39
Directors’ Report
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(publ.), corporate identity number 556669-2850, with its registered
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– December 31, 2017.
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Net sales increased by SEK 4,379 million to SEK 26,436 million
(22,057). The increase was mainly due to a better product mix,
acquisitions and higher raw material prices, but was partly
offset by a negative currency translation impact of SEK 327
million. Volumes increased by 8 percent and organic growth was
5 percent, primarily due to a strong demand for speciality and
semi-speciality products, which continued to be strong.
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(1,615), an improvement of 11 percent. The currency translation
impact was negative and amounted to SEK 19 million. Opera-
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recurring items, improved by 12 percent Two business areas,
Food Ingredients and Chocolate & Confectionery Fats, reported
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2017 compared to the previous year.
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to an improved product mix but was offset by a negative
currency translation impact and expenses in connection with
new investments.
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from the structure in the interest market. The equity/assets ratio
was 46 percent as at December 31, 2017 (44 percent as at
December 31, 2016). Consolidated net debt as at December 31,
2017 was SEK 2,666 million (2,620 as at December 31, 2016).
On December 31, 2017, the Group had total credit facilities of
approximately SEK 6,213 million.
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working capital, amounted to SEK 1,487 million (1,476). Working
capital increased by SEK 388 million (263). Good working cap-
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this was offset by continued organic volume growth and higher
raw material prices, combined with working capital being tied up
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ing activities, including changes in working capital, amounted to
SEK 1,099 million (1,213). After investments, including acquisi-
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The Group’s net investments in non-current assets amounted
to SEK 810 million (1,421 incl. acquisitions), mainly related to
maintenance and growth investments.
Return on Capital Employed, calculated on a rolling 12 months
basis, amounted to 15.6 percent (15.8 percent on December
31, 2016). Return on Capital Employed declined due to higher
working capital (higher raw material prices had a negative
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and acquisitions in 2016.
Earnings per share were SEK 28.24 (23.71), an increase of 19
percent. The US tax reform, the Tax Cuts & Jobs Act (TCJA),
had an impact on AAK in the fourth quarter as US corporate tax
was reduced from 35 to 21 percent. As a consequence of this
tax cut, AAK recognized positive non-recurring tax revenue of
SEK 35 million due to revaluation of future tax liabilities that AAK
USA has in its balance sheet.
The proposed dividend amounts to SEK 9.75 (8.75), an increase
of SEK 1.00 or 11 percent
The Company’s largest business area, Food Ingredients, reported
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3 percent to SEK 0.77 (0.75). This was due to an improved product
mix but was offset by a negative currency translation impact
and expenses in connection with new investments. The Bakery
segment had another challenging year, particularly in Europe and
North Latin America. The Dairy segment reported high, double-
digit organic volume growth. Special Nutrition comprised of Infant,
Senior and Medical Nutrition, reported high volume growth, which
is due to exceptional volume growth for the Akonino® product range
in Infant Nutrition. Our other product range in Infant Nutrition,
InFat®, sold through Advanced Lipids AB, a joint venture of AAK
and Enzymotec, also showed good volume growth combined with
an improved product mix. Foodservice reported declining volumes,
primarily due to challenging market conditions in northern Europe.
Chocolate & Confectionery Fats reported an improvement in
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ly by some production challenges in Aarhus, Denmark, which led to
increased production and supply costs. This occurred in combination
with a higher demand than expected. Volumes increased by
10 percent. Recent years’ strong customer co-development, new
innovative solutions, and further expansion of our geographical
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increased from SEK 1.81 to SEK 1.82 as a consequence of this. At
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for TROPICAO, our chocolate solution for hot climate markets.
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Products & Feed, was SEK 84 million (100), a decrease of
16 percent It was primarily the higher raw material prices for fatty
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