STOCKHOLM, Sweden, April 17, 2003 (PRIMEZONE) -- The Cloetta Fazer Group's first quarter profit after net financial items improved by more than 5% to MSEK 98 (93), while operating profit amounted to MSEK 92 (91). Starting this autumn, the company plans to invest MSEK 150 in measures to raise production efficiency in both Finland and Sweden.
The operating margin rose to 12.8% (12.3), while sales declined by 3% to MSEK 719 (742).
"The drop in sales during the first quarter is explained by the fact that our substantial Easter sales arrived later than in the preceding year", said Cloetta Fazer's CEO Karsten Slotte. "We mainly see increased sales in the pick-and-mix segment around the Easter holiday."
"It is highly satisfying that the operating margin has continued to rise and, after the first quarter, has reached a level on par with the full year 2002. The key brands are still performing well and this, in combination with effective product management, has contributed to ongoing improvement in the margin," added Karsten Slotte.
In line with Cloetta Fazer's new production strategy, the company has planned investments of around MSEK 150. The first step will involve construction of a new line for wafer products in Ljungsbro, Sweden, where the sugar coating capacity will also be extended. In Vantaa, Finland, the company will build a new line for filled chocolates which is scheduled for completion in autumn 2004.
"This will be our most ambitious investment program for upgrading of production efficiency in many years. The program is entirely consistent with our new strategy to increase specialisation of the production units and our established focus on the key brands. The investments will boost our production capacity and efficiency, since parts of our manufacturing operations are currently operating at the limit", according to 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, Polly and Center. The average number of employees is just over 2,000.
For additional information contact CEO Karsten Slotte, mobile +46 (0)70- 687 99 22 Chief Financial Officer Curt Petri, mobile +46 (0)70-593 21 69
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://www.waymaker.net/bitonline/2003/04/17/20030417BIT00100/wkr0001.doc
http://www.waymaker.net/bitonline/2003/04/17/20030417BIT00100/wkr0002.pdf