Brief: AAK Q1 Operating Profit Rises To SEK 664 Million

AAK AB (publ)

27/04/2022 11:07

April 27 (Reuters) - AAK AB (publ)  AAK.ST :
    * AAK'S INTERIM REPORT FOR THE FIRST QUARTER 2022 - ALL-TIME
HIGH
OPERATING PROFIT WITH STRONG DEVELOPMENT ACROSS BUSINESS AREAS
    * Q1 TOTAL VOLUMES 575,000 MT VERSUS 569,000 MT YEAR AGO
    * Q1 OPERATING PROFIT SEK 664 MILLION VERSUS SEK 551 MILLION
YEAR
AGO
    * Q1 PROFIT FOR PERIOD SEK 492 MILLION VERSUS SEK 400
MILLION YEAR
AGO
    * EARLY MARCH, WE HALTED DELIVERIES TO AND SALES IN RUSSIA.
WE
HAVE TODAY ANNOUNCED OUR DECISION TO WIND UP OUR OPERATIONS AND
INVESTMENTS IN COUNTRY
    * IT WILL BE A CONTROLLED EXIT, CAREFULLY MANAGING RISK,
SAFETY AS
WELL AS LEGAL OBLIGATIONS FOR OUR EMPLOYEES, CUSTOMERS,
SUPPLIERS, AND OUR JOINT VENTURE PARTNER
    * AAK, WHICH HOLDS A 75 PERCENT STAKE IN THIS JOINT VENTURE,
WILL
SEEK AN AGREEMENT TO LET BUSINESS REVERT TO OUR PARTNER
    * CONTROLLED EXIT IS EXPECTED TO RESULT IN A COST OF
APPROXIMATELY
SEK 300-350 MILLION, AFFECTING INCOME STATEMENT IN Q2 2022
    * RUSSIA MAKES UP ABOUT 3 PERCENT OF AAK'S TOTAL VOLUMES, AS
MEASURED IN METRIC TONS
    * WE EXPECT TO BE ABLE TO GRADUALLY RE-ROUTE SOME OF CCF
VOLUMES
TO OTHER GEOGRAPHIES, LIMITING TOTAL IMPACT ON OPERATING PROFIT
TO APPROXIMATELY SEK 75-100 MILLION THIS YEAR
    * CHOCOLATE & CONFECTIONERY FATS CONTINUED TO GROW BOTH IN
TERMS
OF VOLUMES AND PROFIT. VOLUMES WERE UP 5 PERCENT YEAR-ON-YEAR,
OPERATING PROFIT WAS UP 9 PERCENT
    * DESPITE SHORT- TO MID-TERM UNCERTAINTY, WE SEE NO REASON
TO
ADJUST OUR VIEW ON STRONG FAVORABLE UNDERLYING LONG-TERM TRENDS
IN OUR MARKETS

Source text for Eikon:  ID:nWkr9Ll2zG 
Further company coverage:  AAK.ST 

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