Decline in confectionery fats impact AAK

Second quarter operating profits are down at Swedish chocolate and confectionery fats supplier AarhusKarlshamn (AAK) due to a decline in demand.

Net sales stood at more than four billion Swedish kronor (€392m) but operating profits were 146 million kronors (€14.3m). The company has recorded additional preliminary insurance compensation of 70 million kronor (€6.8m), which is not included in the operating profit. This insurance compensation relates to business interruption in both 2008 and 2009.
The Group CEO Jerker Hartwll comments, “Strong cash flow in the second quarter materialised as expected and has further strengthened the balance sheet. Our Food Ingredients division improved operating profit by 22% despite the very tough economic conditions but Chocolate & Confectionery Fats continued to be negatively affected by the recession.”