Cloetta Fazer: reports strong Q4/2007

Helsinki / FI. (cf) Cloetta Fazer AB´s sales for the fourth quarter of 2007 rose by twelve percent to 1.110 million SEK (994). Operating profit before one-time items was 156 million SEK (136), a year-on-year increase of 15 percent. Operating margin was 14,1 percent (13,7). The Board proposes an increase in the regular dividend to 7,00 SEK (6.50) and an extra dividend of 3,00 SEK, for a total of 10,00 SEK.

«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 Aberg. «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». Aberg 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 nine percent and sales in the non-Nordic markets rose a full 45 percent to 100 million SEK (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. Our recently completed acquisitions of Karamellpojkarna and Fennobon are also important steps towards realisation of our growth target», says the CEO.

Sales for the full year improved by six percent, or 179 million SEK, to 3.253 million SEK (3.074). Operating profit excluding restructuring charges was 335 million SEK (353), equal to an operating margin of 10,3 percent compared to 11,5 percent for the prior year. Net profit was 250 million SEK (262). The Group´s long-term goal is to grow by 25 percent, of which ten percent organically.