Cloetta sees benefit of lower costs but outlook cautious

Cloetta sees benefit of lower costs but outlook cautious

Swiss confectioner Cloetta has booked an increase in operating profit during the third quarter, thanks to integration synergies and an improved outlook for the confectionery market.

The company said operating profit rose to SEK131m (US$19.6m), up from SEK90m in the comparable period of last year. Underlying operating profit jumped to SEK160m, compared to SEK124m, the company added.

"The improvement in earnings is mainly due to realised synergies from the merger, as well as factory restructurings, but was also fuelled by increased sales," Bengt Baron, president and CEO, said.

Sales rose 3% in the period, including the positive impact of currency exchange of 1.6%, climbing to SEK1.19bn.

During the period, the company said it benefited from an improved outlook for the confectionery market in Europe.

"Development in the confectionery market was somewhat better in the quarter, leading to growth in most of our markets," Baron said.

However, the CEO added: "Overall, we remain cautious about market development in the near future."

Third-quarter net profit stood at SEK86m, up sharply from SEK13m last year.

Show the press release

Interim report, Q3 July – September 2013

THU, NOV 14, 2013 08:00 CET

 

 

  • Net sales for the quarter increased by 3.0 per cent including a positive impact from foreign exchange of 1.6 per cent.
  • Operating profit was SEK 131m (90).
  • Underlying EBIT was SEK 160m (124).
  • Items affecting comparability amounted to SEK –29m (–34) and consists of restructuring SEK –28m (–31) and impact from foreign exchange of SEK –1m (–3).
  • Cash flow from operating activities was SEK 54m (93).
  • Net Debt/Underlying EBITDA was 4.4x (5.3).
  • Issuance of the Senior secured notes for an amount of SEK 1,000m and the renegotiated credit facility reduces interest cost.
  • The integration process has been completed.
  • The factory restructurings are proceeding according to plan.

Original source: Cloetta