AAK Annual Report 2019

21 Bakery 2019 was another good year for Bakery. The execution of our bakery strategy to become an even stronger value-adding solutions provider for our bakery customers resulted in limited organic growth but with a clear shift in the product portfolio. We closed the year with confidence, ready to build on the solid foundation that has been established over the past three years. Solutions AAK provides a wide range of solutions for major bakery applications, such as biscuits, cookies, crackers and wafers; laminated applications/pastry; cakes and muffins; and bread, pizza and donuts. All our solutions meet customer requirements for functionality and process efficiency as well as specific consumer demands. Trends Consumers are focused on healthier and more sustain- able solutions where sugar and calorie reduction, low saturated fats, waste reduction, and shelf-life extension are key areas. New products Created through our co-development approach, we have developed many new customized products, both consumer-oriented, for example with sustainably sourced raw materials, and customer-oriented, such as production efficiency improvements. Future growth There is a growing demand for efficient and value- adding bakery solutions worldwide. To take advantage of the trend, we will continue to strengthen our position as an oils and fats specialist with deep technical industry knowledge. We will do so through specialized and dedicated resources and a strong network of regional Customer Innovation Centers and go-to-market teams to facilitate local customer penetration. 2015 2016 2017 2018 2019 Volumes, thousand tons 1,258 1,325 1,447 1,508 1,531 Net sales, SEK million 13,556 14,707 17,665 18,468 18,978 Operating profit, SEK million 903 996 1,107 1,205 1,366 Operating profit per kilo, SEK 0.72 0.75 0.77 0.80 0.89 Volumes (67% of Group total) (Thousand tons) 2015 2016 2017 2018 2019 1,600 1,400 1,200 1,000 800 600 400 200 0 1,508 1,531 1,447 1,325 1,258 Operating profit (59% of Group total) (SEK million) 2015 2016 2017 2018 2019 1,400 1,200 1,000 800 600 400 200 0 Operating profit per kilo (SEK) 2015 2016 2017 2018 2019 1.00 0.80 0.60 0.40 0.20 0.00 0.89 0.80 0.77 0.75 0.72 903 996 1,107 1,205 1,366 Food Ingredients