Johan Westman0:02
Thank you, Johan, for announcing me, and thank you, Karsten, for paving the way. I hope you all appreciated getting knowledge about oils and fats, as that is what we do and excel at. Now, let's talk about AAK's earnings and how we drive the company forward.
The last one and a half to two years have been unprecedented and challenging, with cost inflation and disturbances. AAK has managed through these difficulties using contingency plans, a decentralized organization, and focusing on safety and the global food supply chain. We are now back to earning money, with growth from a pre-COVID perspective.
AAK reports into three business areas: food ingredients, chocolate and confectionery fats, and technical products and feed. Food ingredients include dairy, bakery, infant formulas, and plant-based food. Chocolate and confectionery involve cocoa butter replacements and filling fats. Technical products and feed cover animal nutrition and sustainable solutions for candles, detergents, etc. We have about 4,000 employees, turnover over 30 billion SEK, and earnings of 2.3 billion SEK.
Two years ago, we launched a new strategy, concluding we are in a good space with oils and fats. We declared the need for precision and launched an industry-focused, portfolio-based strategy with four categories: invest for growth, optimized performance, maintained current strategy, and bets for the future.
Over the past year, in invest for growth, we continued co-development with Mars on sustainability in West Africa, expanded market reach, invested in production capacity in Oregon and Denmark, and opened a new plant in China for Opoia. We added a DHA partnership. In optimizing performance, we consolidated capacities in Europe for bakery, worked on product and price management, and streamlined food service.
For bets on the future, health and nutrition are key, and plant-based food is growing. We invested in a venture capital fund, partnered with Mista, and are building a customer innovation center in the Netherlands. For maintained current strategy, we invested in natural emulsifiers, acquired lecithin, improved personal care position, and upcycled in technical products and feed.
We show volume breakdown for food ingredients, demonstrating AAK's diversified pillars. Dynamics vary by industry. Year-on-year, we have significant growth in chocolate and confectionery, plant-based food, and candle waxes, driven by sustainability and health, while growth is lower in bakery, dairy, and industrial solutions.
Consumer trends include health and well-being, sustainability, indulgence, and premiumization. AAK is committed to its purpose 'Making Better Happen,' focusing on better sourcing, operations, and solutions. We support no-deforestation initiatives and join forces with suppliers, customers, governments, and consumers.
M&A has been and continues to be an opportunity for growth. We look for geographical expansion, bolt-on acquisitions, excess capacity, and technology and capabilities to deliver high value-added solutions.
Two years ago, we aimed to make AAK a purpose-driven company. We developed the purpose 'Making Better Happen' during COVID, engaging over a thousand colleagues, and it is now being rolled out in behaviors and leadership programs.
We reiterate our target of 10% year-on-year EBIT growth. Success rests on market growth, structural growth with M&As, optimization of cost structure and segments, and focus on high value-added solutions. Over time, the proportion of each pillar will differ, but we need them all to deliver the ten percent.
