 | 204 |
| Interest paid and received | -135 | -20 | -146 | -73 |
| Tax paid | -175 | -199 | -617 | -521 |
| Cash flow before changes in working capital | 401 | 628 | 2,637 | 2,657 |
| Changes in inventory | 536 | -724 | -1,427 | -2,181 |
| Changes in accounts receivables | 357 | -382 | -1,149 | -1,710 |
| Changes in accounts payables | -640 | 918 | -812 | 1,793 |
| Changes in other working capital items | 408 | -201 | 678 | -51 |
| Changes in working capital | 661 | -389 | -2,710 | -2,149 |
| Cash flow from operating activities | 1,062 | 239 | -73 | 508 |
| Investing activities | ||||
| Acquisition of intangible assets and property, plant and equipment |
-480 | -215 | -1,226 | -619 |
| Acquisition of operations and shares, net of cash acquired | -14 | - | -14 | -31 |
| Proceeds from sale of property, plant and equipment | 6 | - | 7 | 0 |
| Cash flow from investing activities | -488 | -215 | -1,233 | -650 |
| Financing activities | ||||
| Changes in loans | -333 | 21 | 2,364 | 242 |
| Amortization of lease liabilities | -43 | -34 | -152 | -151 |
| New issue of shares | - | 2 | 147 | 434 |
| Subscription warrants | - | - | 80 | - |
| Dividend paid | - | - | -646 | -590 |
| Cash flow from financing activities | -376 | -11 | 1,793 | -65 |
| Cash flow for the period | 198 | 13 | 487 | -207 |
| Cash and cash equivalents at start of period | 1,410 | 999 | 1,001 | 1,200 |
| Exchange rate difference for cash equivalents | -93 | -11 | 27 | 8 |
| Cash and cash equivalents at end of period | 1,515 | 1,001 | 1,515 | 1,001 |
| SEK million (unless otherwise stated) | Q4 2022 |
Q4 2021 |
Δ % | 12M 2022 |
12M 2021 |
Δ % |
|---|---|---|---|---|---|---|
| Income statement | ||||||
| Volumes, '000 MT | 571 | 610 | -6 | 2,259 | 2,312 | -2 |
| Operating profit | 778 | 659 | +18 | 2,538 | 2,089 | +21 |
| Operating profit excluding IAC | 778 | 659 | +18 | 2,888 | 2,393 | +21 |
| Profit for the period | 517 | 480 | +8 | 1,780 | 1,447 | +23 |
| Profit for the period excluding IAC | 517 | 480 | +8 | 2,099 | 1,733 | +21 |
| Financial position | ||||||
| Total assets | 33,990 | 27,166 | +25 | 33,990 | 27,166 | +25 |
| Equity | 15,083 | 11,831 | +27 | 15,083 | 11,831 | +27 |
| Net working capital | 10,747 | 7,327 | +47 | 10,747 | 7,327 | +47 |
| Net debt | 5,707 | 3,817 | +50 | 5,707 | 3,817 | +50 |
| Cash flow | ||||||
| Cash flow from operating activities | 1,062 | 239 | - | -73 | 508 | - |
| Cash flow from investing activities | -488 | -215 | - | -1,233 | -650 | - |
| Share data | ||||||
| Number of shares, thousand | 259,559 | 258,501 | +1 | 259,559 | 258,501 | +1 |
| Earnings per share before dilution, SEK1) | 1.98 | 1.84 | +8 | 6.84 | 5.59 | +22 |
| Earnings per share after dilution, SEK2) | 1.98 | 1.84 | +8 | 6.84 | 5.58 | +23 |
| Equity per share, SEK | 57.93 | 45.58 | +27 | 57.93 | 45.58 | +27 |
| Market value on closing date, SEK | 177.85 | 195.30 | -9 | 177.85 | 195.30 | -9 |
| Other key ratios | ||||||
| Volume growth, percent | -6 | +5 | - | -2 | +5 | - |
| Operating profit per kilo, SEK | 1.36 | 1.08 | +26 | 1.12 | 0.90 | +24 |
| Operating profit per kilo excluding IAC, SEK | 1.36 | 1.08 | +26 | 1.28 | 1.04 | +23 |
| Return on Capital Employed (R12 months), percent | 14.5 | 15.6 | -7 | 14.5 | 15.6 | -7 |
| Net debt / EBITDA, multiple | 1.71 | 1.25 | +37 | 1.71 | 1.25 | +37 |
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.
