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Cloetta Interim / Quarterly Report 2024
3027_ir_2024-07-12_81df8965-bdf5-4acc-8cbe-4bf6ea0e1f56.pdf
Interim / Quarterly Report
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Interim report for April–June 2024
Improved profitability and continued organic growth
Second quarter
- Net sales for the quarter increased by 2.0 per cent to SEK 2,038m (1,998) including a positive impact from foreign exchange rates of 0.7 per cent
- Sales of Branded packaged products increased organically by 1.2 per cent during the quarter
- Sales of Pick & mix increased organically by 3.4 per cent during the quarter
- Operating profit adjusted for items affecting comparability, amounted to SEK 222m (191). Operating profit amounted to SEK 124m (182), impacted by items affecting comparability of SEK -98m (-9)
Events after the end of the reporting period
• There were no significant events after the end of the reporting period
Key ratios
- Operating profit, adjusted, of Branded packaged products amounted to SEK 183m (186)
- Operating profit, adjusted, of Pick & mix amounted to SEK 39m (5)
- Profit for the period amounted to SEK 82m (73), which equates to basic and diluted earnings per share of SEK 0.29 (0.26)
- Cash flow from operating activities was SEK 59m (83)
- Net debt/EBITDA ratio was 1.8x (2.3)
| Second quarter | 6 months | R122 | Full year | |||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2024 | 2023 | ∆, % | 2024 | 2023 | ∆, % | Jul 2023– Jun 2024 |
2023 |
| Net sales | 2,038 | 1,998 | 2.0¹ | 4,132 | 3,971 | 4.1¹ | 8,462 | 8,301 |
| Operating profit, adjusted | 222 | 191 | 16.2 | 414 | 391 | 5.9 | 822 | 799 |
| Operating profit margin, adjusted % | 10.9 | 9.6 | 1.3-pts | 10.0 | 9.8 | 0.2-pts | 9.7 | 9.6 |
| Operating profit (EBIT) | 124 | 182 | -31.9 | 317 | 360 | -11.9 | 692 | 735 |
| Operating profit margin (EBIT margin), % | 6.1 | 9.1 | -3.0-pts | 7.7 | 9.1 | -1.4-pts | 8.2 | 8.9 |
| Profit before tax | 113 | 96 | 17.7 | 261 | 187 | 39.6 | 644 | 570 |
| Profit for the period | 82 | 73 | 12.3 | 189 | 138 | 37.0 | 488 | 437 |
| Earnings per share, basic, SEK | 0.29 | 0.26 | 11.54 | 0.66 | 0.48 | 37.5 | 1.71 | 1.53 |
| Earnings per share, diluted, SEK | 0.29 | 0.26 | 11.54 | 0.66 | 0.48 | 37.5 | 1.71 | 1.53 |
| Net debt/EBITDA, x (Rolling 12 months) | 1.8 | 2.3 | -21.7 | 1.8 | 2.3 | -21.7 | 1.8 | 1.7 |
| Free cash flow | 28 | 2 | 1,300.0 | 127 | -21 | n/a | 644 | 496 |
| Cash flow from operating activities | 59 | 83 | -28.9 | 208 | 107 | 94.4 | 879 | 778 |
1 Organic growth at constant exchange rates was 1.8 per cent for the quarter and 3.8 per cent for the first half of the year. See further under Net sales on page 4. 2 R12 refers to the last 12 months from the reporting date and goes back in time for the previous 12 months.
SEK 2.0 bn 1.8% 10.9%
Net sales Organic sales growth Operating profit margin, adjusted
Conference call and web presentation
A conference call with web presentation for media and the financial community is arranged on the day of report publication at 10:00 a.m. CEST. We kindly ask those who wish to dial-in to make sure you are connected to the phone conference by calling in and to register a few minutes before the conference begins. An on-demand version of the call will be available on www.cloetta.com later the same day.
| Broadcast link | creo-live.creomediamanager.com/1022ca8e-8304-465d-8975-5bcf7eaedfb3 | |||||
|---|---|---|---|---|---|---|
| Dial-in numbers | SE: +46 8 5051 0031 | UK: +44 (0) 207 107 06 13 | US: +1 631 570 5613 |
Comments from the CEO
Improved profitability and continued organic growth
Our operating environment during the second quarter saw a significantly reduced food price inflation than the same quarter last year. We delivered improved profitability and added another quarter of growth to the previous three years of consecutive organic growth. The improved profitability was mainly driven by the full quarterly effect of previous pricing and margin-improving initiatives in Pick & mix.
