Cloetta Fazer reports growth in sales and profit

Cloetta Fazer reports growth in sales and profit

Cloetta Fazer's first quarter sales rose to SEK 740 million (732). Operating
profit for the quarter improved to SEK 79 million, compared with SEK 74 million
for the year-earlier period excluding one-time items. Operating margin
strengthened to 10.7 per cent (10.2).

“In terms of sales and profit, the first quarter was a good start to the year
for Cloetta Fazer,” says the company's new CEO Jesper Åberg. Sales in Finland
were up by 5 per cent and the important sales on ferries and at airports (Travel
Trade) rose by 15 per cent. 
Sales in the Baltic market are also showing positive development and Cloetta
Fazer is now the second largest confectionery supplier in Estonia. The company's
new sales organisation in Russia is now in place and operating successfully. 
“The improvement in operating profit for the first quarter mainly reflects
growth outside the Nordic region,” continues Jesper Åberg.

Although sales of the prioritised brands continued to increase, overall sales in
Sweden fell by 1 per cent. Sales in Norway declined during the first quarter.

The upward sales trend for the Karl Fazer brand continued in Finland, driven
partly by the launch of a blue-and-white countline. The strongest increase was
noted for bagged products such as Pantteri in Finland and its counterpart Salta
katten in Sweden.

“Higher raw material costs, mainly for cocoa and milk products, will pass
through to manufacturing costs in the second half of the year, and increased
consumer price will be necessary to offset these effects,” concludes Jesper
Åberg.


For additional information contact Jesper Åberg, Managing Director and CEO,
mobile +46 (0)70-180 2101 or Curt Petri, CFO, mobile +46 (0)70-593 2169. 
www.cloettafazer.com

About Cloetta Fazer 
The Cloetta Fazer Group is the Nordic region's leading confectionery company,
with a market share of around 22 per cent. The company has production facilities
in Sweden and Finland. Cloetta Fazer's strength lies in its many popular brands,
such as Karl Fazer, Kexchoklad, Dumle, Geisha, Polly and Center. The average
number of employees is around 1,600 and annual sales amounts to approximately
SEK 3 billion.