AAK – Specialty ingredient supplier AAK has reported a recovery of its Chocolate & Confectionery Fats business of AAK which  was negatively impacted by COVID-19 in 2020. 

That business operating profit soared 12% to SEK 971 million (US$106 million) in the fiscal year ended Dec. 31, 2021, from SEK 865 million (US$94.85 million) in the previous fiscal year. 

 Volume jumped 16% to 519,000 tonnes from 449,000 tonnes while Net sales increased 27% to SEK 10.12 billion (US$1.11 billion) from SEK 7.95 billion (US$087 billion). 

In fiscal 2020, when compared to fiscal 2019, operating profit in the Chocolate & Confectionery Fats business increased 9%, but net sales and volume both declined by 2%. 

Companywide, operating profit for the fiscal year however dipped 4% to SEK 2.09 billion ($228 million) from SEK 2.17 billion.  

Net sales were SEK 35.45 billion ($3.87 billion), up from SEK 27.93 billion while total volume increased 5% in the fiscal year to 2.312 million tonnes. 

Investment in sustainability 

Meanwhile, the specialty ingredient supplier is planning to will invest SEK 500 million ($54.7 million) on biomass boilers at its production plant in Aarhus. 

AAK says the investment will enable it to add two new boilers which will be fueled by Shea meal, a byproduct of shea-based ingredients.  

The plant has run a small biomass boiler for five years. Combined, the three boilers are expected to reduce CO2 emissions by more than 45,000 tons per year, according to AAK.  

This would reduce AAK’s total scope 1 emissions by 16%. Scope 1 emissions are direct greenhouse gas (GHG) emissions that occur from sources controlled or owned by a company.  

AAK expects to complete the project by the end of 2023. 

“AAK is fully committed to accelerate its reduction of greenhouse gas emissions, and this initiative will definitely result in true progress,” said Johan Westman, president, and chief executive officer of Aarhus-based AAK. 

AAK expects the transition to shea meal to virtually eliminate the need for fossil fuel,  generating the company yearly savings of up to SEK 100 million (US$10.9 million).

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