AAK (AAK) Q4 2024 earnings summary

Executive summary

• Operating profit grew 11% in Q4 2024 year-over-year, following a 47% increase in the same period last year, despite a 1% decline in volumes; full-year operating profit up 19% to SEK 4,896 million, exceeding long-term targets.

• Volumes declined 1% in Q4 but rose 2% for the year; profitability per kilo improved, driven by optimization and favorable market conditions.

• ROCE reached 22.4% on the back of robust operating profit.

• Board proposes a dividend of SEK 5.00 per share for 2024, a 35% increase from last year.

• Continued focus on optimization, innovation, and sustainability, including a new biotechnology center, major sustainability award, and significant CO2 reductions at the Aarhus site.

Financial highlights

• Q4 operating profit: SEK 1,268 million (+11% YoY); full-year: SEK 4,896 million (+19% YoY).

• Q4 operating profit per kilo increased 13% year-over-year (16% at fixed FX) to SEK 2.34; full-year per kilo up 16% to SEK 2.25.

• Q4 operating cash flow was SEK 118 million, impacted by seasonal sourcing, higher raw material costs, and EUDR-related inventory buildup.

• Net debt/EBITDA at 0.29, reflecting a strong balance sheet and improved leverage.

• Return on capital employed (ROCE) at 22.4% (rolling 12 months).

Outlook and guidance

• Raised 2030 profitability aspiration to above SEK 3 per kilo, aiming to grow volumes faster than the market.

• Focus remains on margin expansion, optimization, and selective volume growth.

• Management maintains prudent optimism for 2025, focusing on sustainable growth and innovation.

• Restructured sourcing agreements expected to deliver long-term benefits, with a one-time negative cash flow impact of SEK 500–600 million in Q1 2025.

• No material changes in risk exposure anticipated beyond normal business operations.