Year-end report, 1 September 2010 - 31 August 2011; Lower sales but profit for Q4 on par with the previous year
Cloetta’ net sales for the fourth quarter reached SEK 193 million (213). Operating profit for the same period was SEK 0 million (-6). Net sales for the full year totalled SEK 987 million (1,061). Operating profit for the corresponding period was SEK 27 million (35) and profit after tax was SEK 18 million (22). The Board of Directors proposes an unchanged dividend of SEK 0.75 per share (0.75) plus an extra dividend of SEK 0.50 per share.
”The past year has been characterised by unusually large fluctuations,” says CEO VD Curt Petri. “In the first quarter we posted higher sales and slight improvement in profit. In the second quarter we were challenged by a tougher market that resulted in significantly lower sales and earnings. The third and fourth quarters brought a continued decrease in sales but a somewhat higher profit. Cash flow for the year significantly exceeded the year-earlier level.”
The drop in sales for the fourth quarter is partly attributable to sales of volumes from the Wedding Series in the same period of 2010.
“Our earnings have been negatively affected by aggressive competition in a grocery retail trade that saw an overall decrease in volume during 2011, but also due to lower income from products manufactured on contract,” continues Curt Petri. “We have introduced certain price increases that will have a positive impact on profit in the coming financial year and starting this autumn. At the same time, we will invest and work together with our customers to develop above all the segments where we are market-leaders, namely countlines including Kexchoklad, chocolate bags like Polly and seasonal products such as Juleskum.”
To strengthen our focus on and sales of Mums-Mums and Mandelbiskvier, Cloetta has started a collaboration with the sales company Sales Support to sell the brands that are not part of the confectionery category starting on 1 September.
”With a full-year profit that is clearly below our ambitions, we are making continued changes in our positioning, establishing new partnerships, pursuing a number of efficiency improvement projects and developing our business together with the customers, concludes Curt Petri.
The information in this press release is subject to the disclosure requirements of Cloetta AB (publ) under the Swedish Securities Market Act. The information was submitted for publication on 18 October 2011, 3:40 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 and Extra Starka. Cloetta has two production units in Sweden, one in Ljungsbro and one in Alingsås. The company’s class B shares are traded on NASDAQ OMX Stockholm.
www.cloetta.com