President and CEO Bengt Baron comments on the results for

New Post Public Reply Private Reply Replies (0) Message Board

News Desk 2018

Jul 19, 2013 at 5:45 AM

President and CEO Bengt Baron comments on the results for the second quarter of 2013

For the third consecutive quarter underlying operating profit (EBIT) increased versus the previous year. The company’s underlying operating profit (EBIT) improved to SEK 109m (49) for the quarter. The improvement is primarily the result of realised synergies from the merger and factory restructurings. The underlying operating margin amounted to 9.6 per cent (4.0) and the gross margin improved to 38.4 per cent (34.1). Cash flow from operating activities was SEK –23m (125). The change mainly comes from a build-up of stocks as part of factory restructurings and the impact of changed payment terms in Italy. We repaid loans with SEK 90m, which is in line with our plan. The confectionery market remained relatively weak during the quarter, especially In Italy, Denmark and the Netherlands, but Finland also lost momentum in the quarter in the face of weak economic development with a falling GDP. In most other markets, the confectionery market showed a slight positive trend. Adjusted for changes in exchange rates sales decreased by 4.1 per cent in the quarter. Sales increased or were relatively stable in the Netherlands, Italy and Germany, but decreased in most other countries. The reasons for the decline in sales vary by market. Sales in Sweden developed well in general, but decreased overall as we decided not to sell the seasonal foam product “Juliskum”. Sales of pick-and-mix candy also declined. The lower sales in Denmark were primarily caused by unresolved negotiations with a major customer. Also, the shift towards border trade continues. In Norway, sales were temporarily negatively impacted due to a major reorganisation. In Italy, the sales development was better than it has been for several quarters. This was due to a strong re-launch of the Dietorelle brand. In general, however, market development in Italy remains weak. The integration process, as stated in our previous quarterly report, has been essentially completed from an operational standpoint. During the second quarter, a contract was signed for the purchase of the externally operated production line, which currently manufactures Tupla, our largest chocolate product in Finland. The production line will be relocated to Ljungsbro, Sweden. As announced earlier, overall savings from the integration will gradually be achieved in 2013. The production restructuring is proceeding according to plan. As reported previously, at the end of 2012 and the beginning of 2013 we closed and relocated production from Alingsås, Sweden, and Aura, Finland. Installation of equipment in Ljungsbro and Levice, Slovakia, in order to take over production from Gävle, Sweden, is in progress. The focus is now gradually shifting to matching (test runs to ensure flavour, consistency and appearance) of the products. The factory in Gävle is scheduled for closure during the first quarter of 2014. We began to realise synergies from the merger and cost savings from the restructuring in the third quarter, 2012. Thus, comparative quarterly results will include such positive effects going forward on our journey towards an EBIT margin of at least 14 per cent. During the quarter, we also implemented the Group’s new business system in the factory in Levice, Slovakia. Cloetta has limited financial flexibility with regard to acquisitions, however, we continuously evaluate potential acquisition candidates. In fact, Cloetta made a small acquisition during the quarter when the FTF Sweets Ltd which owns the brand Goody Good Stuff was acquired. In summary, our strategy remains unchanged and we intend to finalise the merger as well as the ongoing factory restructuring in the next three quarters. As these efforts more and more come to a completion, it will allow us to again focus entirely on driving profitable growth. Media contact Jacob Broberg, Senior Vice President Corporate Communications and Investor Relations, 46 70-190 00 33 About Cloetta Cloetta, founded in 1862, is a leading confectionary company in the Nordic region, the Netherlands, and Italy. In total, Cloetta products are sold in more than 50 countries worldwide. Cloetta owns some of the strongest brands on the market, such as Läkerol, Cloetta, Jenkki, Kexchoklad, Malaco, Sportlife, Saila, Red Band and Sperlari. Cloetta has 10 production units in five countries. Cloetta’s class B-shares are traded on NASDAQ OMX Stockholm. More information about Cloetta is available on www.cloetta.com

Newer

Older

Scroll down for more posts ▼

Top 10 Most Recent News Articles

October Becomes a Beacon for Grieving Families

October: A Month for Heartfelt Observance There's a profound resonance when October rolls around, especially for families who've faced the heartbreak of pregnancy or infant loss. Thanks to Postpartum Support International (PSI), the month serves as more than just a page in a calendar—it's a solidarity rallying cry for awareness and remembrance. The group's commitment to...

