Swedish confectionery group Cloetta has almost doubled first-quarter operating profit on the back of production synergies and pricing increases.
The company said today (29 April) operating profit rose to SEK91m (US$13.9m), up from SEK47m in the corresponding period of last year. It booked net profit of SEK36m, compared to a net loss of SEK119m in the first quarter of 2012.
The company said its target to reduce costs by restructuring operations was paying off. During the period Cloetta closed one factory, sold another and reorganised its warehousing and back end operations. Costs associated with the group’s restructuring totalled SEK33m in the period, down from SEK53m in the comparable period of last year.
Net sales for the quarter were also up, rising to SEK1.12bn from SEK1.08bn last year, as pricing increases brought in during 2012 boosted the top line.