AAK Annual Report 2018

19 Bakery By providing solutions to both new and existing customers, our Bakery segment reported organic volume growth during 2018. Our bakery strategy is in full execution with strong leadership, enabling us to exchange best practices and grow as a truly global business. Solutions AAK solutions include dairy fat alternatives, shorten- ings, laminating fats, margarines, flaked shortenings, melanges, and many other tailor-made products that meet customer requirements for sensory, functionality and process efficiency. Trends Some of the major bakery trends are sugar and calorie reduction, low saturated fats, waste reduction, and shelf-life extension. In addition, consumers demand more and more healthy and sustainable solutions. New products There have been several new customer-specific prod- ucts created through our co-development approach, among them solutions that help customers meet market demand, such as sugar reduction. Future growth Demand is growing worldwide, especially in Asia, while volume growth is more limited in Europe and the US. In these mature markets we see a greater need for more advanced and complex solutions. Plant-based is a trend that will affect Bakery and with our experience and customer base, we are well placed to provide truly plant-based bakery products. 2014 2015 2016 2017 2018 Volumes, thousand tons 1,117 1,258 1,325 1,447 1,508 Net sales, SEK million 11,509 13,556 14,707 17,665 18,468 Operating profit, SEK million 803 903 996 1,107 1,205 Operating profit per kilo, SEK 0.72 0.72 0.75 0.77 0.80 Volumes (68% of Group total) (Thousand tons) 2014 2015 2016 2017 2018 1,600 1,400 1,200 1,000 800 600 400 200 0 1,508 1,447 1,325 1,258 1,117 Operating profit (57% of Group total) (SEK million) 2014 2015 2016 2017 2018 1,300 1,200 1,000 800 600 400 200 0 Operating profit per kilo (SEK) 2014 2015 2016 2017 2018 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 0.80 0.77 0.75 0.72 0.72 803 903 996 1,107 1,205