As this is my first report as CEO of Cloetta, I'm very proud to report a strong quarter with improved profitability. While there is a trend of consumers moving to discount retailers and private label brands when prices are increasing, we have during the quarter continued to deliver stable underlying volumes as a result of the investments made in our core brands over the last couple of years.
Despite new record highs in the cocoa price in the middle of this quarter, we expect to be able to continue to successfully manage the increased input costs also during the remainder of the year. While chocolate products are only one part of our portfolio there might be a negative margin compression effect in the autumn, as the demand for chocolate products typically then increases.
In our previous interim report, we raised the risk of increased VAT in Finland. The Finnish government has now confirmed its intent to implement this change in 2025. We are currently developing options to manage the long-term effects of the change.
Second quarter development
Sales for the quarter increased by 2.0 per cent, of which organic growth accounted for 1.8 per cent, exchange rate differences for 0.7 per cent and the divestment of the Nutisal brand for negative 0.5 per cent. Sales of Branded packaged products increased organically by 1.2 per cent and sales of Pick & mix increased organically by 3.4 per cent.
The adjusted operating profit amounted to SEK 222m (191) and was positively impacted by a higher gross profit mainly driven by a full quarterly effect of previous pricing and margin improving initiatives in Pick & mix, partly offset by the increased investment in our core brands.
Operational and strategic update
Within our Branded packaged products, our continued growth is supported by investments in core brands and recent product launches. Läkerol Strawberry, launched in the first quarter, continues to gain market shares across Scandinavia and attracts also younger consumers to the Läkerol brand. Other successful product launches include Juicy Giants, under the Gott & Blandat brand, and Sportlife Mints, an extension of the Sportlife chewing gum brand.
Overall, we have successfully been able to protect the profit for Branded packaged products despite the input cost hike since last year, and with higher investment in our brands delivered underlying stable volumes. As also stated in previous interim reports, we discontinue products when needed to support our long-term goal of an adjusted EBIT margin of at least 14 per cent. In May we divested the dry roasted nuts brand Nutisal to streamline our brands and product portfolio. Going forward Cloetta continues to provide nuts in the Pick & mix segment.
" As this is my first report as CEO of Cloetta, I'm very proud to report a strong quarter with improved profitability.
For our Pick & mix segment, our target is an EBIT margin in the range of 5–7 per cent in the medium-term and I am very pleased that for the second consecutive quarter, our results reflect our continued focus on premiumising our CandyKing brand. The quarterly result was significantly boosted by continued margin-improving initiatives, such as mix management, merchandising efficiency, and reduced fixture costs. Last year, we launched our first Pick & mix pre-packed mixes for quick commerce in the Nordics, and they have proven to be very relevant in this highly impulse-driven channel.
During the quarter, we decided to start aligning our reporting according to the Corporate Sustainability Reporting Directive (CSRD) requirements already in 2024, one year ahead of the required deadline. I'm proud of this decision, as the CSRD marks a significant step towards accounting for sustainability alongside financial reporting in the EU.
Update on greenfield project
Within our sustainability agenda, we continue to execute on our plan to reduce greenhouse gas emissions with 46 per cent by 2030. One important step on this journey is our greenfield investment in the Netherlands. When operational, the production facility will create capacity for growth and significantly reduce cost, while also reducing greenhouse gas emissions.
The greenfield will be a key contributor to secure and improve on the delivery of our long-term profitability target. When fully operational, the facility will be the first major candy plant running on renewable electricity in Europe. During the quarter, the regulatory permitting process progressed as planned.
