October 19, 2006
Cloetta Fazer posts higher operating profit for third quarter
Cloetta Fazers operating profit for the third quarter improved to SEK 89 (87) excluding restructuring charges, equal to an operating margin of 12.9 per cent (12.4). Sales fell by 2 per cent to SEK 692 (709) million.
Despite a warm summer and autumn which are associated with lower demand for confectionery Cloetta Fazer delivered robust earnings for the third quarter, says CEO Karsten Slotte. Sales of our twelve prioritised brands showed sustained growth. For example, sales Pantteri, known as Salta Katten in Sweden, increased by over 50 per cent and this is now our fifth largest brand.
Sales for the first nine months of the year amounted to SEK 2,080 (2,098) million. Operating profit excluding restructuring charges was SEK 217 (231) million.
The drop in sales for the first nine months is attributable to the Polish market. Nordic sales, which account for more than 90 per cent of the total, were up by 1 per cent. During the same period, sales of our prioritised brands increased by 4 per cent.
Confectionery consumption in Russia is rising steadily, and to strengthen our position in this market we are setting up an in-house sales organisation during the autumn that will be in place by the beginning of next year, concludes Karsten Slotte.
About Cloetta Fazer:
The Cloetta Fazer Group is the Nordic regions leading confectionery company, with a market share of around 22 per cent. The company has production facilities in Sweden and Finland. Cloetta Fazers strength lies in its many popular brands, such as Karl Fazer, Kexchoklad, Dumle, Geisha, Polly and Center. The average number of employees is around 1,600 and annual sales amounts to approximately SEK 3 billion.
For further information
Karsten Slotte, Managing Director and CEO
mobile +46 (0)70-687 9922 or
Curt Petri, CFO, mobile +46 (0)70-593 2169
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