Swedish confectionery group Cloetta has reported a 1.7% growth in the sales of branded packaged products in the third quarter of its financial year.
The sales of pick and mix products showed some recovery but the overall category saw a decline of 31.4% during the quarter.
The company's operating profit for the quarter amounted to SEK87 million (€8.38 million), down 35% year-on-year, while the EBITDA ratio was 2.6x.
Net sales declined by 9.5% to SEK1.47 billion (€140 million), including a negative effect of 2.2% due to exchange rate fluctuations.
Outlook
The company said that it was ‘well-positioned’ for long-term growth.
The company has implemented several measures, including investments in brands, to ensure growth in the branded candy and chocolate categories.
In August of this year, the company announced plans to close its nut processing facility in Helsingborg and outsource production to a third-party supplier.
President and CEO of Cloetta, Henri de Sauvage-Nolting, said, “While we expect that there will be continued volatility and uncertainty due to COVID-19, I firmly believe that our strategy, combined with our strong brands and market presence, positions us well to emerge stronger from the crisis.”
© 2020 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.
