Sweden’s AarhusKarlshamn (AAK) has targeted further annual cost savings, the food ingredients group revealed as it published its second-quarter earnings.

AAK chief executive Jerker Hartwall said that the company’s ongoing rationalisation plan had provided it with “new opportunities” to generate additional annual savings of SEK200m (US$27.5m) by 2011, which he said would be achieved without any additional non-recurring costs.

The company booked a decline in second-quarter operating profit, which fell from SEK171 last year to SEK146m this year.

Food ingredients operating profit increased 22%. However, this was offset by a decline in profits at the group’s chocolate and confectionery fats business, which has been negatively affected by the recession, AAK said.

Sales remained relatively flat at SEK4.05bn, down from SEK4.07bn last year.