Cloetta, the Nordic confectioner, posted net sales of SEK457m (US$55.4m) for its fiscal first quarter, following its separation from Fazer Confectionery.
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For the period from September to November, a period dominated by Christmas sales, net sales were up 2.5%.
Operating profit amounted to SEK38m from SEK38m in the comparable period for the previous year, with an operating margin of 8.3%.
“The organisation has succeeded admirably in increasing Cloetta’s sales despite the intensive effort devoted to the demerger of Cloetta Fazer,” said CEO Curt Petri.
“This excellent start gives us a renewed sense of for the future. The first quarter accounts for 30%-35% of Cloetta’s total sales and a clearly dominant share of earnings for the full year.”
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By GlobalDataCloetta said its earnings have been impacted by increased raw material costs, which have risen further due to weakening of the Swedish krona. The company said it will introduce additional price hikes alongside measures to improve efficiency.
Following the demerger of Cloetta Fazer, Cloetta will no longer sell Fazer’s products.
In the short term the company said it will not be possible to reduce expenses to an extent equal to the decrease in net sales, and therefore anticipates a negative operating margin and a loss for the current financial year.
