AAK reports record operating profit in Q1
The Sweden-based vegetable fats firm reported operating profit of SEK 220m (about €25.57m) during the quarter, up 10% on the prior year period, and EBITDA of SEK 330m – up 8% on Q1 2012. The company’s strongest division, Food Ingredients, reported operating profit of SEK 158m, up 15%.
The Chocolate and Confectionery Fats segment improved operating profit by 4%, to reach SEK 84m. Earnings per share also increased 10%, from SEK 3.43 to SEK 3.78.
The company’s president and CEO Arne Frank said in statement: “Based on AAK’s customer value propositions for health and reduced costs, our customer product co-development and solutions approach, and the AAK Acceleration program, we continue to remain prudently optimistic for the future.”
Second half expectations for chocolate and confectionery
“The main drivers are expected to be the strong Food Ingredients business and the expected recovery in Chocolate & Confectionary Fats. Irrespective of market conditions, the anticipated improvement in the Chocolate & Confectionary Fats results is however unlikely to be significant until the second half of 2013.”
In the previous quarter, Frank had said he expected recovery to begin in the first half of the year, and significant improvement in the second half “provided the cocoa butter price remains at the current more normal level”.
