Swedish confectionery and nuts company Cloetta has reported its sixth consecutive quarter of growth in branded packaged products and 'continued profitable growth' within pick & mix.
Net sales for the second quarter of the company's financial year increased by 14.5% to SEK 1,626 million (€1.42 billion) including a positive impact from foreign exchange rates of 2.6%.
The group also said that profitability improved in the quarter, while it also made progress on its sustainability targets.
Second-Quarter Performance
Cloetta reported an 8.2% increase in organic sales in the quarter in its branded packaged products division.
Sales of pick and mix saw an organic sales increase of 24.4% during the period.
Operating profit adjusted for items affecting comparability, amounted to SEK 162 million (€127 million).
Cash flow from operating activities was SEK -78m (€155m), driven by increased inventories and inflation. Net debt/EBITDA ratio was 2.4x (2.9).
Cloetta Future Plans
Elsewhere, Cloetta announced a plan to invest in a new greenfield facility in the Netherlands to enable growth and accelerate margin expansion.
The group also extended the maturities of its current loan facilities with the existing banking group by one year to 2024-2026.
Cloetta’s climate targets have been approved by the Science Based Targets initiative.
Following the end of the quarter, the board resolved on the repurchase of the company’s own B-shares to enable the delivery of shares under the long-term share-based incentive programme.
Read More: Cloetta To Invest In New Sustainable Facility In The Netherlands
© 2022 European Supermarket Magazine – your source for the latest A-Brands news. Article by Conor Farrelly. Click subscribe to sign up to ESM: European Supermarket Magazine.
