AAK AB (publ.)

Q3 2026 headline performance (mixed): resilient volumes, weaker profitability - Group volumes flat YoY (resilient despite subdued consumer sentiment). - Operating profit down 8% YoY to SEK 1,154m; operating profit per kilo down 8% to SEK 2.27/kg (profitability below last year). - Main driver: Food Ingredients contributed ~SEK 79m of the decline (about 75% of the total margin drop), driven by negative price/margin development across bakery, dairy, and food service.

Segment developments: where margins fell vs. held up - Food Ingredients: volumes -1% YoY; operating profit per kilo -9% to SEK 2.18/kg (also noted FX slight positive, but fixed FX profit -10% to -11%). Profit down 10% to SEK 687m. - Chocolate & Confectionery Fats (CCF): volumes +1% YoY; operating profit per kilo -6% to SEK 4.04/kg (FX slight positive). Profit down 5% to SEK 500m at fixed FX -5%—reflects more competitive pricing and weaker end-demand (including unit shrinkflation). - Technical Products & Feed: volumes +1% YoY; operating profit per kilo -32% to SEK 0.45/kg due to candle business weakness; operating profit SEK 32m vs SEK 46m prior year (-31%).

Cash flow & balance sheet strength (good for investors) - Operating cash flow: SEK +1.496bn in Q3; close to SEK 4bn YTD; six consecutive quarters of positive operating cash flow. - Working capital helped: inventory decreased (SEK -268m, mainly lower palm and seasonal inventory), partly offset by continued raw material price increases. - Net debt/EBITDA: 0.56 (strong financial flexibility); ROCE: 19.1%. - CapEx: SEK 402m in Q3; YTD just under SEK 1.1bn; full-year 2026 CapEx expected ~SEK 1.5bn or slightly above 2025. - Free cash flow: SEK +1.1bn in Q3; close to SEK 2.9bn YTD. - Dividends / buybacks: shareholders were reminded that ordinary & extraordinary dividend were paid in Q2 and the share buyback started in Q2 and continued into Q3.