Cloetta Fazer expands its market shares

Cloetta Fazer has continued to expand its market shares in Sweden and Finland and reported second quarter sales of SEK 656 (661) million. Operating profit improved to SEK 54 (44) million. Excluding restructuring charges, first-half profit was down by SEK 13 million compared with the same period of last year.

“The spring’s focus on product innovations and new product launches has been highly successful and sales of the prioritised brands have continued to rise. Karl Fazer, the largest individual brand, has grown by a full 27%, partly thanks to the launch of Marianne Crisp and Karl Fazer Exclusive in 2005,” says CEO Karsten Slotte. “We are especially pleased with the improved sales in Norway after changing our distributor to Galleberg,” adds Karsten Slotte. ”Sales for the first half of the year were up by 25% compared with the same period of 2005.” The high rate of new product launches led to increased marketing expenses. Furthermore, profit was affected by higher raw material costs than in 2005. The global market price for cocoa rose during the spring due to factors such as rising demand for certain cocoa grades. “A high rate of innovation and new product launches with wide consumer appeal is vital in continuously advancing our market position. We have several interesting product launches lined up for the autumn to support this ambition,” concludes Karsten Slotte. Net sales for the first half of 2006 reached SEK 1,388 (1,389) million. Operating profit was SEK 122 (110) million. Excluding restructuring charges, profit amounted to SEK 128 (144) million and operating margin to 9.2% (10.3%). Earnings per share were SEK 3.88 (3.15).