Cloetta, the Swedish confectionery firm, has announced it is to close the Polish operation of its Candyking business.
In a statement accompanying its fourth-quarter and full-year results this morning (26 January), Cloetta said: “We have decided to exit the loss-making Candyking business in Poland since we do not see a profitable business going forward.”
Go deeper with GlobalData
Nor further details were provided about timescales or potential job losses.
Cloetta revealed it was acquiring fellow Swedish confectioner Candyking in February last year and has been integrating that business into its own since.
Referring to that integration in relation to its fourth-quarter results – which saw sales increase by 20.2% but operating profit dip by 5% – Cloetta said: “Candyking developed very well during the quarter and showed a growth of 14%.”
See Also:
It added: “The acquisition of Candyking and the divestment of Cloetta Italy have changed the group structure significantly. This enables Cloetta to focus more on driving organic growth on the northern and western European markets while at the same time drive synergies from the acquisition of Candyking.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataCloetta described 2017 as “challenging”. It said: “The fire at a production line in the factory in Belgium in June has created production capacity constraints resulting in lower production volumes, higher production cost and to some extent also lost sales.”
The company is also facing an insider trading probe.
