Swedish vegetable oil producer AarhusKarlshamn (AAK) said it sees growth opportunities in all business areas as it booked an increase in first-quarter profits.
Earnings per share reached SEK2.79 (US$0.35) compared to SEK1.59 in the prior year. Operating profit was up 13% at SEK178m.
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Net sales, however, dropped 17% to SEK3.51bn due to lower raw-material prices. Volumes dipped 1%.
“AAK is today a company with a stronger balance sheet and a good balance between the business areas. The cost rationalisation programme and the working capital improvement project are being executed according to plan,” the firm said.
AAK said it expects volumes for speciality products to continue to increase in food ingredients as well as chocolate and confectionery fats.
However, the firm added: “There remains a general uncertainty about the impact of excess supply capacity in the industry and about lower demand as a consequence of the global recession.
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By GlobalData“Despite some market uncertainty AAK sees growth opportunities in all business areas. Organic growth for speciality products, in combination with a selective acquisition strategy, is our way forward,” the firm added.
