Nordic confectioner Cloetta Fazer has seen quarterly profits slump by more than 40% due to a “sharp rise” in raw material costs.

The company today (23 April) booked first-quarter operating profit of SEK47m (US$8m), down 40.5% on the year.

CEO Jesper Åberg said the company would look again to increase prices – and improve efficiency – to boost the bottom line.

“The price increases we have already introduced in 2008 have not been sufficient to offset this effect, for which reason additional upward adjustment of prices will be necessary in combination with efficiency enhancement measures,” Åberg said.

Sales were up 6% to SEK782m thanks to “significant” sales growth in Finland, the Baltic states, and Russia.