Net sales were up to 4.4bn SEK (€485m) mainly due to increased raw material prices. Volumes were up 5% as a result of the acquisition of Golden Foods in July 2011. The Golden Foods business, now renamed AAK Louisville, is a North American producer of speciality fats and oils for bakery. The acquisition has allowed AAK to produce additional volumes of between 70,000 to 80,000 MT.
Company CEO Arne Frank said: “This acquisition significantly strengthens AAK’s ability to supply existing and new customers with a broader portfolio of speciality oils and fats solutions. As one of the largest speciality oil markets in the world, expansion in the US is also particularly exciting.”
“The acquisition is expected to have limited impact on the 2011 group operating profit, with benefits beginning from the first quarter of 2012.”
Operating profit was up 6% to SEK 246m (€27.1m) on the same quarter last year.
The company saw its strongest growth in its food ingredients segment where operating had risen 15% to SEK 143m (€15.7m) on last year mainly due to an increase in portion of high value products such as bakery, dairy and infant nutrition.
AAK also experienced strong growth for chocolate and confectionery fats. Operating profit for this area of the business had increased 15% on last year to SEK 112m (€12.3m) partially as a result of higher volumes from the Golden Foods acquisition.
“During the third quarter of 2011 volumes increased by 5% due to increased speciality volume, including the impact of the Golden Foods/Golden Brands acquisition. Commodity volumes continued to decline, consistent with previous quarters. The largest commodity volume reduction was in the UK, which as earlier announced, is being restructured for improved focus on speciality products.”
Performance was best in the US, continental Europe and in Mexico, where confectionery fats had overseen growth.