| 2021 | 2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million | Q1 | Q2 | Q3 | Q4 | 12M | Q1 | Q2 | Q3 | Q4 | 12M |
| Food Ingredients | 313 | 39 | 387 | 337 | 1,076 | 369 | 342 | 476 | 465 | 1,652 |
| Chocolate & Confectionery Fats | 233 | 205 | 234 | 299 | 971 | 258 | -70 | 310 | 308 | 806 |
| Technical Products & Feed | 44 | 31 | 56 | 83 | 214 | 81 | 46 | 76 | 100 | 303 |
| Group Functions | -39 | -38 | -35 | -60 | -172 | -44 | -44 | -40 | -95 | -223 |
| Operating profit AAK Group | 551 | 237 | 642 | 659 | 2,089 | 664 | 274 | 822 | 778 | 2,538 |
| Financial net | -25 | -25 | -26 | -26 | -102 | -18 | -6 | -19 | -145 | -188 |
| Profit before tax | 526 | 212 | 616 | 633 | 1,987 | 646 | 268 | 803 | 633 | 2,350 |
| 2021 | 2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million | Q1 | Q2 | Q3 | Q4 | 12M | Q1 | Q2 | Q3 | Q4 | 12M |
| Food Ingredients | 313 | 343 | 387 | 337 | 1,380 | 369 | 406 | 476 | 465 | 1,716 |
| Chocolate & Confectionery Fats | 233 | 205 | 234 | 299 | 971 | 258 | 216 | 310 | 308 | 1,092 |
| Technical Products & Feed | 44 | 31 | 56 | 83 | 214 | 81 | 46 | 76 | 100 | 303 |
| Group Functions | -39 | -38 | -35 | -60 | -172 | -44 | -44 | -40 | -95 | -223 |
| Operating profit AAK Group | 551 | 541 | 642 | 659 | 2,393 | 664 | 624 | 822 | 778 | 2,888 |
| Financial net | -25 | -25 | -26 | -26 | -102 | -18 | -6 | -19 | -145 | -188 |
| Profit before tax | 526 | 516 | 616 | 633 | 2,291 | 646 | 618 | 803 | 633 | 2,700 |
| SEK million | FI Q4 2022 |
CCF Q4 2022 |
TPF Q4 2022 |
Total Q4 2022 |
FI 12M 2022 |
CCF 12M 2022 |
TPF 12M 2022 |
Total 12M 2022 |
|---|---|---|---|---|---|---|---|---|
| Europe | 3,331 | 1,133 | 782 | 5,246 | 12,113 | 5,530 | 2,951 | 20,594 |
| North and South America | 4,268 | 1,648 | 0 | 5,916 | 16,114 | 6,345 | 0 | 22,459 |
| Asia | 1,114 | 847 | 0 | 1,961 | 3,980 | 2,661 | 0 | 6,641 |
| Other countries | 150 | 44 | 0 | 194 | 454 | 277 | 0 | 731 |
| Net sales | 8,863 | 3,672 | 782 | 13,317 | 32,661 | 14,813 | 2,951 | 50,425 |
| SEK million | FI Q4 2021 |
CCF Q4 2021 |
TPF Q4 2021 |
Total Q4 2021 |
FI 12M 2021 |
CCF 12M 2021 |
TPF 12M 2021 |
Total 12M 2021 |
|---|---|---|---|---|---|---|---|---|
| Europe | 2,857 | 1,531 | 614 | 5,002 | 9,745 | 4,885 | 2,091 | 16,721 |
| North and South America | 2,994 | 1,036 | 0 | 4,030 | 10,262 | 3,685 | 0 | 13,947 |
| Asia | 863 | 431 | 0 | 1,294 | 2,998 | 1,378 | 0 | 4,376 |
| Other countries | 67 | 48 | 0 | 115 | 240 | 168 | 0 | 408 |
| Net sales | 6,781 | 3,046 | 614 | 10,441 | 23,245 | 10,116 | 2,091 | 35,452 |
| SEK million | 31.12.2022 | 31.12.2021 | Hierarchy level |
|---|---|---|---|
| Assets at fair value through profit and loss | |||
| Currency and raw material derivatives | 184 | 1,036 | 2 |
| Sales and purchase contracts | 2,199 | 882 | 2 |
| Investment in unlisted shares | 7 | - | 3 |
| Investment in funds | 43 | 26 | 3 |
| Derivatives used in cash flow hedges | |||
| Interest rate swaps | 25 | 5 | 2 |
| Assets at amortized cost | |||
| Financial non-current assets | 7 | 4 | - |
| Accounts receivables | 6,635 | 5,132 | - |
| Financial current assets | 85 | 25 | - |
| Cash and cash equivalents | 1,515 | 1,001 | - |
| Total financial assets | 10,700 | 8,111 | |
| Liabilities at fair value through profit and loss | |||
| Currency and raw material derivatives | 871 | 241 | 2 |
| Sales and purchase contracts | 1,140 | 1,420 | 2 |
| Liabilities at amortized cost | |||
| Liabilities to banks and credit institutions | 6,523 | 3,944 | - |
| Lease liabilities | 724 | 621 | - |
| Other interest-bearing liabilities | 12 | 13 | - |
| Total financial liabilities | 9,270 | 6,239 |
| Percent | Q4 2022 |
Q4 2021 |
12M 2022 |
12M 2021 |
