AAK jumps on much better-than-expected prelim figures

AAK AB (publ)

10/10/2023 15:20

(Updates shares, milestone, adds analyst comment)
    ** AAK  AAK.ST  shares about 8% to the top of pan-European
600 index  .STOXX  after the Swedish food processing company
posted its preliminary figures for Q3 
    ** Its Q3 prelimnary operating profit rises 39% y/y to 1,143
million Swedish crowns ($104.60 million), driven by higher sales
of speciality solutions, productivity improvements and price
management
    ** The shares head for their best day in 6 months 
    ** Danske Bank analyst Oskar Lindstrom says the numbers were
"much stronger than expected", leading to a reversal in the
previously forecast profit decline
        ** He adds that despite a decrease in volumes, the
company demonstrated an improved EBIT per kilo, a trend that
began in Q1 and persisted through Q3
  
    ** AAK says the results are also significantly boosted by
currency gains, providing for a SEK 32 million tailwind
    ** Including Tuesday's rise, the stock has gained about 16%
YTD

($1 = 10.9272 Swedish crowns)

 (Reporting by Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))