AAK (AAK) Q3 2025 earnings summary

Executive summary

• Operating profit grew 9% at fixed FX and excluding the Hillside divestment, with strong profitability and targeted actions to strengthen volumes underway.

• Sequential volume growth of 4%, but a 2% year-over-year decline, mainly due to the Hillside divestment and softness in Chocolate and Confectionery Fats.

• Profitability remained strong, with operating profit per kilo reaching SEK 2.47, up 5% (12% at fixed FX), driven by internal optimization and high sales of specialty solutions.

• Operating cash flow was SEK 542 million, with net debt/EBITDA at 0.61 and return on capital employed at 21.6%.

• Focused initiatives and margin discipline are in place to drive volume growth and maintain profitability.

Financial highlights

• Operating profit: SEK 1,260 million (+2% YoY excl. Hillside, +9% at fixed FX and excl. Hillside).

• Volumes: 510,000 MT (-7% YoY, -2% YoY excl. Hillside), with sequential growth of 4%.

• Operating profit per kilo improved to SEK 2.47, up 5% (12% at fixed FX), excluding Hillside.

• Operating cash flow was SEK 542 million; free cash flow SEK 221 million.

• CapEx for the quarter was SEK 321 million; full-year estimate remains SEK 1.25 billion.

Outlook and guidance

• Management remains prudently optimistic about long-term potential and committed to 2030 aspiration.

• Executing targeted initiatives to strengthen volume performance, focusing on commercial excellence and deeper customer engagement.

• No material impact expected from West African shea kernel export restrictions due to diversified sourcing and local partnerships.

• No material financial impact expected from recent operational incidents or supply chain disruptions.