AAK AB on Thursday reported a higher second-quarter profit despite a drop in sales volumes, as the company focused on its product mix and operational efficiency.
The Swedish plant-based oils maker said profit for the period, excluding items affecting comparability, rose to 851 million Swedish kronor from 809 million Swedish kronor a year earlier.
Sales volumes for the quarter declined by 2% to 490,000 metric tons, excluding the effect of a divestment, while operating profit, excluding certain items and currency effects, increased by 16%, the company said.
The company recognized a one-time restructuring cost of 250 million Swedish kronor during the quarter related to its previously announced 'Fit-to-Win' cost performance program.
"At the same time, we are accelerating innovation and strengthening collaboration with our customers to stay ahead of their needs and deliver solutions that drive value — efforts that also aim to offset the softer volume development currently impacting parts of both our business and the industry at large," said President and CEO Johan Westman.
Operating profit in its Food Ingredients segment rose 4% to 764 million Swedish kronor, while the Chocolate & Confectionery Fats division also saw a 4% increase to 450 million Swedish kronor.
The results follow a first quarter where AAK also posted a decline in volumes while maintaining profit levels, indicating a continuing trend of prioritizing profitability over volume.
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