Cash flow and Net debt/EBITDA
Despite the normal seasonal inventory build-up in the quarter, we were able to improve on the prior quarter's strong free cash flow generation and deliver a Net debt/EBITDA ratio of 1.8x; the lowest ever in a second quarter and again well below our long-term target of around 2.5x.
Ulrika Palm appointed to the Group Management Team
In June, Ulrika Palm was appointed as incoming President of our largest geographical market, Cloetta Sweden, and I'm excited to welcome her to our Group Management Team. Ulrika is a senior executive with more than twenty years of broad experience in leading positions in both retail and FMCG and her solid experience from both strategic and operational business development, as well as brand development, will be a great addition to our continued growth. Ulrika will join Cloetta at the end of August.
Since recently stepping into my new role, I have spoken to and met team members from across our markets and functions, and new people from both inside and outside of Cloetta. What I have heard has only further strengthened my belief and resolve that our consumer and customer focus, our portfolio of loved brands, and our strong team will enable us to continue to grow profitably and to bring true joy and value to all our stakeholders!
Katarina Tell
President and CEO
Financial overview
Q2 development
Changes in operating environment and short-term uncertainties
Russia's escalation of the war in Ukraine that started in 2022 continues to entail risks of further impact on the global economy, further cost inflation, and disruptions in supply chains, including as the war risks spreading into other geographies.
Greenfield facility
In 2022, Cloetta announced the greenfield investment in the Netherlands with the ambition to create capacity for growth, significantly reduce cost, while reducing greenhouse gas emissions. When fully operational, the greenfield will be the first major candy plant running on renewable electricity in Europe.
As previously communicated, the regulatory approval process for the greenfield facility is expected to take longer than anticipated and the new timeline indicates that the major planned investments will be initiated during 2025. This indicates that the plant will start operations during the second half of 2026.
In 2023, the engineering team in close cooperation with suppliers, were able to conclude the technical ability to build and operate the new factory fully electric. Since the factory had already been designed with around 80 per cent electric functionality, the change is not affecting the timeline and remains within the original investment level.
During the second quarter 2024, the regulatory approval process further progressed, as the local City Council in Roosendaal nearly unanimously approved the zoning plan for the project.
Net sales
Net sales for the quarter increased by SEK 40m to SEK 2,038m (1,998) compared to the same period last year. Organic growth was 1.8 per cent.
| Changes in net sales, % | Apr–Jun 2024 | Jan–Jun 2024 |
|---|---|---|
| Organic growth | 1.8 | 3.8 |
| Structural changes1 | -0.5 | -0.3 |
| Changes in exchange rates | 0.7 | 0.6 |
| Total | 2.0 | 4.1 |
1Structural changes refer to the divestment of the Nutisal brand.
Gross profit
Gross profit, adjusted for items affecting comparability, amounted to SEK 718m (644) which equates to a gross margin, adjusted, of 35.2 per cent (32.2). The increase in gross profit, adjusted, was mainly driven by a full quarterly effect of previous pricing and margin-improving initiatives in Pick & mix. Gross profit amounted to SEK 717m (640) which equates to a gross margin of 35.2 per cent (32.0).
Operating profit
Operating profit, adjusted for items affecting comparability, amounted to SEK 222m (191), and was positively impacted by higher gross profit, partly offset by the increased investments in core brands. Operating profit amounted to SEK 124m (182).
Items affecting comparability
Operating profit for the quarter includes items affecting comparability of SEK -98m (-9), mainly for impairments of intangible assets related to the divestment of the Nutisal brand.
Net financial items
Net financial items for the quarter amounted to SEK -11m (-86). Net interest expenses related to external borrowings, cash pool and realised results on single currency interest rate swaps were in total SEK -24m (-12), exchange differences on cash and cash equivalents were SEK 16m (-66) which mainly related to the development of the Norwegian krona against the euro during the quarter. Other financial items amounted to SEK -3m (-8) of which SEK 5m (0) was related to the unrealised results on single currency interest rate swaps. Of the total net financial items SEK 25m (-42) is non-cash in nature.
