Swedish confectionery firm Cloetta has reported a 13.4% increase in net sales, to SEK 1.7 billion (€160 million), in the fourth quarter of its financial year.
Sales of branded packaged products saw overall organic growth of 9.3% during the quarter, rising by 1.9% in October, 14.8% in November and 13.2% in December.
The company’s pick-and-mix business reported organic growth of 32.4% in this period, registering maximum growth of 44.3% in December.
However, operating profit was affected negatively, by SEK 3 million (€290 million), during the quarter and SEK 30 million (€2.9 million) for the full year, due to accounting changes linked to cloud-computing arrangements.
Adjusted operating profit amounted to SEK 157 million during the quarter, with branded packaged products generating SEK 152 million and pick-and-mix contributing SEK 5 million.
The company’s full-year net sales increased by 6.2% year on year, to SEK 6.05 billion, while adjusted operating profit amounted to SEK 571 million – up 15.4% year on year.
The president and CEO of Cloetta, Henri de Sauvage-Nolting, said, “As we close the year, I am particularly pleased that we were successful in our efforts to bring sales of branded packaged products to above 2019 levels, recording four consecutive quarters of growth.
“This was achieved mainly through successful marketing, including our strategic innovation initiatives, such as fruit-based candy and Kexchoklad Vegan, as well as a further focus on sales fundamentals.”
Outlook For The Year Ahead
The company has reaffirmed its commitment to continue to grow organically, in line with (or better than) the market.
Sauvage-Nolting stated, “Over the last two years, we have successfully managed to safeguard our business from various global supply challenges, and we are also on track to mitigate current headwinds related to input costs in 2022.”
He continued, “Cloetta has a portfolio of local leading brands, committed employees, a strong cash flow generation, and a solid balance sheet. Combined with our clear strategic priorities for sustainable growth and margin expansion, I am therefore confident that Cloetta stands strong.”