FDBusiness.com

AAK achieves record high

 Breaking News
  • Lactalis Expands in Infant Nutrition With €740 Million Acquisition Lactalis Group, the international dairy group based in Laval, France, is acquiring the Nutritional business of Aspen Pharmacare for €739.8 million (R12.9 billion). The business being acquired supplies a wide range of infant nutritional and growing-up milk products across both the premium and value segments. It manufactures and markets well established quality brands, including S-26, [...]...
  • Thatchers Cider to Invest £14 Million in New Cider Mill Thatchers Cider, the family owned English cider producer, is to invest £14 million in a new cider mill at its Myrtle Farm site in Somerset to meet growing demand for its products. The company has applied for planning permission and, if granted, the new mill would come on stream in 2019. “This investment is about our [...]...
  • Coca-Cola Great Britain Teams Up With Premier League Premier League and Coca-Cola Great Britain have announced a new three-and-a-half-year partnership, starting in January 2019. It is the first sponsorship Coca-Cola Great Britain will activate across multiple brands within its portfolio, showcasing a range of drinks including sparkling soft drinks, water and fruit-based drinks, with low and no-sugar options. The partnership will see Coca-Cola work [...]...
  • Barry Callebaut Completes $30 Million Capacity Expansion in North America Barry Callebaut, the world’s leading manufacturer of high-quality chocolate and cocoa products, has announced the completion of several expansion investments in three of its North American facilities located in St Hyacinthe, Quebec; Chatham, Ontario; and St Albans, Vermont. The investments amount to close to US$30 million and are in line with previously announced plans. Recent investments [...]...
  • Strong First Half From Hilton Food Group Hilton Food Group, the UK-based leading specialist international food packing business, has reported a 25.0% increase in turnover to £863.6 million and by 24.5% on a constant currency basis for the 28 weeks to 15 July 2018. Volumes increased by 12.7% reflecting growth in the UK, Ireland and Australia. Operating profit for the first half [...]...

AAK achieves record high

February 15
11:31 2016

veg_oilSwedish vegetable oils company AAK has reported a new record high operating profit and continued organic volume growth. Food Ingredients reported a very strong quarter due to a further improved product mix, continued organic volume growth and a relatively moderate fourth quarter last year. Chocolate and Confectionery Fats continued to improve but, as expected, at a slightly slower pace after some very strong quarters.

Operating profit, excluding acquisition costs of SEK 15 million, reached SEK 388 million (343 excluding net positive, non-recurring items of SEK 16 million), an improvement of 13% compared to the corresponding quarter in 2014. Operating profit at fixed foreign exchange rates, and adjusted for acquisition costs and non-recurring items, improved by 7%. During the quarter AAK said it has continued to invest in the organisation by adding more resources in sales and customer innovation, particularly in growth markets.

Food Ingredients continued to grow organically and reported a 2% volume increase. The picture between the segments was, however, very variable.

The Bakery segment had a challenging quarter, particularly in Europe. Other regions, such as the US, continued to show good organic volume growth.

The Dairy segment continued the strong trend from the third quarter and reported double-digit organic volume growth despite the low prices on milk fat. Europe and the US showed particularly strong growth in this segment.

Infant Nutrition speciality volumes, comprising InFat business in Advanced Lipids AB, a joint venture of AAK and Enzymotec, continued the organic growth trend from the last two quarters. For the full year though, AAK said it sees a modest organic volume growth after the extraordinary first quarter in 2014. Infant Nutrition product range Akonino continued to show good organic volume growth.

Food Service reported low organic volume growth, however with continued good growth in the UK. Market conditions in the US were more challenging.

Commodity products showed organic volume growth for the fifth consecutive quarter, but still from a very low level and bringing in some incremental profit.

Total volumes for Chocolate & Confectionery Fats increased by 2%. The organic volume growth in the quarter was negative by 2%. The business area was, however, again negatively influenced by the deteriorating market conditions in Russia. After 24 months of deteriorating market conditions, Ukraine has during the fourth quarter stabilized at a low level. Total volumes excluding Russia were stable in the quarter. Low-end products continued to be under very strong competitive pressure, a trend since several quarters.

AAK is a Swedish-Danish company and producer of high-value added vegetable oils and fats. The company was founded in 2005 through the merger of Karlshamns AB (founded 1918 in Karlshamn, Sweden) and Aarhus United A/S (founded 1871 in Aarhus, Denmark).

About Author

admin

admin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
  • September 30, 2018Trade Fair for Butchers, Caterers and Meat Industry (Meat Expo)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements