Rising volumes of speciality ingredients and chocolate and confectionery fats has boosted the second-quarter profits of Sweden-based AAK.
The company today (18 August) reported a 37.9% jump in net profit to SEK109m (US$14.8m) for the three months to the end of June.
Operating profit rose by 12% to SEK164m even as net sales fell 11.1% to SEK3.59bn.
“Good” volume growth from AAK’s speciality products boosted profits from its food ingredients division, the company’s largest business. Operating profit from the division rose 19% to SEK107m.
Operating profit from AAK’s chocolate and confectionery fats division came in “just above” last year’s second quarter as higher volumes offset lower margins. Operating profit stood at SEK57m compared to SEK55m in the second quarter of 2009.
“Food ingredients continued to develop very well and we saw an acceptable result for chocolate and confectionery Fats,” said CEO Arne Frank.
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“The global recession has provided a strong incentive for our customers to reduce costs and to further drive the substitution of expensive cocoa butter.”