AAK Interim Report, Second Quarter, 2010

AAK Interim Report, Second Quarter, 2010

Second quarter 2010

  · Net sales amounted to SEK 3,594 million (4,045). The decrease in
sales was net of negative currency translation impact of SEK 143 million
but reflected a 5% increase in volumes (higher speciality volumes but
lower commodity volumes) and the deferred effect of lower raw material
prices.
  · Operating profit at SEK 164 million was up 12 percent from SEK 146
million last year. For comparable units (adjusted for divestments) and
at fixed exchange rates the operating profit amounted to SEK 171 million
(143), an improvement of 20 percent.
  · Earnings per share was SEK 2.65 (1.93).

 Six months 2010

  · Net sales were at SEK 7,104 million (8,268). The decrease in sales
was net of negative translation impact of SEK 347 million but with
volumes 2% higher (increased speciality volumes but lower commodity
volumes) and the deferred effect of lower raw material prices.
  · Operating profit at SEK 342 million was up 13 percent from SEK 303
million last year. For comparable units (adjusted for divestments) and
at fixed exchange rates the operating profit amounted to SEK 362 million
(292), an improvement of 24 percent.
  · Earnings per share was SEK 5.44 (3.52).

Market conditions
Volumes for speciality products are expected to continue to increase in
Food Ingredients as well as Chocolate & Confectionery Fats. 

As communicated in Q1, there remains a general uncertainty about the
impact of the excess supply capacity in the Chocolate & Confectionery
industry. Short term volume growth will not compensate for the
consequent reduction in margins. A slow recovery in the chocolate
consumption in Eastern Europe compared to the rest of the world
continues to suppress growth. 

Despite some market uncertainty AAK sees growth opportunities in all
business areas. Organic growth for speciality products, in combination
with a selective acquisition strategy, is our way forward.