STOCKHOLM, Sweden, Aug. 14, 2003 (PRIMEZONE) -- The Cloetta Fazer Group reports unchanged sales for the first six months of the year. In the second quarter, sales rose 4 per cent to MSEK 661 (637) over the same period of the previous year.
For the first six months of the year, the Group reports a profit after net financial items of MSEK 154 (160). Sales for the period were largely unchanged at MSEK 1,380 (1,379). The operating margin was 10.3 per cent (11.2) and earnings per share after tax amounted to SEK 4.45 (4.76).
Profit after net financial items for the second quarter was MSEK 56 (67).
"Our key brands, including Kexchoklad and Fazer Bla, have continued to perform well on our main markets in Sweden and Finland," said Cloetta Fazer's CEO Karsten Slotte. In the second quarter, sales in these two countries grew 5 per cent in volume compared with the same period of last year.
"The factor with the most negative impact on profit was the Polish market, comments Karsten Slotte. Lower volumes, intense price pressure and a weaker Polish currency have adversely affected second quarter earnings compared with the previous year. Poland's upcoming accession to the EU will change conditions on the Polish market and provide scope for better coordination in production, sales and marketing. We are now gearing up our efforts to adapt Cloetta Fazer's structure and organisation to these new conditions."
"We have also had higher sales and marketing costs in Sweden during the second quarter compared with the same period of last year," he continues.
"Furthermore, the global price surge for cocoa in the second half of 2002 has increased our manufacturing expenses. Since year-end these prices have fallen back somewhat, which will mean lower expenses in a longer perspective," 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 production facilities in Sweden, Finland and Poland. Cloetta Fazer's strength lies in its many popular brands, such as Fazer Bla, Kexchoklad, Dumle, Geisha, Polly and Center. The average number of employees is 2,000 annual sales in 2002 amounted to SEK 3 billion.
For additional information contact CEO Karsten Slotte, telephone +46 (0)8-470 73 87, mobile +46 (0)70-687 99 22, or Chief Financial Officer Curt Petri, telephone +46(0)13-28 51 10, mobile +46 (0)70-593 21 69.
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