Profit for the period
Profit for the quarter was SEK 82m (73), which equates to basic and diluted earnings per share of SEK 0.29 (0.26). Income tax for the period was SEK -31m (-23).
The effective tax rate for the quarter was 27.4 per cent (24.0) and was negatively impacted by the effect of the divestment of the Nutisal brand, international tax rate differences, and an increase of a tax provision in the UK.
Free cash flow
The free cash flow was SEK 28m (2). Cash flow from operating activities before changes in working capital was SEK 230m (226). The cash flow from changes in working capital was SEK -171m (-143).
The cash flow from investments in property, plant and equipment and intangible assets was SEK -31m (-81).
Cash flow from changes in working capital
Cash flow from changes in working capital was SEK -171m (-143). The cash flow from changes in working capital shows normal seasonal pattern and was negatively impacted by an increase in inventories for an amount of SEK -169m (-156) and a decrease in payables of SEK - 37m (-37), partly offset by a decrease in receivables of SEK 35m (50).
Cash flow from other investing activities
Cash flow from other investing activities was SEK 54m (0) and mainly relates to the proceeds from the divestment of the Nutisal brand.
Cash flow from financing activities
The cash flow from financing activities was SEK -306m (-314). The cash flow from financing activities was related to the dividend distribution of SEK -285m (-285), payments of lease liabilities of SEK -18m (-24) and net proceeds and repayments of loans from credit institutions and commercial papers including transaction costs of SEK -3m (-5).
Cloetta Interim report April–June 2024
Development during the year
Net sales
Net sales for the first half of the year increased by SEK 161m to SEK 4,132m (3,971) compared to the same period last year. Organic growth was 3.8 per cent.
Gross profit
Gross profit, adjusted for items affecting comparability, amounted to SEK 1,360m (1,282) which equates to a gross margin, adjusted, of 32.9 per cent (32.3). The increase in gross profit, adjusted, was primarily driven by pricing and mix partially offset by higher input costs and the recognition of a provision for an isolated case of a raw material quality deviation. Gross profit amounted to SEK 1,363m (1,258) which equates to a gross margin of 33.0 per cent (31.7).
Operating profit
Operating profit, adjusted for items affecting comparability, amounted to SEK 414m (391), and was positively impacted by higher gross profit, offset by increased marketing investments in our core brands. Operating profit amounted to SEK 317m (360).
Items affecting comparability
Operating profit for the first half of the year includes items affecting comparability of SEK -97m (-31), mainly for impairments of intangible assets related to the divestment of the Nutisal brand.
Net financial items
Net financial items for the period amounted to SEK -56m (-173). Net interest expenses related to external borrowings, cash pool and realised results on single currency interest rate swaps were in total SEK -39m (-19), exchange differences on cash and cash equivalents were SEK -13m (-137) which mainly related to the development of the Norwegian krona against the euro during the first half of the year. Other financial items amounted to SEK -4m (-17) of which SEK 8m (-7) was related to the unrealised results on single currency interest rate swaps. Of the total net financial items SEK -3m (-57) is non-cash in nature.
Profit for the period
Profit for the period was SEK 189m (138), which equates to basic and diluted earnings per share of SEK 0.66 (0.48). Income tax for the period was SEK -72m (-49).
The effective tax rate for the first half of the year was 27.6 per cent (26.2) and was negatively impacted by the effect of the divestment of the Nutisal brand, international tax rate differences, and an increase of a tax provision in the UK.
Free cash flow
The free cash flow was SEK 127m (-21). Cash flow from operating activities before changes in working capital was SEK 482m (428). The cash flow from changes in working capital was SEK -274m (-321).
The cash flow from investments in property, plant and equipment and intangible assets was SEK -81m (-128).
