AAK AB (publ)
STO:AAK
AAK AB (publ)
AAK AB (publ), a Swedish titan in the food industry landscape, has skillfully positioned itself as a lynchpin in the global supply chain of plant-based oils and fats. Originating over a century ago, the company has leveraged its extensive experience and Scandinavian ingenuity to carve a niche in specialty ingredients, where it refines raw materials like palm, shea, and rapeseed into high-value products. These products are not just basic commodities; they are carefully crafted solutions tailored to the specific needs of various industries, including foodservice, confectionery, and cosmetics. AAK's secret sauce lies in its ability to blend science with nature, developing sustainable and innovative alternatives to traditional fats and oils, which in an age of heightened environmental awareness, appeals to increasingly conscientious consumers.
The company thrives by understanding and predicting industry trends, then tailoring its diverse and flexible product portfolio to meet these market demands. This approach enables AAK to engage in long-term partnerships, offering customized solutions that enhance both product performance and consumer appeal. Its creative collaborations with major food and cosmetics companies serve as testimonies to its pivotal role in product development and value addition. Through its global presence and robust supply chain management, AAK secures its raw materials sustainably and ethically, further strengthening its commitment to corporate responsibility. It's not merely about selling a product; for AAK, it's about creating enduring value through innovation and sustainability, presenting itself as an indispensable partner to those navigating the complexities of modern consumption.
AAK AB (publ), a Swedish titan in the food industry landscape, has skillfully positioned itself as a lynchpin in the global supply chain of plant-based oils and fats. Originating over a century ago, the company has leveraged its extensive experience and Scandinavian ingenuity to carve a niche in specialty ingredients, where it refines raw materials like palm, shea, and rapeseed into high-value products. These products are not just basic commodities; they are carefully crafted solutions tailored to the specific needs of various industries, including foodservice, confectionery, and cosmetics. AAK's secret sauce lies in its ability to blend science with nature, developing sustainable and innovative alternatives to traditional fats and oils, which in an age of heightened environmental awareness, appeals to increasingly conscientious consumers.
The company thrives by understanding and predicting industry trends, then tailoring its diverse and flexible product portfolio to meet these market demands. This approach enables AAK to engage in long-term partnerships, offering customized solutions that enhance both product performance and consumer appeal. Its creative collaborations with major food and cosmetics companies serve as testimonies to its pivotal role in product development and value addition. Through its global presence and robust supply chain management, AAK secures its raw materials sustainably and ethically, further strengthening its commitment to corporate responsibility. It's not merely about selling a product; for AAK, it's about creating enduring value through innovation and sustainability, presenting itself as an indispensable partner to those navigating the complexities of modern consumption.
Operating Profit: Operating profit rose 7% year-on-year in Q4 (excluding the Hillside divestment and currency effects), but declined 2% including SEK 80 million negative currency impact.
Volume Trends: Volumes fell 2% year-on-year in Q4, with Food Ingredients flat but Bakery weaker, Chocolate & Confectionery Fats down 4%, and Technical Products & Feed down 5%.
Profitability: Operating profit per kilo reached SEK 2.45, up 2% year-on-year and 9% at fixed exchange rates.
Dividends & Buyback: The Board proposes a 10% increase in ordinary dividend (SEK 5.50 per share), an extraordinary dividend (SEK 3.85 per share), and introduces a SEK 1 billion annual share buyback for 3 years.
Cash Flow: Q4 operating cash flow was SEK 288 million, while free cash flow was negative SEK 47 million due to higher working capital from increased raw material costs.
Cost Savings: The Fit-to-Win program delivered SEK 150 million in cost savings so far, ahead of schedule, and targets SEK 300 million by mid-2026.
2026 Outlook: Management is focused on volume growth outpacing the market and maintaining profitability, despite ongoing demand softness and currency headwinds.
