STOCKHOLM, Sweden, Oct. 17, 2003 (PRIMEZONE) -- The Cloetta Fazer Group reports sales of MSEK 2,075 (2,100) for the first nine months of the year. Operating profit dropped to MSEK 214 (249). Third quarter sales reached MSEK 695, down by MSEK 26, and operating profit for the third quarter was MSEK 71 (94).
Profit after financial items for the first nine months was MSEK 228 (256).
The total market in Sweden has contracted somewhat, whereas the Finnish market has grown by 6 per cent. Cloetta Fazer succeeded in defending its strong positions in both main markets.
-- Overall operating profit in our two main markets, Sweden and Finland, is on par with the previous year, says Cloetta Fazer's CEO Karsten Slotte. Sales of our key brands continued to rise, while sales of pick- and-mix declined.
-- The drop in profit during the third quarter is attributable to the summer months of July and August, while September has shown positive development, says Karsten Slotte. Cloetta Fazer's third quarter sales outperformed the total market in Sweden and Finland.
Operations in Poland continue to show unfavourable development. Lower sales volumes, rising raw material costs and a weaker currency have generated a deficit in Poland compared with the preceding year. Measures have been taken to reverse the negative trend.
-- Intense competition in the market has narrowed the scope to offset cost increases through higher prices, comments Karsten Slotte.
-- We have now entered our most significant sales period, the fourth quarter, when the Christmas sales take place. The fourth quarter traditionally accounts for around 40 per cent of annual profit. Falling cocoa prices will have only a partial impact on fourth quarter earnings due to forward contracts currently in force, concludes 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 in Sweden, Finland and Poland. 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 2,000 and annual sales in 2002 amounted to SEK 3 billion.
For additional information contact CEO Karsten Slotte, telephone +46 (0)8-470 73 87, mobile +46 (0)70-687 99 22, or Chief Financial Officer Curt Petri, telephone +46(0)13-28 51 10, mobile +46 (0)70-593 21 69.
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