Cash flow from changes in working capital
Cash flow from changes in working capital was SEK -274m (-321). The cash flow from changes in working capital was negatively impacted by an increase in inventories for an amount of SEK -162m (-339), an increase in receivables of SEK -111m (-186) and a decrease in payables of SEK -1m (204).
Cash flow from other investing activities
Cash flow from other investing activities was SEK 54m (0) and mainly relates to the proceeds from the divestment of the Nutisal brand.
Cash flow from financing activities
The cash flow from financing activities was SEK -328m (-334). The cash flow from financing activities was related to the dividend distribution of SEK -285m (-285), payments of lease liabilities of SEK -40m (-44) and net proceeds and repayments of loans from credit institutions and commercial papers including transaction costs of SEK -3m (-5).
Financial position
Consolidated equity at 30 June 2024 amounted to SEK 5,141m (5,150), which equates to SEK 18.0 (18.0) per share outstanding. Net debt at 30 June 2024 was SEK 1,991m (2,394).
Long-term borrowings amounted to SEK 2,291m (2,360) and consisted of SEK 2,220m (2,276) in gross non-current loans from credit institutions, SEK 81m (95) in non-current lease liabilities and SEK -10m (-11) in capitalised transaction costs.
Total short-term borrowings amounted to SEK 204m (207) and consisted of SEK 149m (149) in commercial papers, SEK 58m (61) in current lease liabilities, SEK 2m (2) in accrued interest on borrowings from credit institutions and SEK -5m (-5) in capitalised transaction costs.
During the second quarter, Cloetta extended the maturities of two of its current loan facilities with the existing bank group by one year each. The extended loans will mature in 2026-2027 with an option to extend one of the facilities to 2028.
| SEKm | 30 Jun 2024 |
30 Jun 2023 |
31 Dec 2023 |
|---|---|---|---|
| Gross non-current loans from credit institutions |
2,220 | 2,276 | 2,187 |
| Commercial papers | 149 | 149 | 149 |
| Lease liabilities | 139 | 156 | 159 |
| Derivative financial instruments | -15 | -52 | -14 |
| Interest payable | 2 | 2 | 2 |
| Gross debt | 2,495 | 2,531 | 2,483 |
| Cash and cash equivalents | -504 | -137 | -658 |
| Net debt | 1,991 | 2,394 | 1,825 |
Cash and cash equivalents at 30 June 2024 amounted to SEK 504m (137). At 30 June 2024 Cloetta had an unutilised credit facility of SEK 2,500m (2,597) and the possibility to issue additional commercial papers for an amount of SEK 850m (850).
Performance by business segment
Cloetta has identified the "Branded packaged products" business and the "Pick & mix" business as its operating segments.
The chief operating decision-maker (CODM), which is the CEO and President of the Group, primarily uses external net sales and operating profit, adjusted for items affecting comparability, to assess the performance of its operating segments. Items affecting comparability, net financial items and income tax are not allocated to segments, as these are managed centrally.
No segment information is provided to or assessed by the CODM on assets and liabilities and therefore these are not separately disclosed.
Information related to each reportable segment (business segment) is set out below.
Business segments
The Cloetta Group comprises two segments: "Branded packaged products" and "Pick & mix". The Pick & mix net sales and adjusted operating profit relate to Cloetta's complete offering in Pick & mix including products, displays and accompanying store and logistic services. All other activities within the Cloetta Group are reflected in the "Branded packaged products" segment.
Segment Branded packaged products
Q2 development
Net Sales
Net sales for the quarter increased by SEK 23m to SEK 1,487m (1,464) compared to the same period of last year for Branded packaged products. Organic growth was 1.2 per cent.
Operating profit, adjusted
Operating profit, adjusted for items affecting comparability, amounted to SEK 183m (186). The decrease in adjusted operating profit is driven by higher input cost and increased marketing investments in our core brands, almost fully offset by pricing and Net Revenue Management activities.
