AAK AB (publ.)

Q3 performance: resilient volumes, weaker profitability - Volumes flat YoY; Food Ingredients -1% (mainly food service & bakery pressure) offset by CCF +1% and Technical Products & Feed +1%. - Profitability fell: Group operating profit per kilo -8% to SEK 2.27 and operating profit -8% to SEK 1.154bn (vs SEK 1.260bn prior year). - Management attributed the margin decline mainly to price competitiveness/contract dynamics and regional mix; specifically Food Ingredients drove ~75% of the decline (~SEK 79m).

Business-area signals (what investors should watch) - Food Ingredients: EBIT/kg -9% to SEK 2.18; at fixed FX -10%. Decline driven by bakery & dairy profitability plus soft food service (esp. UK). Karlshamn-related issue noted as resolved (impact seen in Q2, not in Q3). - Chocolate & Confectionery Fats (CCF): Volumes +1%, but EBIT/kg -6% to SEK 4.04 (fixed FX -8%). Currency helped slightly; underlying pressure linked to more competitive pricing and subdued chocolate consumption (units also lighter due to shrinkflation). - Technical Products & Feed: Volumes +1%, but EBIT/kg -32% to SEK 0.45; candles weak drove the drop (operating profit SEK 32m vs SEK 46m, -31%).

Cash flow & balance sheet: strong and improving support for capital returns - Operating cash flow SEK +1.496bn in Q3; ~SEK 4bn YTD; 6th consecutive quarter of positive operating cash flow. - Net debt/EBITDA: 0.56 (very strong, slight improvement from 0.68 in Q2), giving financial flexibility. - CapEx SEK 402m in Q3; YTD just under SEK 1.1bn; FY2026 CapEx expected ~SEK 1.5bn or slightly below (up vs 2025). - Free cash flow SEK +1.1bn in Q3; ~SEK 2.9bn YTD. - Dividend/buyback: strong leverage reflected even after dividend in Q2 and share buyback initiation in Q2 continuing into Q3 (no new explicit Q3 buyback announcement in the excerpt, but capital-return context is positive).