Cloetta Fazer shows strong performance in Finland and Sweden

Cloetta Fazer’s net sales in 2004 totalled MSEK 3,024 (3,030). Operating profit was MSEK 362 and included restructuring charges and other non-recurring items of MSEK –38. Excluding these effects, operating profit amounted to MSEK 400 (390) and profit after financial items to MSEK 416 (408).

Sales of Cloetta Fazer’s top 12 brands were up 2 per cent in the fourth quarter and 5 per cent for the full year 2004. The company continued to perform well in its main markets in Sweden and Finland throughout the fourth quarter. Operating profit for the fourth quarter, excluding restructuring charges and other non-recurring items, was MSEK 160 (176). “The drop in fourth quarter earnings is mainly due to an increase in marketing activities, which is part of the Group’s strategy to strengthen the position of our prioritised brands,” says Cloetta Fazer’s CEO, Karsten Slotte. A focus on the prioritised top 12 brands and a more active marketing approach contributed to a 28% increase in sales of Dumle on the Swedish and Finnish markets during the year. In addition, high-impact sales promotion and media campaigns for Kexchoklad in Sweden and Fazer Blue in Finland generated robust growth for these two brands. “Our strategy to concentrate on the strongest brands has proven effective,” continues Karsten Slotte. “It has enabled us to expand our share of the Swedish and Finnish markets and raise combined sales of our top 12 brands in both relative and absolute terms.” The strongest sales growth was noted for Tutti Frutti at 19%, followed by Center at 13%, Kexchoklad and Dumle at 7% and Fazer Blue at 5%. The negative trend in Poland continued and Cloetta Fazer posted another loss in that market.