STOCKHOLM, Sweden, Feb. 17, 2003 (PRIMEZONE) -- The Cloetta Fazer Group's (Stockholm:CFAb) sales in the fourth quarter were up 5% to MSEK 985 (935). Operating profit for the period rose 4% to MSEK 145 (139). Fourth quarter profit accounted for 37% (37) of annual earnings.
"The final quarter of the year is our most significant in terms of earnings, since the Christmas sales fall during this period," according to Cloetta Fazer's CEO Karsten Slotte.
Profit after financial items (for comparable units) was up 13% to MSEK 405 (360) for the full-year. Operating profit for the same period strengthened by 6% to MSEK 394 (372). The operating margin was 12.8 % (12.4) and sales improved by 3% to MSEK 3,085 (3,001).
"I feel we have achieved a strong result, particularly in view of the price increases for cocoa which affected the fourth quarter. Sales in our two main markets, Sweden and Finland, which together account for over 60 per cent of total sales, rose by 2 and 11 per cent, respectively," continued Slotte. "In the Polish market, which is in the midst of dramatic restructuring, sales were down 6%. However, I consider this decrease to be temporary, since we are successively adapting to the new market conditions. It can also be noted that we have continued streamlining the product range and achieved positive sales growth for our key brands.
"The previous year's sale of Business Area Handel and a continued strong cash flow from operating activities has given the Group excellent liquidity and a strong equity ratio. Cloetta Fazer is thus financially well-equipped for the future and has the means for ongoing investment in both organic and acquisition-driven growth," he added.
"While the Nordic region will continue to be the base for our operations, we see potential for expansion in other parts of the Baltic Rim where we have opportunities to increase our market shares," concluded Karsten Slotte.
About Cloetta Fazer
The Cloetta Fazer Group is the Nordic region's largest confectionery company, with a market share of 22%. The company has production facilities and sales companies in Sweden, Finland and Poland, a partly owned sales company in Norway, representation offices in the Baltic countries and sales agencies in the other markets. Cloetta Fazer's strength lies in its many popular brands, such as Fazer Bla, Kexchoklad, Dumle, Geisha, Center and Polly. The number of employees is just over 2,000.
For additional information contact:
CEO, Karsten Slotte telephone +46 (0)8-470 73 87 mobile +46 (0)70-687 99 22 Chief Financial Officer, Curt Petri telephone +46 (0)13-28 51 10 mobile +46 (0)705-93 21 69. This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: www.waymaker.net/bitonline/2003/02/17/20030217BIT00600/wkr0001.doc www.waymaker.net/bitonline/2003/02/17/20030217BIT00600/wkr0002.pdf