Development during the year Net Sales
Net sales for the first half of the year increased by SEK 88m to SEK 3,000m (2,912) compared to the same period of last year for Branded packaged products. Organic growth was 2.4
Operating profit, adjusted
Operating profit, adjusted for items affecting comparability, amounted to SEK 335m (370). The decrease in adjusted operating profit is driven by higher input cost, increased marketing investments in our core brands and a provision for an isolated case of a raw material quality deviation.
Segment Pick & mix
Q2 development
Net Sales
Net sales for the quarter increased by SEK 17m to SEK 551m (534) compared to the same period of last year. Organic growth was 3.4 per cent.
Operating profit, adjusted
Operating profit, adjusted for items affecting comparability, amounted to SEK 39m (5). The increase in adjusted operating profit is driven by positive mix combined with continued margin-improving initiatives.
Development during the year
Net Sales
Net sales for the first half of the year increased by SEK 73m to SEK 1,132m (1,059) compared to the same period of last year. Organic growth was 7.5 per cent.
Operating profit, adjusted
Operating profit, adjusted for items affecting comparability, amounted to SEK 79m (21). The increase in adjusted operating profit is driven by stable underlying volumes combined with continued margin-improving initiatives.
Other disclosures
Seasonal variations
Cloetta's sales and operating profit are subject to some seasonal variations. Sales in the first and second quarters are affected by the Easter holiday, primarily in Sweden, depending on in which quarter it occurs.
In the fourth quarter, sales are usually higher than in the first three quarters of the year, which is mainly attributable to the sale of products in Sweden in connection with the holiday season.
Employees
The average number of employees during the quarter was 2,591 (2,584).
Events after the end of the reporting period
There were no significant events after the end of the reporting period.
per cent.
Cloetta Interim report April–June 2024
| Apr–Jun 2024 SEKm |
Branded packaged products |
Pick & mix |
Total | Jan–Jun 2024 SEKm |
Branded packaged products |
Pick & mix |
Total |
|---|---|---|---|---|---|---|---|
| Net sales | 1,487 | 551 | 2,038 | Net sales | 3,000 | 1,132 | 4,132 |
| Operating profit, adjusted | 183 | 39 | 222 | Operating profit, adjusted | 335 | 79 | 414 |
| Items affecting comparability | -98 | Items affecting comparability | -97 | ||||
| Operating profit | 124 | Operating profit | 317 | ||||
| Net financial items | -11 | Net financial items | -56 | ||||
| Profit before tax | 113 | Profit before tax | 261 | ||||
| Income tax | -31 | Income tax | -72 | ||||
| Profit for the period | 82 | Profit for the period | 189 |
| Apr–Jun 2023 SEKm |
Branded packaged products |
Pick & mix |
Total | Jan–Jun 2023 SEKm |
Branded packaged products |
Pick & mix |
Total |
|---|---|---|---|---|---|---|---|
| Net sales | 1,464 | 534 | 1,998 | Net sales | 2,912 | 1,059 | 3,971 |
| Operating profit, adjusted | 186 | 5 | 191 | Operating profit, adjusted | 370 | 21 | 391 |
| Items affecting comparability | -9 | Items affecting comparability | -31 | ||||
| Operating profit | 182 | Operating profit | 360 | ||||
| Net financial items | -86 | Net financial items | -173 | ||||
| Profit before tax | 96 | Profit before tax | 187 | ||||
| Income tax | -23 | Income tax | -49 | ||||
| Profit for the period | 73 | Profit for the period | 138 |
| Jan–Jun 2023 SEKm |
Branded packaged products |
Pick & mix |
Total |
|---|---|---|---|
Strategic priorities
1 Growth leadership in Branded packaged products
We have a clear growth strategy for growth for Branded packaged products which focuses on both the core operations and the Group's strong brands, well positioned to respond to the growing consumer trends demanding local brands and innovative offerings with a conscious and sustainable approach.
As branded packaged products have an EBIT margin above the Group average, this segment is important for Cloetta to be able to reach its long-term profitability target. We will also continue to recover the mix within the segment to secure strong profitability.
2 Sustainable value within the Pick & mix business
Pick & mix is an important consumer market as it goes hand in hand with underlying consumer trends such as individualism and sustainable packaging.
