Interim Profits Plunge at Cloetta
Falling sales volumes and a decrease in contract manufacturing coupled with rising raw material prices, which weakened margins, have adversely impacted on the financial performance of Swedish confectionery manufacturer Cloetta in the first half to February 2011. Net sales fell 4.1% to SEK557m (Eur62m) and operating profit by 40.5% to SEK22m as the operating margin declined from 6.4% to 3.9%. The Swedish market accounts for about 85% of Cloetta’s sales. Profit before tax dropped from SEK35m to SEK21m.
Founded in 1862, Cloetta is the oldest confectionery company in the Nordic region. The company’s best known brands are Kexchoklad, Center, Plopp, Polly, Tarragona, Guldnougat, Bridge, Juleskum, Sportlunch, Extra Starka and the chocolate bar range Good. Cloetta has two production units in Sweden, one in Ljungsbro and one in Alingsas. For the year ended 31st August 2010, Cloetta posted net sales of SEK1.06b.
