Fredrik Nilsson, our CFO, gives you the top arguments for investing in AAK.
1. Above the market growth
The underlying global growth in the segments in which AAK is present is normally in line with global GDP growth. AAK has in the past been able to grow faster than the underlying markets in our focus areas – speciality and semi-speciality solutions in Food Ingredients and Chocolate & Confectionery Fats – despite not having a fully global footprint. With our greenfield investments and our latest acquisitions in growth markets, we have strengthened our footprint and become a truly global company. Our ambition is to continue to grow faster than the underlying markets.
2. Average 10 percent year-over-year operating profit improvement for the coming years
Between 2010 and 2017 AAK has annually increased its operating profit by 10 percent on average (at fixed foreign exchange rates and excluding acquisitions). Including acquisitions and positive currency translation differences, operating profit has increased 12 percent on average. Based on our high activity within sales, customer innovation and new product development, on the very solid foundation we have built, and on our strong executive and local management, we see no reason to lower that ambition for the coming years.
3. Strong balance sheet supporting further growth
Despite considerable greenfield investments we have over recent years built a very strong balance sheet with an improved equity ratio. Combined with long-term loan agreements this has created a solid foundation for further growth, both organically and through selective and strategic acquisitions.
4. Very strong underlying growth drivers
AAK has an important geographical footprint in regions where both population and urbanization is increasing – demographic changes that open up substantial market opportunities. We are strongly supported by our customer value propositions for health and reduced costs and our customer product co-development and solutions approach. Furthermore, we put a lot of focus on trends and global key drivers that affect the behavior of end consumers – indulgence, health, trust, personalization, and convenience.