The segment is also of importance for our customers as it increases in-store traffic and impacts our ability to sell other categories. From its strong market position Cloetta has good opportunities to develop the category and thereby drive profitability and growth, with the ambition to reach an EBIT margin in the range of 5 –7 per cent in the medium-term.
3 Focus on lower costs and greater efficiency
Cloetta needs to invest to continue to grow. This includes increasing marketing investments for Branded packaged products, adapting to changing consumer and customer demand, and creating capacity to produce more products.
Cloetta's efficiency programmes, together with strengthened corporate culture and processes in One Cloetta, are important drivers to improve the overall profitability which allows for the investments.
4 Sustainability
Cloetta's sustainability agenda, A Sweeter Future, focuses on creating joy and long-lasting value For You, For People and For the Planet. The initiatives within the sustainability agenda cover topics all across the value chain where Cloetta has the ability to make an impact. Further information on Cloetta's sustainability journey is available in the latest Annual Report as well as on www.cloetta.com/en/sustainability/.
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Assurance of the Board of Directors and CEO
The Board of Directors hereby gives its assurance that the interim report provides a true and fair view of the business activities, financial position, and results of operations of the Group and the Parent Company and describes the significant risks and uncertainties to which the Parent Company and the Group companies are exposed. Stockholm, 12 July, 2024.
Cloetta AB (publ)
Morten Falkenberg, Board Chairman Patrick Bergander, Member of the Board Lena Grönedal, Employee Board member Malin Jennerholm, Member of the Board Alan McLean Raleigh, Member of the Board Pauline Lindwall, Member of the Board Camilla Svenfelt, Member of the Board Mikael Svenfelt, Member of the Board
Katarina Tell, President and CEO
The information in this interim report has not been reviewed by the company's auditors.
Upcoming financial reports and events
| Interim report Q3/2024 | 25 October 2024 |
|---|---|
| Group lunch in Stockholm (Nordea) | 9 September 2024 |
| Year-end report 2024 | 29 January 2025 |
Cloetta continuously updates its financial reporting dates and investor events on www.cloetta.com/en/investors/calendar-investors/.
______________________________________________________________
______________________________________________________________
This information is information that Cloetta AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person detailed above, at 07:30 a.m. CEST on 12 July 2024.
______________________________________________________________
Contact
Laura Lindholm Director, Communications and Investor Relations
- 46 76 696 59 40
[email protected] [email protected] [email protected]
Financial statements in summary
Consolidated profit and loss account
| Second quarter | 6 months | R12 | Full year | |||
|---|---|---|---|---|---|---|
| Jul 2023– | ||||||
| SEKm | 2024 | 2023 | 2024 | 2023 | Jun 2024 | 2023 |
| Net sales | 2,038 | 1,998 | 4,132 | 3,971 | 8,462 | 8,301 |
| Cost of goods sold | -1,321 | -1,358 | -2,769 | -2,713 | -5,807 | -5,751 |
| Gross profit | 717 | 640 | 1,363 | 1,258 | 2,655 | 2,550 |
| Selling expenses | -298 | -267 | -565 | -525 | -1,113 | -1,073 |
| General and administrative expenses | -295 | -191 | -481 | -373 | -850 | -742 |
| Operating profit | 124 | 182 | 317 | 360 | 692 | 735 |
| Exchange differences on cash and cash equivalents in foreign currencies |
16 | -66 | -13 | -137 | 81 | -43 |
| Other financial income | 33 | 33 | 68 | 56 | 140 | 128 |
| Other financial expenses | -60 | -53 | -111 | -92 | -269 | -250 |
| Net financial items | -11 | -86 | -56 | -173 | -48 | -165 |
| Profit before tax | 113 | 96 | 261 | 187 | 644 | 570 |
| Income tax | -31 | -23 | -72 | -49 | -156 | -133 |
| Profit for the period | 82 | 73 | 189 | 138 | 488 | 437 |
| Profit for the period attributable to: | ||||||
| Owners of the Parent Company | 82 | 73 | 189 | 138 | 488 | 437 |
| Earnings per share, SEK | ||||||
| Basic1 | 0.29 | 0.26 | 0.66 | 0.48 | 1.71 | 1.53 |
| Diluted1 | 0.29 | 0.26 | 0.66 | 0.48 | 1.71 | 1.53 |
| Number of shares outstanding at end of period1 | 286,065,407 | 285,405,738 | 286,065,407 | 285,405,738 | 286,065,407 | 285,342,034 |
| Average number of shares (basic)1 | 285,834,882 | 285,405,738 | 285,588,458 | 285,405,738 | 285,464,573 | 285,394,917 |
| Average number of shares (diluted)1 | 286,026,245 | 285,640,644 | 285,653,545 | 285,637,835 | 285,469,781 | 285,650,818 |
1 On 30 October 2023, Cloetta purchased 63,704 treasury shares to fulfill its future obligation to deliver shares to the participants of the long-term share-based incentive plan, if vesting conditions are met. On 29 April 2024, a total of 723,373 treasury shares were granted to the participants of the long-term share-based incentive plan 2021 on vesting.
