Cloetta AB: reports lower profit in Q1/2012

Stockholm / SE. (cab) Swedish Cloetta AB announced sales for the first quarter reached 302 million SEK (333 million SEK). Operating profit for the same period was 31 million SEK (45 million SEK). Profit after tax was 23 million SEK (32 million SEK). «Sales of Cloetta´s two leading brands, Kexchoklad and Polly, rose during the quarter», says CEO Curt Petri. «The overall drop in sales for the quarter is due to weaker development in the grocery retail market than in the same period of last year, a decrease in products manufactured on contract and the previous year´s sell-in volumes of the newly launched Tarragona bars. Higher marketing investments, above all in Norway, have also impacted profit. Price increases have been implemented during the autumn which will have an effect in the coming year», adds Petri in a news release. A few days ago a proposal was announced for a merger between Cloetta and «Leaf». «The merger with Leaf will bring whole new opportunities for Cloetta», says Petri. Cloetta has promising and well prepared plans for product and category development during 2012. Together with Leaf´s attractive brand and product portfolio we will gain at least five complementary segments where we are market-leaders in Sweden and a firm footing in the Nordic market, which will benefit the shareholders, customers, consumers and employees alike».

Founded 1862, Cloetta is the oldest confectionery company in the Nordic region. In 2012 the company will thus celebrate its 150th anniversary. The Cloetta brand stands for responsibility and quality, but is also strongly associated with happiness, enjoyment and energy.