Alexander Jones's questions to ARHUF leadership • Q4 2024
Question
Asked if the full effect of cocoa reformulation has been realized or if more outperformance is possible, whether volume optimization in Food Ingredients will continue to be a headwind, and for more details on the restructured sourcing agreements.
Answer
The company believes reformulation activities are ongoing due to high cocoa prices, presenting continued opportunities for outperformance. The volume optimization in Food Ingredients was a tactical decision for the quarter and should not be extrapolated as a continuing trend; the focus remains on a healthy balance of value over volume. The restructured sourcing agreements are expected to deliver long-term financial and operational benefits, but will have a one-time negative working capital impact of SEK 500-600 million in Q1 2025 due to adjustments in transportation timing and payables.