Oct 16, 2009 - Operating profit for Cloetta's first year of operations was somewhat higher than predicted in the previously issued forecast.
“Sales of Cloetta’s products rose by 6% during the financial year,” says Cloetta’s Managing Director and CEO Curt Petri. Thanks to this positive sales growth for Cloetta’s own products, we achieved an operating profit excluding items affecting comparability of SEK 8 million. The items affecting comparability are attributable to the demerger of Cloetta Fazer.”
Net sales for the full year amounted to SEK 1,184 million (1,387). These figures include the sale of Fazer’s products on the Swedish, Norwegian and Danish markets until 31 December 2008. Sales of Cloetta’s own products rose by close to 6%. Net sales for the fourth quarter reached SEK 212 million, of which sales of Cloetta’s own products grew by 2%.
“As previously announced, Cloetta’s net sales have decreased by 40% as a result of the demerger of Cloetta Fazer. This has had a negative impact on profit, since it has not been possible in the short term to cut costs in an amount equal to the decrease in sales,” says Curt Petri.
Earnings have also been affected by escalating raw material costs that have risen due to weakening of the Swedish krona during the year. Alongside continuous efficiency improvement measures, the company therefore announced additional price increases in the fourth quarter.
“After a first year that was largely marked by the demerger and in view of our new focus on Cloetta and Cloetta’s brands, we are now gathering our operations in Ljungsbro. Bolstered by our unique history and portfolio of strong product brands, our goal now is establish a position among the Nordic region’s leading confectionery companies,” concludes Curt Petri.