Cloetta CEO Bengt Baron said today (18 July) the confectioner’s efforts to drive growth was “delivering results” with profits heading “in the right direction” after the company reported its second-quarter results.
The owner of Sportlife, Goody Good Stuff and Jenkki confectionery saw sales and profits rise during the three months to the end of June despite challenging conditions in most of its markets.
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Operating profit was up 57.4% at SEK85m (US$12.5m); underlying EBIT, measured at constant exchange rates and excluding restructuring and M&A costs, inched up 0.9% to SEK110m. Cloetta booked a net profit of SEK9m, compared to a loss of SEK44m a year earlier.
Sales were up 9.5% at SEK1.29bn, helped by acquisitions and foreign exchange. On an organic basis, sales grew 2.2%. Revenue was up in all markets except Italy, which Cloetta described as “unstable”.
The second-quarter numbers translated into higher net sales and operating profit over the first half of the year. However, underlying EBIT was down, while Cloetta posted a half-year net loss of SEK3m amid higher finance costs.
Nevertheless, Baron was positive about Cloetta’s performance. “Our efforts to drive growth, both organic and through acquisitions, are delivering results. In terms of profitability, we have taken a step in the right direction during the quarter.”
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By GlobalDataClick here for the full statement from Cloetta.
For our coverage of Cloetta’s media and analyst call to discuss the results, click here.
For our analysis of Cloetta’s strategy, click here.
