29 29
2015 2016 2017 2018 2019
Volumes, thousand tons 263 274 278 301 300
Net sales, SEK million 1,243 1,233 1,417 1,513 1,456
Operating profit, SEK million 88 100 84 155 150
Operating profit per kilo, SEK 0.33 0.36 0.30 0.51 0.50
Tefac – industrial applications
AAK’s business for technical applications, Tefac, had
an excellent 2019 in a historical perspective, but did
not quite reach the level of the record-high 2018. Our
high-end products are still in demand, and we saw
particularly
good growth for our vegetable candle
waxes. This was, however, offset by very low prices
for glycerine caused by a substantial global oversupply
and a volatile raw material market.
Solutions
AAK offers fatty acids and glycerine that are produced
by splitting the fat molecule and refining the outcome
into value-adding solutions for various applications.
Based on sustainably produced vegetable oils, AAK
also offers solutions for candle makers.
Trends
In 2019, there was good growth for our candle business.
Consumer preferences for more sustainable solutions
are driving our customers in the candle industry away
from fossil paraffin. Our customers with exposure to the
plastics and automotive industries in Europe experienced
a sluggish market during the second half of 2019.
New products
We have during the year continued to add solutions to
our portfolio for candle makers to match our customers’
demand for sustainable and functional candle waxes.
Future growth
AAK has historically provided a wide range of products
for candle applications. With our widened product
portfolio for candle wax applications, we will continue to
focus on developing more opportunities in this segment
to build the best possible pipeline for future growth.
Volumes
(13% of Group total)
(Thousand tons)
2015 2016 2017 2018 2019
350
300
250
200
150
100
50
0
300
301
278
274
263
Operating profit
(7% of Group total)
(SEK million)
2015 2016 2017 2018 2019
160
120
80
40
0
150
155
84
100
88
Operating profit per kilo
(SEK)
2015 2016 2017 2018 2019
0.60
0.50
0.40
0.30
0.20
0.10
0.00
0.50
0.51
0.30
0.36
0.33
Technical Products & Feed