Sweden's AAK Q2 profit rises on chocolate and confectionary fats growth
Sweden's AAK Q2 profit rises on chocolate and confectionary fats growth
Overview
Sweden plant-based oils producer's Q2 volumes declined 1%, with softer profitability
Q2 net income and EPS rose yr/yr despite production challenges
Company reported strong Q2 cash flow from operating activities
Outlook
AAK did not provide specific guidance for the current or upcoming periods
Result Drivers
FOOD INGREDIENTS WEAKNESS - Co said operating profit in Food Ingredients fell 14% due to market caution and production-related challenges at Karlshamn site
CHOCOLATE & CONFECTIONERY FATS GROWTH - Operating profit in Chocolate & Confectionery Fats rose 9% yr/yr
Company press release: ID:nMFN8QBcZz
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 EPS |
| SEK 3.07 |
|
Q2 Net Income |
| SEK 804 mln |
|
Q2 Adjusted Free Cash Flow |
| SEK 1.08 bln |
|
Q2 ROCE |
| 20.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for AAK AB (publ) is SEK310.00, about 27% above its July 16 closing price of SEK244.00
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)