Cloetta Fazer Reports Strong Third Quarter Profit


STOCKHOLM, Sweden, Oct. 21, 2002 (PRIMEZONE) -- The Cloetta Fazer Group reports a significant increase in earnings for the third quarter of the year. Profit after net financial items rose 33% to MSEK 96 (72). Sales during the quarter amounted to MSEK 721 (703) and the operating margin improved to 13% (11).

In first nine months of the year, operating profit rose to MSEK 249 (MSEK 233 for comparable units in 2001) and the operating margin improved to 11.9% (11.3). Sales amounted to MSEK 2,100 (MSEK 2,066 for comparable units in 2001). The company's equity ratio strengthened to 75% (68) and earnings per share increased to SEK 7.56 (6.64).

"Our third quarter earnings are strong," said Cloetta Fazer's CEO Karsten Slotte. "In the third quarter of 2002 we succeeded in achieving a 15% sales increase in Finland, which is our second largest market. In Sweden, our largest market, the sales volume was on par with the preceding year. However, in both countries it is clear that the positive sales trend for our key brands is continuing. Sales in the Polish market declined somewhat.

"For Cloetta Fazer, Christmas in the most important period of the year in terms of sales. The fourth quarter accounts for more than one third of our annual profit. In the final quarter of the year, rising cocoa prices will have an impact that cannot be immediately offset through higher sales prices," concluded Karsten Slotte.

About Cloetta Fazer

The Cloetta Fazer Group is the Nordic region's largest confectionery company, with a market share of 22%. The company has its own production plants and sales companies in Sweden, Finland and Poland, a co-owned and sales company in Norway, representation offices in the Baltic countries and sales agents in all other countries. Cloetta Fazer's strength lies in its many popular brands, such as Fazer Bla, Kexchoklad, Dumle, Geisha, Center and Polly. The average number of employees is just over 2,000.


For additional information contact: 
CEO, Karsten Slotte
telephone: +46 8 470 73 87, 
mobile: +46 70 687 99 22

CFO, Curt Petri
telephone: +46 13 28 51 10,
mobile: +46 705 93 21 69

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