|---|---|---|---|---|
| Food Ingredients | ||||
| Organic volume growth | -7 | 5 | -3 | 4 |
| Acquisitions/divestments | - | - | - | - |
| Volume growth | -7 | 5 | -3 | 4 |
| Chocolate & Confectionery Fats | ||||
| Organic volume growth | -10 | 12 | 0 | 16 |
| Acquisitions/divestments | - | - | - | - |
| Volume growth | -10 | 12 | 0 | 16 |
| Technical Products & Feed | ||||
| Organic volume growth | 4 | -4 | -4 | -1 |
| Acquisitions/divestments | - | - | - | - |
| Volume growth | 4 | -4 | -4 | -1 |
| AAK Group | ||||
| Organic volume growth | -6 | 5 | -2 | 5 |
| Acquisitions/divestments | - | - | - | - |
| Volume growth | -6 | 5 | -2 | 5 |
| SEK million | Q4 2022 |
Q4 2021 |
12M 2022 |
12M 2021 |
|---|---|---|---|---|
| Operating profit (EBIT) | 778 | 659 | 2,538 | 2,089 |
| Depreciation and amortization | 209 | 182 | 799 | 958 |
| EBITDA | 987 | 841 | 3,337 | 3,047 |
| SEK million | Q4 2022 |
Q4 2021 |
12M 2022 |
12M 2021 |
|---|---|---|---|---|
| Food Ingredients | ||||
| Operating profit excl. IAC | 465 | 337 | 1,716 | 1,380 |
| Exit Russia | - | - | -64 | - |
| Optimization European bakery business | - | - | - | -304 |
| Operating profit | 465 | 337 | 1,652 | 1,076 |
| Chocolate & Confectionery Fats | ||||
| Operating profit excl. IAC | 308 | 299 | 1,092 | 971 |
| Exit Russia | - | - | -286 | - |
| Operating profit | 308 | 299 | 806 | 971 |
| Technical Products & Feed | ||||
| Operating profit excl. IAC | 100 | 83 | 303 | 214 |
| Operating profit | 100 | 83 | 303 | 214 |
| AAK Group | ||||
| Operating profit excl. IAC | 778 | 659 | 2,888 | 2,393 |
| Exit Russia | - | - | -350 | - |
| Optimization European bakery business | - | - | - | -304 |
| Operating profit | 778 | 659 | 2,538 | 2,089 |
| R12M | R12M 31.12.2021 |
|---|---|
| 32,083 | 24,270 |
| -1,354 | -1,117 |
| -12 | |
| -4,458 | |
| -4,998 | -3,385 |
| 19,889 | 15,298 |
| 2,888 | 2,393 |
| 14.5 | 15.6 |
| 31.12.2022 -51 -5,791 |
| SEK million | 31.12.2022 | 31.12.2021 |
|---|---|---|
| Inventory | 11,174 | 9,054 |
| Accounts receivables | 6,635 | 5,132 |
| Other current receivables, non-interest-bearing | 3,686 | 2,818 |
| Accounts payables | -5,337 | -5,696 |
| Other current liabilities, non-interest-bearing | -5,411 | -3,981 |
| Net working capital | 10,747 | 7,327 |
| SEK million | 31.12.2022 | 31.12.2021 |
|---|---|---|
| Current interest-bearing receivables | 95 | 31 |
| Cash and cash equivalents | 1,515 | 1,001 |
| Pension liabilities | -58 | -271 |
| Lease liabilities | -724 | -621 |
| Non-current liabilities to banks and credit institutions | -3,526 | -1,611 |
| Current liabilities to banks and credit institutions | -2,997 | -2,333 |
| Other interest-bearing liabilities | -12 | -13 |
| Net debt | -5,707 | -3,817 |
| SEK million | 31.12.2022 | 31.12.2021 |
|---|---|---|
| Net debt | 5,707 | 3,817 |
| EBITDA (rolling 12 months) | 3,337 | 3,047 |
| Net debt/EBITDA, multiple | 1.71 | 1.25 |
| SEK million | 31.12.2022 | 31.12.2021 |
|---|---|---|
| Shareholders' equity | 15,036 | 11,783 |
| Non-controlling interests | 47 | 48 |
| Total equity including non-controlling interests | 15,083 | 11,831 |
| Total assets | 33,990 | 27,166 |
| Equity to assets ratio, percent | 44.4 | 43.6 |
| SEK million | Q4 2022 |
Q4 2021 |
12M 2022 |
12M 2021 |
|---|---|---|---|---|
| Net sales | 64 | 5 | 160 | 116 |
| Total operating income | 64 | 5 | 160 | 116 |
| Other external expenses | -58 | -27 | -151 | -88 |
| Cost for remuneration to employees | -54 | -41 | -130 | -113 |
| Depreciation, amortization and impairment losses | -2 | -1 | -7 | -6 |
| Total operating expenses | -114 | -69 | -288 | -207 |
| Operating profit (EBIT) | -50 | -64 | -128 | -91 |
