AAK ingredients posts strong second quarter results for chocolate and confectionery lines
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The Scandinavian AAK ingredients group has reported a considerable profit increase by 27 percent, reaching SEK 1,118 million ($1,04 billion), for the second quarter of 2024, reportedly driven by chocolate and confectionery applications, writes Neill Barston.
Moreover, the company which has specialised in plant-based oils that are designed to add value to product ranges, it has focused on enhancing the taste, flavour and health properties of a range of ingredients offerings.
As the business explained, its operations are focused on customer co-development, combining a desire to understand what better means for each customer with the unique flexibility of its production assets and deep knowledge across products and industries. 4,100 employees support close collaboration with customers through 25 regional sales offices.
Notably, as the company revealed, its production volumes increased by 4 percent to 525,000 MT (505,000), which was largely attributed to its performance within the chocolate, and broader confectionery sector.
As the company noted, its wider food ingredients operating profit also increased by 19 percent to SEK 755 million for the second quarter, despite wider global challenges prevailing within the sector.
Johan Westman, President and CEO welcomed the company’s latest trading update. He said: “Following a strong first quarter, we are pleased to continue progressing towards our 2030 aspiration in the second quarter. We delivered year-over-year volume growth and maintained an operating profit per kilo above two SEK. This resulted in a 27 percent increase in operating profit, following a 41 percent growth in the same period last year.”
