Swedish confectionary company Cloettas profits have nearly quadrupled

Swedish confectionary company Cloetta's profits have nearly quadrupled

Swedish confectionery company Cloetta nearly quadrupled its profit in its last financial year.

Cloetta posted net profit of SEK22m (US$3.2m) for the year ended 31 August, against an SEK6m in the previous year. Operating profit grew to SEK35m, up from SEK0 in the previous year.

Net sales were SEK1.06bn, down from SEK1.18bn. However, sales of Cloetta's products rose 8% for the year to SEK914m.

Cloetta managing director and CEO Curt Petri said: "Our strong full-year profit is a result of higher sales, a positive response to our product launches and greater efficiency in production."

In the fourth quarter, the company posted an operating loss of SEK6m, down on the SEK22m loss posted in the same quarter of last year. Net sales inched up 0.5% to SEK213m. Sales of Cloetta's own products increased 2% to SEK185m.

"We also showed an improvement here. Cloetta's fourth quarter is the weakest of the year in relative terms, as consumption of confectionery is normally lower during the summer months," Petri added.