Sales growth generates further improvement in profit

The Cloetta Fazer Group's first quarter sales rose by around 5 per cent to MSEK 742 (710) and the improved sales volume has contributed to continued earnings growth. Profit after net financial items for the first three months of the year increased 8 per cent to MSEK 93 (MSEK 86 excluding capital gains). The operating margin exceeded the Group's target and amounted to 12.3 per cent (11.9).

"The Group has enjoyed a long period with strong earnings growth, partly owing to the acquisition of Candelia and the merger between Cloetta and Fazer Konfektyr. Our first quarter result for 2002 exceeds even our relatively ambitious goals for the merger", says Cloetta Fazer's Managing Director and CEO Lennart Bohlin. "It is rare for a merger between two companies to generate such positive effects this quickly." Sales in the three main markets Sweden, Finland and Poland rose 5 per cent in volume. The key brands showed continued volume growth and also increased their share of total sales. In addition, sales of pick-and-mix developed favourably. The sale of Business Area Handel in September 2001 has given the Group a very solid financial position. As a result, net financial items for the first quarter improved to MSEK 2, compared with MSEK -10 in the corresponding period of last year. The Group's equity ratio strengthened to 72 per cent (49). d föregående år. Koncernens soliditet förbättrades till 72 procent (49).