Swedish confectionery firm Cloetta AB has reported a 14.9% decline in net sales, to SEK 1.5 billion (€150 million), in the fourth quarter of its financial year ended December 2020.
Operating profit for the quarter declined 42.1% year-on-year, to SEK121 million (€11.9 million).
The company saw a net sales decline of 12.3% in full-year 2020, to SEK5.7 billion (€560 million).
Operating profit for the period amounted to SEK462 million (€45.5 million), down 36.5% year-on-year, from SEK727 million (€71.6 million) in the corresponding period in 2019.
The company saw organic sales of branded packaged products decrease by 3.6% during the quarter.
In the third quarter of 2020, it saw a 1.7% growth in the sales of branded packaged products.
Organic sales in its ‘pick & mix’ business declined 35.9%, the company added.
The division generated a negative EBIT of approximately SEK135 million (€71.6 million) in 2020, impacted by the COVID-19 pandemic.
The confectionery firm is confident that it is well-positioned to continue to create value.
It will focus on organic growth with the aim to reach an EBIT margin (adjusted) of at least 14%.
It also plans continue to pursue its strategy while adapting its implementation plans to meet the requirements of a constantly-changing market environment.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.