Cloetta Fazer reports strong fourth quarter
Cloetta Fazer’ sales for the fourth quarter of 2007 rose by 12 per cent to SEK 1,110 million (994). Operating profit before one-time items was SEK 156 million (136), a year-on-year increase of 15 per cent. Operating margin was 14.1 per cent (13.7).
The Board proposes an increase in the regular dividend to SEK 7.00 (6.50) and an extra dividend of SEK 3.00, for a total of SEK 10.00.
“Cloetta Fazer delivered healthy earnings growth in the important fourth quarter compared to the same period of last year,” says the company’s CEO Jesper Åberg. “The successful Christmas sales in both Sweden and Finland, as well as the Baltic and Russia, contributed to the period’s strong performance. Thanks to robust sales, we were able to increase our profit for the quarter.”
Jesper Åberg announces that the company will introduce price increases at the beginning of 2008 in response to a sharp rise in raw material costs during 2007.
Sales in the Nordic market were up by 9 per cent and sales in the non-Nordic markets rose a full 45 per cent to SEK 100 million (69) for the fourth quarter.
“Although the increase primarily in the Baltic countries and Russia has taken place from a low level, these are markets with enormous potential,” continues Jesper Åberg.
“Our recently completed acquisitions of Karamellpojkarna and Fennobon are also important steps towards realisation of our growth target,” says Jesper Åberg.
Sales for the full year improved by 6 per cent, or SEK 179 million, to SEK 3,253 million (3,074). Operating profit excluding restructuring charges was SEK 335 million (353), equal to an operating margin of 10.3 per cent compared to 11.5 per cent for the prior year. Net profit was SEK 250 million (262).
The Group’s long-term goal over a three-year period is to grow by 25 per cent, of which 10 per cent organically.
“It is therefore vital to expand in the nearby geographical markets, where the Baltic countries, Russia, Norway and Denmark have high priority,” concludes Jesper Åberg.