Cloetta Fazer reports strong first quarter sales

Cloetta Fazer’s first quarter sales amounted to SEK 732 million (728). Operating profit including one-time expenses for the first quarter improved to SEK 68 million (66). Aside from successful sales in the Swedish and Finnish home markets, the company reported sales growth in Russia, the Baltic countries and Norway, despite the fact that the important Easter sales fell later in the year. However, sales were down in Poland.

“Cloetta Fazer continued its successful performance in the Swedish and Finnish home markets during the first quarter with growth in sales, increased market shares and improved earnings,” says CEO Karsten Slotte. “Our new distributor in Norway, Galleberg, has got off to a good start and sales on the Norwegian market were up by a full 27 percent. Our export organisation has established a standardised international product range and has succeeded in boosting sales in the Baltic countries and Russia, although this initiative also led to higher costs for marketing and sales activities, primarily in Russia,” he continues. Cloetta Fazer’s twelve prioritised brands showed continued growth and a number of new products were introduced. In the premium segment, the Karl Fazer Exclusive series was launched in Finland during 2005 and in Sweden during the first quarter of 2006. The products consist of three different varieties of an exclusive thin chocolate bar − dark chocolate and mocha flavoured, both containing 70 per cent cocoa, as well as milk chocolate. The launch has contributed to a powerful surge in sales of this brand. In February, Center Dark with a 70 per cent cocoa content was launched in Sweden as both a countline and roll. “Interest in semi-sweet chocolate with a high cocoa content is growing steadily and the previously mentioned launches are a response to this demand,” says Karsten Slotte. The market reception has been very positive.” “I feel that we are well poised for the future thanks to our strong brands, exciting product launches efficient production structure,” concludes Karsten Slotte. Operating profit before one-time expenses was SEK 74 million (77), despite start-up costs in the Polish and Russian markets. The average number of employees decreased to 1,535 (1,914) compared with corresponding period of last year as a result of the completed restructuring measures and rationalisations.