AAK Q3 operating profit falls as demand stays subdued

Overview

• Sweden plant-based oils maker's Q3 volumes stable yr/yr, operating profit down 8%

• Net profit and EPS declined compared to last year

• Operating cash flow increased sharply yr/yr

Outlook

• Company did not provide specific guidance or outlook for the coming quarters or year

Result Drivers

• SUBDUED DEMAND - Co said market conditions and consumer sentiment remained subdued, impacting profitability

• CURRENCY EFFECT - Positive currency translation partly offset decline in operating profit

• STRONG CASH FLOW - Co reported sharply higher operating cash flow compared to last year

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for AAK AB (publ) is SEK240.00, about 25.9% above its October 22 closing price of SEK190.70

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Oct 22 - Sweden's Axfood Q3 EBIT beats on volume growth

• Oct 22 - Switzerland's Nestlé maintains 2026 organic growth guidance at 3% to 4%

• Oct 22 - Finland's Atria Q3 sales rise, EBIT flat on pork export ban

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)