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AAK Interim Report, Second Quarter, 2010

Second quarter 2010

  • Net sales amounted to SEK 3,594 million (4,045). The decrease in sales was net of negative currency translation impact of SEK 143 million but reflected a 5% increase in volumes (higher speciality volumes but lower commodity volumes) and the deferred effect of lower raw material prices.
  • Operating profit at SEK 164 million was up 12 percent from SEK 146 million last year. For comparable units (adjusted for divestments) and at fixed exchange rates the operating profit amounted to SEK 171 million (143), an improvement of 20 percent.
  • Earnings per share was SEK 2.65 (1.93).

 Six months 2010

  • Net sales were at SEK 7,104 million (8,268). The decrease in sales was net of negative translation impact of SEK 347 million but with volumes 2% higher (increased speciality volumes but lower commodity volumes) and the deferred effect of lower raw material prices.
  • Operating profit at SEK 342 million was up 13 percent from SEK 303 million last year. For comparable units (adjusted for divestments) and at fixed exchange rates the operating profit amounted to SEK 362 million (292), an improvement of 24 percent.
  • Earnings per share was SEK 5.44 (3.52).

Market conditions
Volumes for speciality products are expected to continue to increase in Food Ingredients as well as Chocolate & Confectionery Fats. 

As communicated in Q1, there remains a general uncertainty about the impact of the excess supply capacity in the Chocolate & Confectionery industry. Short term volume growth will not compensate for the consequent reduction in margins. A slow recovery in the chocolate consumption in Eastern Europe compared to the rest of the world continues to suppress growth. 

Despite some market uncertainty AAK sees growth opportunities in all business areas. Organic growth for speciality products, in combination with a selective acquisition strategy, is our way forward.



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