Positive outlook projected for Sweden’s AAK ingredients business
Swedish ingredients group AAK has delivered its first quarter results, with the company posting a 1% profit increase year-on-year to 1,26 billion SEK (115.2 million euros), despite challenging market conditions, writes Neill Barston.
As the company noted, production volumes excluding its decision to sell North American assets to Hillside declined by 5 percent to 503,000 MT (530,000), but including the impact from its divestment activities, volumes declined by 10 percent.
Profit for the period totalled SEK 934 million (934), with the company experiencing growth for its confectionery interested, including chocolateand Confectionery Fats operating profit reached SEK 523 million (505), an increase of 4 percent compared to the same quarter last year. However, broader food ingredients operating profit decreasing by 1 percent to SEK 769 million (779).
As the business explained, at the heart of AAK’s offering is Customer Co-Development, combining our desire to understand what better means for each customer with the unique flexibility of our production assets and deep knowledge across products and industries. 4,000 employees support our close collaboration with customers through 25 regional sales offices, 15 dedicated Customer Innovation Centres and support of more than 19 production facilities
Johan Westman, President and CEO acknowledged that the first period of 2025 had been notably turbulent. Despite this, he asserted that the remainder of the year appeared to herald a positive outlook for the business, despite continued uncertainties in the market.
He commented: ”With the first quarter of 2025 behind us, and in an environment of ongoing volatility, we remain focused on executing our strategic priorities. We are concentrating on what we can control—optimising our product mix, enhancing operational efficiency, and driving productivity improvements across the organisation. At the same time, we continue to prioritise innovation and work even more closely with our customers to anticipate their needs and deliver solutions that create value. Looking ahead, we remain prudently optimistic about AAK’s long-term potential, and we are firmly committed to delivering on our 2030 Aspiration.”
