Swedish confectionery group Cloetta returned to profit in the first half but said the confectionery market in Europe remained “weak” in the quarter.
In the three month period, Cloetta recorded an operating profit of SEK112m (US$17.1m). This compared to losses of SEK47m in the prior year. The company said the increase was on the back of production synergies and factory restructurings.
Cloetta also narrowed its net losses in the period to SEK8m from SEK241m last year.
However, the company said the confectionery market remained relatively weak, particularly in Italy, Denmark and the Netherlands. Finland also lost momentum in the quarter in the face of weak economic development with a falling GDP, it said.
As a result, sales fell 1.7% to SEK2.26bn in the six month period.
Click here to view the full earnings release.
