Stockholm / SE. (cab) Swedish Cloetta AB, a leading confectionery company in the Nordic region and the Netherlands, announced its interim statement for the second quarter 2020, covering the period from April to June 2020. The company reports improved sales during the second half of the quarter while the negative Ebit impact was partly mitigated by phasing of supply chain costs to the third quarter.
- Net sales for the quarter decreased by 21.9 percent to SEK 1,237 million (1,583) including a negative impact from foreign exchange rates of 0.7 percent.
- Sales of branded packaged products declined organically by 6.3 percent during the quarter: 3.6 percent in April and 16.6 percent in May, but increased by 1.5 percent in June.
- Sales of pick + mix declined organically by 58.5 percent during the quarter: 70.5 percent in April, 60.2 percent in May and 41.1 percent in June.
- Operating profit amounted to SEK 105 million (159). Profit for the period amounted to SEK 108 million (97). Operating profit, adjusted for items affecting comparability, amounted to SEK 110 million (161). The negative impact on operating profit was partly mitigated as approximately SEK 35 million of the underabsorption of fixed costs due to lower production will impact the third quarter.
- Cash flow from operating activities amounted to SEK –39 million (–3).
- Net debt/Ebitda ratio was 2.6x (2.7).
- Cloetta expects that sales of both branded packaged products and pick + mix will continue to improve gradually as Covid-19 restrictions ease. Cloetta has also made an assessment that the operating profit, adjusted, for the third quarter will be significantly lower than prior year, and will then gradually strengthen, ending the year on double-digit margins.
