Yuan Lim's questions to ARHUF leadership • Q4 2024
Question
Asked for clarification on end-market growth rates, the potential impact of U.S. regulations on seed oils and tariffs, and for an update on the progress of the company's optimization program.
Answer
End markets for plant-based oils and fats see low single-digit growth, which AAK aims to outgrow by focusing on specialty ingredients. The company is confident in its ability to manage potential regulatory changes or tariffs, noting that its U.S. operations source primarily from Southeast Asia, minimizing exposure to discussed tariffs on Latin American goods. The optimization program has now covered over 70% of installed capacity and is an ongoing, iterative process that is expected to contribute significantly to the 2030 profitability aspiration of over SEK 3 per kilo.