Candyking, the Sweden-based confectioner, has posted another half-year loss after the end of contracts in its domestic market and in Finland hit sales.
The company booked a loss of SEK17m (US$2m) for the six months to the end of June. The result was an improvement on a SEK53.6m loss made in the first half of 2014 thanks to lower financial expenses. However, Candyking’s underlying EBIT fell 70.7% to SEK8.5m.
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Net sales dropped 16.2% to SEK758.5m, the company said. At constant currencies, net sales slid 18.9%. Volumes were down 22%.
Candyking said the lower volumes were “mainly” a result of the end of contracts to supply Swedish grocer Coop and Finnish food retailer S Group.
The group did point to volume gains in Norway and Denmark and the extension of a contract to supply UK high street retailer Wilko.
Candyking made a net loss of SEK67m in 2014. Like 2013, financial expenses weighed on Candyking’s bottom line, but losses were down on that year’s SEK89.3m. Annual sales inched up 0.4% to SEK1.77bn, with rising revenue from its businesses in the UK and Poland.
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