AAK AB (publ.) Q2 2025 Earnings | 07/17/2025

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AAK AB (publ.) reported its second quarter 2025 results on July 17, 2025, demonstrating strong operating profit growth despite modest volume declines, as the company continues to advance its strategic transformation and operational efficiency initiatives. Net sales for Q2 2025 reached SEK 11.3 billion, a 2% increase year-over-year, supported by higher raw material prices and increased sales of specialty oils. Volumes, excluding the impact of the Hillside divestment, declined by 2% to 490,000 metric tons, reflecting ongoing softness in certain categories such as bakery and chocolate due to persistent high cocoa prices, while other segments—such as dairy—showed positive growth. Total volumes including the divestment decreased by 7%. Operating profit excluding items affecting comparability climbed to SEK 1,162 million, up 6% from SEK 1,098 million last year, with a 16% gain at fixed exchange rates. Operating profit per kilo rose to SEK 2.37, highlighting effective mix improvement, procurement gains, and pricing discipline. The company also recognized a one-time restructuring cost of SEK 250 million during the quarter related to its Fit-to-Win cost performance program. Profit for the period, adjusted for items affecting comparability, totaled SEK 851 million, up from SEK 809 million in Q2 2024. Earnings per share also improved to SEK 3.26 from SEK 3.11. Return on capital employed remained robust at 21.9%, underlining ongoing capital efficiency and disciplined reinvestment. AAK generated SEK 524 million in operating cash flow in the quarter, down from the very strong SEK 1,002 million the prior year, primarily reflecting lower working capital releases. The balance sheet remains solid, providing flexibility for ongoing innovation, customer collaboration, and specialty solutions expansion. CEO Johan Westman underlined continued progress in product mix management, cost efficiency, and innovation, noting that the company remains “prudently optimistic” about delivering its 2030 aspiration. Management reaffirmed their commitment to accelerated value creation through product portfolio upgrades and customer partnerships, despite a dynamic global environment. About Inside Ticker: For in-depth financial updates and expert market commentary on AAK AB (publ.) and other leaders in the plant-based food space, follow Inside Ticker and visit InsideTicker.com for the latest news, interviews, and analysis. Hashtags: #AAK #Q22025 #Earnings #FinancialResults #PlantBased #FoodIngredients #SpecialtyOils #ProfitGrowth #Innovation #OperationalExcellence #CashFlow #VolumePerformance #ReturnOnCapital #GlobalMarkets #FoodIndustry #InsideTicker #SustainableGrowth #CorporateResults #SEK #Bakery #Dairy #Chocolate #Transformation #FitToWin #InvestorUpdate