Increased sales, first quarter earnings impacted by higher raw material costs

Increased sales, first quarter earnings impacted by higher raw material costs

Compared to the same period of last year, Cloetta Fazer's sales rose by 6% to
SEK 782 million (740). Operating profit was SEK 47 million (79) and operating
margin was 6% (10.7%).

“Our prioritised brands grew by 3% and miscellaneous brands by 14%, while the
pick-and-mix segment declined by 16%. The increase in sales for our top brands
was mainly achieved through successful product launches and campaigns. The most
significant sales growth was noted in the Finnish and non-Nordic markets, of
which the Baltic countries and Russia stand out,” according to company's CEO
Jesper Åberg. 

The drop in operating profit was mainly due to a sharp rise in raw material
costs.

“The price increases we have already introduced in 2008 have not been sufficient
to offset this effect, for which reason additional upward adjustment of prices
will be necessary in combination with efficiency enhancement measures,” adds
Jesper Åberg. 


The information from Cloetta Fazer contained herein is subject to the disclosure
requirements in the Swedish Securities Market Act. The information was submitted
for publication on 23 April 2008, 12:05 p.m.


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.