Business News

AAK: Operating profit for the first quarter 2011 increased by 15 percent

Wednesday 04. May 2011 - Net sales in the first quarter increased to SEK 3,843 million (3,510) mainly due to increased raw material prices, partly offset by a negative currency translation impact of SEK 253 million. Volumes decreased by 4 percent due to lower commodity volumes. Speciality volumes continue to increase.

Operating profit amounted to SEK 204 million (178), an improvement by 15 percent. At fixed exchange rates operating profit improved by 21 percent.
Earnings per share amounted to SEK 3.38 (2.79), an improvement by 21 percent.
Positive impact of the AAK Acceleration strategy for business area Food Ingredients.
The business area Chocolate & Confectionery Fats showed volume growth and stable margins.
Another strong quarter for the business area Technical Products & Feed.
Additional rationalization program, more savings and increased focus on speciality products. The total cost for this rationalization program is estimated at approximately SEK 40 million with annual savings of approximately SEK 30 million with full impact during the second quarter 2012. The cost related to this rationalization program will be recorded during the second quarter 2011.
“We are now going into the second quarter and we remain prudently optimistic for the quarter and for the execution of AAK Acceleration”, commented CEO Arne Frank.