Candyking suffered from losing contracts in Sweden

Candyking suffered from losing contracts in Sweden

Candyking, the Sweden-based confectioner, this morning (27 May) reported growing first-quarter losses after sales tumbled due to the loss of contracts in its domestic market.

The company booked a net loss of SEK5.9m for the three months to the end of March, compared to a loss of EUR3.6m in the first quarter of 2015. Candyking's EBIT tumbled 36.2% to SEK8.8m.

Net sales declined 13.1% to SEK371.9m, with volumes down 10.2%. Candyking pointed to "lost customer contracts in Sweden".

The market for pick-and-mix confectionery in Sweden "continues to be characterized by intense competition", Candyking said. However, the group insisted its "erosion" in market share is expected to "diminish" in the second half of its financial year. Candyking has reviewed its costs and introduced "a new organisation" in the first quarter.

Combined volumes in Norway, Denmark and Finland grew 9.7%, athough revenues dipped 0.6%. Candyking said "strong" Easter sales and "heavy" promotions in Norway boosted volumes.

Elsewhere, Candyking reported a "strong" performance in the UK due to promotional activity and a gain in distribution.