Swedish confectionery group Cloetta returned to profit during the first half of its financial year, but stated that the European market for sweet goods remained 'weak' during the period.
In the three-month April to June period, Cloetta recorded an operating profit of SEK112 million (US$17.1m), comparing to losses of SEK47 million in the previous year. Bengt Baron, president and CEO of Cloetta, commented that the company's improvement was "primarily the result of realized synergies from the merger and factory restructuring." Cloetta's underlying operating profit for the first half stood at SEK200 million.
However, the market for confectionery in Europe remained relatively weak, and especially so in Italy, the Netherlands and Denmark. Finland also 'lost momentum' during Cloetta's second quarter, with weak economic development and a falling GDP in the region, according to the company.
As a result, sales fell by 1.7% to SEK2.26 billion during the six-month period from January to June. Net sales for the the second quarter, April to June 2013, fell by 6.8% to SEK1.13 billion.
"Sales in Sweden developed well in general, but decreased overall as we decided not to sell the seasonal foam product 'Juliskum'. Sales of pick-and-mix candy also declined," CEO Baron noted.
Numerous products were launched during the quarter by Cloetta, including a centenary edition of the 'Guldnougat' chocolate bar in Sweden, as well as dual liquorice and caramel candy product in the Netherlands.
© 2013 - ESM: European Supermarket Magazine by Ellen Lunney
