Cloetta Fazer shows continued Nordic growth

· First quarter sales rose to MSEK 728 (717) · Sales of the Top 12 brands were up by 8 percent · Operating profit amounted to MSEK 66 (99) · Operating profit excluding non-recurring items was MSEK 77 (90)

“The drop in operating profit is mainly due to higher selling and marketing expenses,” says Cloetta Fazer’s Managing Director and CEO Karsten Slotte. “One consequence of the increased focus on our prioritised brands and new product launches is that costs for media campaigns and other sales and marketing activities have risen.” The Group’s Top 12 brands continued to perform well during the first quarter of the year. The Nordic market accounted for most of the period’s 8 per cent growth, with sales up by 11 per cent in Finland and 7 per cent in Sweden. Sales of the Top 12 brands have also increased in Denmark and Norway during the quarter. “The launch of Kexchoklad Snacks – and the strong media focus on the Swedish National Alpine Ski Team, which we sponsor – were key factors behind the very positive development for the Kexchoklad brand during the quarter,” adds Karsten Slotte. “Another brand that rose sharply over the preceding year was Dumle, where Dumle chocolate milk mix and the launch of line extensions contributed to higher sales.” “The focus on our Top 12 brands has continued to generate successful results. At the same time, the streamlining of our production structure is giving rise to non-recurring expenses. The objective is to enhance our efficiency. This combination of marketing and production investments will further strengthen Cloetta Fazer’s position in an increasingly competitive market,” concludes Karsten Slotte.