Aak Ab · OMXSTO:AAK
Aak Ab — Q4 2023 Earnings Presentation
15 slides from Aak Ab's earnings presentation, Feb 7, 2024
Slide 1: Fourth quarter and Full-year report 2023
Fourth quarter and Full-year report 2023 Johan Westman, CEO Tomas Bergendahl, CFO The Co-Development Company 1
Slide 2: Agenda
Agenda 1) Highlights Q4 2) Selected events 3) Business & financial update 4) Concluding remarks 5) Q&A 2
Slide 3: Forward-looking statements
Forward-looking statements This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements i
Slide 4: Closing out the year with strength
Closing out the year with strength Highlights Q4 2023 Growth and returns Q4 2023 • Operating profit increased by 50 percent at fixed foreign exchange rates. Volume Operating profit • Operating profit per kilo increased 57 percent at fixed foreign exchange rates, partly driven by internal production
Slide 5: Selected events
Selected events SBTi targets approved Sensory innovation award finalist at FiE with CEBES™ Choco 15 • In December, we received notification that our emission reduction • AAK's innovation, CEBES™ Choco 15 was named Sensory Innovation targets had been approved by the Science Based Targets Initiative (
Slide 6: Food Ingredients
Food Ingredients SEK million Operating profit SEK million Operating profit Revenue Operating profit 800 3,000 Volume per kilo SEK million SEK million 685 SEK 700 2,500 600 -3% -23% +47% +52% 500 465 2,000 361 350 8,863 685 1.96 400 1,500 300 6,815 1,000 465 1.29 200 500 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 7: Chocolate & Confectionery Fats
Chocolate & Confectionery Fats SEK million Operating profit SEK million Operating profit Revenue Operating profit 500 481 2,200 Volume per kilo SEK million SEK million 2,000 SEK 400 1,800 1,600 +56% +59% 308 -2% -7% 300 1,400 1,200 125 123 3,672 481 3.91 1,000 3,432 200 800 600 308 2.46 100 400 200
Slide 8: Technical Products & Feed
Technical Products & Feed Operating profit Operating profit SEK million SEK million Revenue Operating profit Volume per kilo 150 350 SEK million SEK million SEK 300 100 -12% -25% -41% -33% 100 250 85 782 100 1.18 200 75 59 588 50 150 0.79 59 100 0 50 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 9: Strong cash flow driven by earnings and a stable working capital development
Strong cash flow driven by earnings and a stable working capital development Cash flow Q4 2023 Comments • Cash flow from inventory was negatively (661) affected by higher inventory levels partly (987) (-40) driven by seasonal sourcing patterns. (-276) 1.353 1.335 • Cash flow from receivables was pos
Slide 10: Return on Capital Employed increase on strong operating profit
Return on Capital Employed increase on strong operating profit % 20,0 ROCE end Q4 2023* 19,0 19,1 18,0 19.1% 17,0 16,0 EBIT LTM Capital 15,0 employed* 14,0 SEK 4,116 SEK 21,555 13,0 million million 1,0 0,0 Q4 20 Q2 22 Q3 22 Q2 23 Q3 23 Q4 23 Q4 21 Q1 23 Q4 22 Q1 22 Q2 21 Q3 21 Q1 21 * ROCE: Return o
Slide 11: Net debt/EBITDA reduction on strong profit growth and reduced net debt
Net debt/EBITDA reduction on strong profit growth and reduced net debt Net debt/EBITDA 3.00 2.50 2.00 1.50 1.00 0.50 0.49 0.00 Q4 20 Q4 23 Q1 23 Q2 23 Q3 23 Q1 21 Q3 21 Q2 21 Q1 22 Q4 21 Q2 22 Q3 22 Q4 22 The Co-Development Company 11 11
Slide 12: Structural drivers behind our profitability improvement
Structural drivers behind our profitability improvement Program Progress Impact Profitability High. Cost savings, capacity liberation Production process optimization and enhanced quality High. Capacity optimization, higher sales Portfolio & price management of speciality solutions and pricing Low. I
Slide 13: Concluding remarks
Concluding remarks • Closing out the year with strength. • Volumes declined year-over-year but continued to improve sequentially. • The strong profit growth was partly driven by internal production process optimization and partly by better portfolio & price management. In addition, the performance w
Slide 14: Q&A
Q&A 14
Slide 15: Making Better Happen™
Everything we do is about Making Better Happen™