Cloetta Fazer reports strong fourth quarter

Cloetta Fazer reports strong fourth quarter 

Cloetta Fazer' sales for the fourth quarter of 2007 rose by 12 per cent to SEK
1,110 million (994). Operating profit before one-time items was SEK 156 million
(136), a year-on-year increase of 15 per cent. Operating margin was 14.1 per
cent (13.7). 

The Board proposes an increase in the regular dividend to SEK 7.00 (6.50) and an
extra dividend of SEK 3.00, for a total of SEK 10.00.

“Cloetta Fazer delivered healthy earnings growth in the important fourth quarter
compared to the same period of last year,” says the company's CEO Jesper Åberg.
“The successful Christmas sales in both Sweden and Finland, as well as the
Baltic and Russia, contributed to the period's strong performance. Thanks to
robust sales, we were able to increase our profit for the quarter.”
Jesper Åberg announces that the company will introduce price increases at the
beginning of 2008 in response to a sharp rise in raw material costs during 2007.

Sales in the Nordic market were up by 9 per cent and sales in the non-Nordic
markets rose a full 45 per cent to SEK 100 million (69) for the fourth quarter.

“Although the increase primarily in the Baltic countries and Russia has taken
place from a low level, these are markets with enormous potential,” continues
Jesper Åberg.

“Our recently completed acquisitions of Karamellpojkarna and Fennobon are also
important steps towards realisation of our growth target,” says Jesper Åberg. 

Sales for the full year improved by 6 per cent, or SEK 179 million, to SEK 3,253
million (3,074). Operating profit excluding restructuring charges was SEK 335
million (353), equal to an operating margin of 10.3 per cent compared to 11.5
per cent for the prior year. Net profit was SEK 250 million (262).

The Group's long-term goal over a three-year period is to grow by 25 per cent,
of which 10 per cent organically. 

“It is therefore vital to expand in the nearby geographical markets, where the
Baltic countries, Russia, Norway and Denmark have high priority,” concludes
Jesper Åberg.

For additional information contact:
Jesper Åberg, CEO and Managing Director, mobile +46 70-180 21 01 
Curt Petri, CFO and Deputy Managing Director, mobile +46 70-593 21 69
Website: www.cloettafazer.com

About Cloetta Fazer
Cloetta Fazer 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 amount to approximately SEK
3.3 billion.