Swedish confectionery firm Cloetta has reported a rebound in sales in the second quarter, with sales of branded packaged products returning to pre-pandemic levels and good progress in profitability in its' pick & mix' business.
The company posted a 14.8% year-on-year growth in net sales, to SEK 1.4 billion (€140 million), in the second quarter of its financial year.
'A Solid Quarter'
President and CEO of Cloetta, Henri de Sauvage-Nolting, stated, "We have delivered a solid quarter with a rebound in sales and improved profitability, while also increasing our marketing investments to strengthen our brands."
Operating profit, adjusted for items affecting comparability, amounted to SEK 140 million (€13.7 million), up 27.3% year-on-year.
The results were driven by higher sales volumes and continued margin-enhancing initiatives, partly offset by significantly higher marketing investments.
Cloetta noted that in 2020, its operating profit was favourably impacted by the phasing of supply chain costs of approximately SEK 35 million between the second and the third quarter.
EBITDA for the period amounted to SEK 2.8 million (€270 million), up 7.7% year-on-year.
Divisional Performance
Sales of branded packaged products saw an organic growth of 7.3% during the quarter, while adjusted operating profit amounted to SEK 136 million.
Cloetta added that this performance was a result of successful marketing and innovation, as well as increased traffic across most channels.
Organic sales in its' pick & mix' business increased by 79.6%, with a growth of 85.4% in April, 111.0% in May, and 55.9% in June.
The company attributed this performance to the re-opening of pick & mix shelves, more consumer activations, and growing consumer confidence.
The adjusted operating profit of the division amounted to SEK 4 million.
Full-Year Outlook
Sauvage-Nolting added, "Looking ahead, I am confident that pursuing our strategy will ensure we remain well-positioned to deliver on our long-term targets.
"We are pleased to see the continued increase of shoppers in our sales channels. At the same time, we see greater uncertainty due to the recent rises in input costs, such as raw material and freight costs. "
In the period between January-June 2021, Cloetta reported a 2.3% year-on-year growth in net sales to SEK 2.8 billion (€270 million).
In June, the company launched a new sustainability agenda, 'A Sweeter Future', which reflects the group's 'heightened ambition', according to the company.
