Confectionery manufacturer Cloetta has reported a slightly lower revenue but an improved adjusted operating profit for the third quarter of 2025 compared to the same period last year.
Net sales decreased by 0.9 percent to SEK 2,177 million (2,196), including a negative currency effect of -2.2 percent.
Operating profit amounted to SEK 255 million (238), resulting in an operating margin of 11.7 percent (10.8).
Items affecting comparability totaled -SEK 4 million (zero), related to changes in the operational structure.
Adjusted operating profit was SEK 259 million (238), with an adjusted operating margin of 11.9 percent (10.8).
Profit before tax was SEK 231 million (166).
Profit after tax reached SEK 189 million (130), representing a 45.4 percent increase year-on-year.
Earnings per share amounted to SEK 0.66 (0.45), an increase of 46.7 percent from the previous year.
Cash flow from operating activities totaled SEK 380 million (249).
Sales of packaged branded products declined organically by 1.8 percent, while
pick-and-mix confectionery sales grew organically by 9.4 percent in the third quarter.
Adjusted operating profit for packaged branded products was SEK 197 million (191), and for pick-and-mix confectionery SEK 62 million (47).
Net debt in relation to EBITDA stood at 1.1 times (1.6) as of September 30.
"After yet another quarter with a significantly strengthened operating margin, we have now successfully established a sustainably higher level of profitability, and are steadily approaching our medium-term goal of achieving an operating margin of at least 12 percent by 2027 at the latest. This lasting improvement in profitability is mainly driven by our continued focus on margin-enhancing measures, ongoing optimization of the product portfolio and cost control, while implementing our strategy for reasonable pricing," commented CEO and Group President Katarina Tell in the interim report.
In April, Cloetta announced plans to better align the company's operational structure with new strategic priorities and increase business flexibility.
"All key project milestones have now been achieved and we still expect to see up to 20 percent of the annual savings of SEK 60-70 million during the second half of the year and
full effect in the first quarter of 2026," added Katarina Tell.
Cloetta AB is a Sweden-based company active in the chocolate and sugar confectionery market. The primary ingredient for its products is cocoa. The Company uses cocoa mass that is produced from seeds found in the fruit of cocoa trees grown along the equator. It produce and sells products within three main categories, namely Chocolate, which comprises chocolate wafers, plates, pralines and dragees; Sugar confectionery, which comprises foam, wine gums, liquorice, toffees, hard boiled candy, chewy candy, toffee/fudge/caramel and lollypops, and Refreshment, which comprises pastilles and chewing gum. The Company owns such brands, as Lakerol, Cloetta, Jenkki, Kexchoklad, Malaco, Sportlife, Saila, Red Band and Sperlari. The Company has 12 production units in six countries. In January 2014, it acquired Alrifai Nutisal AB. In May 2014, it acquired 75% of shares of Aran Candy Ltd and the brand The Jelly Bean Factory, Irish company producing and selling gourmet Jelly Beans.
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