Speciality vegetable oil manufacturer AAK has announced a fall in profits for the second quarter. But the company said the trend for less expensive vegetable oil solutions fits well with its strategy for growth.
The Swedish firm, which has its UK base in Hull, revealed falling operating profit of SEK25m (£2.15m) in the second quarter, with a marginal drop in sales to SEK4,045m (£348.62m) from SEK4,067m (£350.52m) last year.
Its food ingredients business saw operating profit rise by 22% to SEK74m (£6.37m). However, its chocolate and confectionery fats business has been hit heavily by the recession, with operating profit falling to SEK55m (£4.74m) (2008: SEK105m/£9.05m).
The firm announced that additional preliminary insurance compensation of SEK70m (£6.03m) had been received, in relation to “business interruption” in 2008 and 2009.
AAK said that, within food ingredients, it has experienced a marked trend towards the substitution of more expensive products with less expensive value-added vegetable oil solutions. “This aligns very well with AAK’s Group strategy and enhances growth,” said the firm, which added that the trend for health-improving solutions continues to be strong.