In This Article:
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Volume Decrease: 1% decrease in volumes, mainly driven by food ingredients.
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Operating Profit per Kilo: Increased by 16% year on year at fixed currencies.
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Absolute Operating Profit: Increased by 11% or 14% at fixed FX.
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Operating Cash Flow: SEK118 million.
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Net Debt to EBITDA: 0.29.
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Return on Capital Employed (ROCE): 22.4%.
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Proposed Dividend: SEK5 per share, a 35% increase from last year.
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Food Ingredients Volume: Decreased by 4% year over year.
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Food Ingredients Operating Profit per Kilo: Increased to SEK2.28, a 16% growth.
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Food Ingredients Operating Profit: SEK767 million, a 17% increase at fixed FX.
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Chocolate and Confectionery Fats Volume: Modest increase of 1% year on year.
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Chocolate and Confectionery Fats Operating Profit per Kilo: Increased to SEK4.19, a 7% improvement.
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Chocolate and Confectionery Fats Operating Profit: SEK520 million, an 8% increase year on year.
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Technical Products and Feed Volume: Increased by 7% year on year.
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Technical Products and Feed Operating Profit per Kilo: Reached SEK0.86, a 9% improvement.
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Technical Products and Feed Operating Profit: SEK69 million, a 17% increase year on year.
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CapEx: Just over SEK363 million in the quarter, total for the year SEK1.25 billion.
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Hillside Divestment Cash Flow Impact: SEK646 million positive impact.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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AAK AB (ARHUF) reported an 11% increase in operating profit for Q4 2024, building on a 47% growth from the previous year.
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The company achieved a 16% year-on-year increase in operating profit per kilo, driven by global optimization programs and favorable market conditions in chocolate and confectionery fats.
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AAK AB (ARHUF) maintained a strong financial position with a Net Debt to EBITDA ratio of 0.29, highlighting financial flexibility.
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The company proposed a 35% increase in dividends to SEK5 per share, reflecting strong earnings growth.
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AAK AB (ARHUF) opened a Biotechnology Innovation Centre in Lund, enhancing its capabilities in enzyme and fermentation research, which supports industries like food, feed, and cosmetics.
Negative Points
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Volumes decreased by 1% in Q4 2024, primarily due to a decline in food ingredients.
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The food ingredients segment saw a 4% year-over-year volume decrease, driven by lower sales of non-specialty oils and a decline in dairy.
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The company faced a negative currency translation effect of SEK36 million, impacting operating profit.
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Operating cash flow was affected by an increase in working capital, mainly driven by inventory levels.
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AAK AB (ARHUF) experienced softer consumer demand for chocolate, particularly in the Americas, affecting the chocolate and confectionery fats segment.