Embracing a plant-powered future
April 2024
During 2023, we exceeded expectations, progressing rapidly towards our sustainability targets and 2030 aspiration. We had strong growth in our operating profit per kilo, and despite declining volumes, we surpassed our financial target of an average operating profit growth of around ten percent. Operating profit, excluding items affecting comparability, increased by 43 percent compared to 2022. This reinforces our vision: to be the first choice for plant-based oil solutions.
AAK’s portfolio strategy targets and prioritizes high-value opportunities and optimizes our core business. Several milestones have been achieved during 2023 to realize our strategic aspiration.
Invest in continued growth
We continue to invest in the Chocolate & Confectionery Fats segment, which continues its growth. AAK has invested in new capacity and production capabilities and continued to innovate and launch products such as the premium cocoa butter substitute compound CEBES™ Choco 15. In Special Nutrition and Health, AAK continues to develop innovative health solutions. In September 2023, AAK was awarded a research grant together with Maastricht University, The Netherlands, to support a study aiming to mitigate type 2 diabetes and related health conditions such as obesity.
Optimize for value creation
Bakery, Dairy, and Foodservice are large and fragmented regional markets. Yet they do have many sub-segments and regional pockets of high-value application opportunities. The AAK strategy is to optimize the portfolio mix and strategy to capture and grow the higher-value sub-segments effectively. During the year, the dedicated portfolio mix optimization efforts have resulted in the strong development of the operating profit in Bakery and Dairy.
Bet for the future
AAK's bets for the future are within Plant-based Foods, Personal Care and Technical Products. During the year, AAK has continued to help customers innovate more plant-based food through our innovation centers, engaging with start-ups and leading industry partners to explore new food solutions. In October 2023, AAK co-hosted a MISTA innovation session called “Growth Hack” to help accelerate sustainable solutions.
AAK continues to gain recognition for AAK’s leadership position in the transition to more sustainable materials in Personal Care, and was in October 2023 named the winner of the Sustainable Beauty Award in the Sustainability Pioneer category.
The weakened economy impacts consumer behavior and end-market demand, yet we have shown double-digit EBIT growth both in Plant-based Foods and Personal Care the past year.
Maintain and cultivate
We will continue to grow and develop regional strongholds in the “Maintain and cultivate” section of our portfolio. For example, we continue to develop our value propositions and capabilities in Natural Emulsifiers. Meanwhile, in Feed and Fish Feed, we serve the market with strong value propositions and abilities connected to regional market opportunities.
