Interim report Q3, 1 September 2010 – 31 May 2011: Lower sales and higher profit for the third quarter
Cloetta’s sales for the third quarter amounted to SEK 237 million (267). Operating profit for the quarter rose to SEK 5 million (4). Sales for the nine-month period from September 2010 to May 2011 totalled SEK 794 million (848). Operating profit for the corresponding period was SEK 27 million (41).
"Profit improved somewhat in the third quarter compared to the previous year. We also recorded a strong cash flow from operating activities during the period," comments Cloetta’s Managing Director and CEO Curt Petri.
At the end of 2010 and so far this year, the grocery trade has shown weak development that has also affected confectionery sales. The second quarter’s slow confectionery market was followed by a third quarter with essentially unchanged conditions*. Cloetta’s sales for the quarter were down compared to the previous year mainly due to the fact that the year-earlier period included sales of products from The Official Wedding Series. Furthermore, sales of products manufactured on contract and in the pick-and-mix segment were lower than in the previous year.
"In our internal efforts we have increased the focus on efficiency programmes throughout the value chain. We are conducting discussions with our customers in areas such as category development, which is creating the conditions for us to maintain a high pace in product range optimisation, generate profitability for Cloetta and our customers and provide our consumers with interesting new products, adds Curt Petri.
"Cloetta and Kexchoklad have signed on as new sponsors of the Swedish Beach Tour beach volleyball competition for the summer of 2011. The tour will give Kexchoklad a clear and active presence throughout Sweden during the summer months, which will be a valuable complement to our marketing activities during the ski season," says Curt Petri.
* According to Nielsen
The information in this press release is subject to the disclosure requirements of Cloetta AB (publ) pursuant to the Swedish Securities Market Act. The information was submitted for publication on 23 June 2011, 01:30 p.m. CET.
For further information contact
Curt Petri, CEO, mobile 46 70-593 21 69
Kent Sandin, CFO, mobile 46 70-582 77 95
About Cloetta
Founded in 1862, Cloetta is the oldest confectionery company in the Nordic region. The company’s most important brands are Kexchoklad, Center, Plopp, Polly, Tarragona, Guldnougat, Bridge, Juleskum, Sportlunch, Extra Starka and the Good chocolate bar series. Cloetta has two production units in Sweden, one in Ljungsbro and one in Alingsås. For the period from 1 September 2009 to 31 August 2010, Cloetta posted net sales of SEK 1,061 million. The company’s class B shares are traded on NASDAQ OMX Stockholm.
www.cloetta.com