AAK's Interim Report for the Fourth Quarter and Year-end Rep
KARLSHAMN, Sweden, Jan. 30, 2020 /PRNewswire/ -- AAK Group, fourth quarter
AAK Group, full year
Our profit growth continued in the fourth quarter with both Food Ingredients and Chocolate & Confectionery Fats reporting strong year-over-year improvement. We continue to improve our margin and our operating profit per kilo.
Food Ingredients continue to grow, improving its operating profit by 9 percent, primarily driven by our semi-speciality solutions in Dairy, Bakery and Foodservice. The performance within the Special Nutrition segment was mixed. Lower birth rates in China and destocking by some customers had a negative impact on Infant Nutrition sales in the fourth quarter while we saw continued growth for Medical Nutrition. Our business with solutions for plant-based foods generated strong volume and profit growth.
Chocolate & Confectionery Fats reported double-digit profit growth, driven by favorable spot business opportunities in the quarter as well as an improved product mix. We continue to see pressure from some customers to roll contracted volumes forward. Our investment projects to increase capacity and strengthen our supply chain have been completed according to plan. The sourcing season for new kernels in West Africa has been good and we have managed to build an adequate safety stock to secure future production needs. With new kernels at hand and additional capacity, we expect to reach normal cost levels within the business area by the middle of the first quarter 2020.
Within Technical Products & Feed, our crushing operation continued to perform well. Our fatty acids business and our feed business declined compared to the record-high fourth quarter of 2018. However, compared to any other fourth quarter, the performance was very strong.
We have during the year reviewed our market and our capabilities to define AAK's strategic direction going forward. Building on a very strong historical performance, we will preserve the DNA of our company. Passion, drive and entrepreneurship that can be found in all corners of AAK, our unique co-development approach and customer centricity, and our determined focus on sustainability will remain key going forward.
The strategic direction will be focused on the opportunities within the specific industries we serve as well as sustainability, health and nutrition. We will step up our focus and investments within Plant-based Foods and develop a Health & Nutrition platform. For Special Nutrition and Chocolate & Confectionery Fats we will invest for continued growth while focusing on optimizing our performance within Bakery and Dairy.
We are well positioned with our offer of plant-based, healthy, high value-adding oils and fats solutions, using our customer co-development approach. We continue to see favorable underlying trends in our markets and we remain prudently optimistic about the future.
Press and analyst conference
The Interim report for the fourth quarter and year-end 2019 will be presented today, January 30, 2020 at 10:00 a.m. CET at a press and analyst conference. For participation, please see instructions under the Investor tab at the AAK website, www.aak.com.
This information is information that 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 08:50 a.m. CET on January 30, 2020.
AAK is a leading provider of value-adding vegetable oils & fats. Our expertise in lipid technology within foods and special nutrition applications, our wide range of raw materials and our broad process capabilities enable us to develop innovative and value-adding solutions 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. Our unique co-development approach brings our customers' skills and know-how together with our own capabilities and mindset for lasting results. Listed on Nasdaq Stockholm and with our headquarters in Malmö, Sweden, AAK has more than 20 different production facilities, sales offices in more than 25 countries and more than 3,800 employees. We are AAK - The Co-Development Company.
For further information, please contact:
E-mail: [email protected]
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The following files are available for download:
The full report (PDF)
Press Release (PDF)
SOURCE AAK AB