Reasons to invest in AAK
1. Above the market growth
AAK has over the past decade been able to grow faster
than the underlying markets in our focus areas – speciality
and semi-speciality solutions in Food Ingredients
and Chocolate & Confectionery Fats. With our new
strategic direction, we will continue to support the
company’s growth journey. Market data* shows that
in terms of volumes the oils and fats market in total is
growing at approximately 3 percent with the speciality
market growing even faster.
With our recent greenfield investments and our
latest acquisitions, we have continued to strengthen
our geographic footprint. Through this expansion we
are represented in regions where both population
and urbanization are on the increase – demographic
changes that present substantial market opportunities.
We also see a growing middle class with a higher
income and an increased spending power as well as a
growing senior population as people live longer.
2. Average 10 percent year-over-year operating profit
improvement
Between 2010 and 2019, AAK has annually increased
its operating profit by 11 percent on average. Based
on our high go-to-market activity (sales and customer
innovation) and new product development, the very
solid foundation we have built over time, our strong
executive and local management, and our increased
AAK’s operating profit per quarter 2010–2019
SEK million
600
500
400
300
200
100
54
0
2010
2011
2012
2013
2014
2015
2016
2017
2019
2018
2010
2011
2012
2013
2014
2015
2016
2017
2019
2018
2010
2011
2012
2013
2014
2015
2016
2017
2019
2018
2010
2011
2012
2013
2014
2015
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2019
2018
focus on mergers and acquisitions, we see no reason to
lower that ambition.
3. Strong balance sheet supporting further growth
Despite considerable investments to increase capacity
and several acquisitions to add both capacity and new
capabilities to AAK, we have over recent years built a
very strong balance sheet with an improved equity ratio.
Combined with long-term loan agreements and our MTN
program (Medium Term Note), this has created a solid
foundation and a flexible alternative for further growth,
both organically and through selective and strategic
acquisitions.
4. Well positioned to benefit from consumer trends
Through our unique customer co-development approach
and by focusing on trends and global key drivers, AAK
is very well positioned to benefit from current consumer
trends such as health and well-being, sustainability,
premiumization, convenience, customization, and
transparency. An important example is our natural and
plant-based solutions that are on trend with consumer
demands for health and nutrition. Sustainability is
another competitive advantage as AAK is considered
a trustworthy partner with focus on traceability and
sustainability throughout the value chain. We are
furthermore well positioned in the speciality segment
in which there is a great demand for co-developed and
high-quality premium solutions.
Q1 Q2 Q3 Q4 *Transparency market research, IHS Global, 2018
178
204
220
242
287
321
381
431
460
509
164
196
211
244
281
326
368
409
454
518
231
246
273
303
331
376
431
475
526
569
251
265
292
328
343
388
435
471
516
562