Rochester Memorial Installations: Key Timelines Revealed

There are times in life where patience isn’t just a virtue, it’s a necessity—memorial installations are one of those instances. In Rochester, NY, folks dealing with the loss of a loved one want more than just closures; they want to commemorate their people in a way that lasts. But how long does it take, really, to set these tributes in stone? Understanding the...

Fresh Leadership at Master Group: Langelier Steps In

Changing of the Guard: A Calculated Move It's not every day you see a company make a move as calculated and thoughtful as the one the Master Group just pulled. Rémy Langelier is set to transition into the shoes of CEO by early 2027, fresh off the heels of Louis St-Laurent. This isn't just any executive shuffle, folks—it's a strategic baton pass spawning an investment...

Comparent Unveils Key Insights with Top 100 List

The Ebb and Flow of Vacation Rental Giants Ever noticed how some industries just sneak up and suddenly transform landscapes? Vacation rental management is one of those sneaky offenders. At the forefront of keeping tabs on this bustling sector, Comparent just dropped a meaty second annual roster—the Comparent 100—showcasing the biggest players flexing their muscles in...

Haystack MRD Shines in Colorectal Cancer Trials

A New Dawn in Cancer Detection Just when you think you've seen it all in cancer diagnostics, Haystack MRD® pops up like a fresh tulip in spring. And listen, this ain't just fluff—the results from the DYNAMIC trials are a pretty compelling love letter to the power of liquid biopsy. With 100% specificity and sensitivity hitting a whopping 83.3% over five years, it’s...

Li-Fire Expands Fire Safety Amid Rising Battery Risks

A Crunchy Look at New Fire Safety Moves Well, folks, here's a twist we didn't see coming but sure makes sense in today's electrifying business landscape. Li-Fire, the big brains behind lithium battery fire suppression, is spreading its wings nationwide, or at least its wholesale and distribution programs are. And right ahead of National Fire Safety Week no less—talk...

MiniCo's New Desk: A Game Changer for E&S Market

A New Chapter in Industrial Casualty Look out, folks! MiniCo Insurance Agency is making waves with its latest launch. They're teaming up with Lloyd's of London, not to sell fish and chips, but to bring something groundbreaking in the insurance space—an industrial casualty trading desk. And if you’re raising an eyebrow wondering why this matters, let me break it down...

Athlete Threats: Public Info Fuels Security Risks

Public Exposure: The New Athlete Achilles' Heel Imagine sitting on millions while living in a glass house. That's the kind of predicament today's athletes find themselves in, thanks to the treasure trove of public information spilling their personal lives all over the internet. According to the latest Hush Intelligence Athlete Threat Report 2026, this very exposure has...

Texas A&M-San Antonio's Research Expansion Momentum

Texas A&M-San Antonio's Rising Research Ambitions A rainy day in San Antonio and Texas A&M University-San Antonio seems to have set the stage for more than just another semester of record enrollment. They’ve just rolled in with an exhilarating $8 million in external grants this fiscal year, more than doubling last year’s haul of $3.6 million, in a bid to push their...

Concrete Pipe: Foundation of Modern Infrastructure

Reinforced Concrete Pipes Hold Their Ground You know, it might not be the flashiest part of our infrastructure toolkit, but concrete pipe plays a mighty big role behind the scenes. Even in this age of shiny new tech and constantly evolving materials, the classic concrete pipe still packs a punch—especially when you demand something that'll last. Enter Stephanie Ward, a...