| Dividend from Group companies | - | - | - | 1,039 |
| Profit from interest in Group companies | 108 | 82 | 108 | 82 |
| Interest income and similar items | -1 | 0 | 20 | 0 |
| Interest expense and similar items | -26 | -5 | -63 | -28 |
| Total financial net | 81 | 77 | 65 | 1,093 |
| Profit before tax | 31 | 13 | -63 | 1,002 |
| Income tax | -19 | -10 | 0 | 0 |
| Profit for the period | 12 | 3 | -63 | 1,002 |
| SEK million | 31.12.2022 | 31.12.2021 |
|---|---|---|
| Assets | ||
| Other intangible assets | 8 | 10 |
| Property, plant and equipment | 1 | 1 |
| Right-of-use assets | 2 | 6 |
| Financial assets | 9,974 | 9,682 |
| Deferred tax assets | 3 | 5 |
| Total non-current assets | 9,988 | 9,704 |
| Current receivables | 493 | 374 |
| Cash and cash equivalents | 0 | - |
| Total current assets | 493 | 374 |
| Total assets | 10,481 | 10,078 |
| Equity and liabilities | ||
| Shareholders' equity | 6,811 | 7,373 |
| Non-controlling interests | - | - |
| Total equity including non-controlling interests | 6,811 | 7,373 |
| Liabilities to banks and credit institutions | 3,000 | 1,000 |
| Lease liabilities | 1 | 2 |
| Other non-current liabilities | 36 | 27 |
| Total non-current liabilities | 3,037 | 1,029 |
| Liabilities to banks and credit institutions | 500 | 1,600 |
| Lease liabilities | 2 | 3 |
| Accounts payables | 18 | 6 |
| Other current liabilities | 113 | 67 |
| Total current liabilities | 633 | 1,676 |
| Total equity and liabilities | 10,481 | 10,078 |
For information regarding cocoa and cocoa butter please refer to the information at www.icco.org
AAK will host a conference call for investors, analysts and media on February 2, 2023, 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.
The interim report for the first quarter 2023 will be published on May 4, 2023.
The Annual General Meeting will be held in Malmö, Sweden on May 4, 2023.
The interim report for the second quarter 2023 will be published on July 19, 2023.
The interim report for the third quarter 2023 will be published on October 25, 2023.
The interim report for the fourth quarter and year-end 2023 will be published on February 7, 2024
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.
Carl Ahlgren Head of IR and Corporate Communications Mobile: +46 706 81 07 34 E-mail: [email protected]
AAK specializes in plant-based oils that are the valueadding ingredients in many of the products people love to consume. We make these products better tasting, healthier, and more sustainable. We enhance their sensory experience – by giving the silkier mouthfeel in premium chocolate, the juicier texture in a plant-based burger, and the puffier appearance in a lower-fat pastry.
We can also optimize their production by substituting existing ingredients with plant-based equivalents that give better efficiency. AAK's value-adding solutions enable our customers to be successful in a better way.
At the heart of AAK's offer is Customer Co-Development, combining our desire to understand what better means for each customer, with the unique flexibility of our production assets, and a deep knowledge of many products and industries, including Chocolate & Confectionery, Bakery, Dairy, Plant-based Foods, Special Nutrition, Foodservice and Personal Care.
Our 4,000 employees support our close collaboration with customers through 25 regional sales offices, 15 dedicated Customer Innovation Centers, and with the support of more than 20 production facilities.
Listed on Nasdaq Stockholm and with our headquarters in Malmö, Sweden, AAK has been Making Better Happen™ for more than 150 years.
Explore more at www.aak.com
Or contact us at [email protected]
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