Consolidated statement of comprehensive income
| Second quarter 6 months |
R12 | Full year | ||||
|---|---|---|---|---|---|---|
| SEKm | 2024 | 2023 | 2024 | 2023 | Jul 2023- Jun 2024 |
2023 |
| Profit for the period | 82 | 73 | 189 | 138 | 488 | 437 |
| Other comprehensive income | ||||||
| Remeasurement of defined benefit pension plans | 7 | -5 | 21 | -1 | -20 | -42 |
| Income tax on remeasurement of defined benefit pension plans | -1 | 1 | -4 | 0 | 4 | 8 |
| Items that will never be reclassified to profit or loss for the period |
6 | -4 | 17 | -1 | -16 | -34 |
| Currency translation differences | -101 | 297 | 146 | 372 | -266 | -40 |
| Hedge of a net investment in a foreign operation | 25 | -75 | -36 | -96 | 67 | 7 |
| Income tax on hedge of a net investment in a foreign operation | -5 | 14 | 7 | 18 | -12 | -1 |
| Items that may be reclassified to profit or loss for the period | -81 | 236 | 117 | 294 | -211 | -34 |
| Total other comprehensive income | -75 | 232 | 134 | 293 | -227 | -68 |
| Total comprehensive income, net of tax | 7 | 305 | 323 | 431 | 261 | 369 |
| Total comprehensive income for the period attributable to: | ||||||
| Owners of the Parent Company | 7 | 305 | 323 | 431 | 261 | 369 |
Net financial items
| Second quarter | 6 months | Full year | |||||
|---|---|---|---|---|---|---|---|
| SEKm | 2024 | 2023 | 2024 | 2023 | 2023 | ||
| Exchange differences on cash and cash equivalents in foreign currencies |
16 | -66 | -13 | -137 | 81 | -43 | |
| Other financial income, third parties | 23 | 19 | 45 | 34 | 102 | 91 | |
| Unrealised gains on single currency interest rate swaps | 4 | 3 | 8 | 3 | 5 | - | |
| Realised gains on single currency interest rate swaps | 6 | 11 | 15 | 19 | 33 | 37 | |
| Total other financial income | 33 | 33 | 68 | 56 | 140 | 128 | |
| Interest expenses third-party borrowings and realised losses on single |
|||||||
| currency interest rate swaps | -53 | -42 | -99 | -72 | -205 | -178 | |
| Amortisation of capitalised transaction costs | -1 | -2 | -2 | -3 | -4 | -5 | |
| Unrealised losses on single currency interest rate swaps | 1 | -3 | - | -10 | -35 | -45 | |
| Other financial expenses, third parties | -7 | -6 | -10 | -7 | -25 | -22 | |
| Total other financial expenses | -60 | -53 | -111 | -92 | -269 | -250 | |
| Net financial items | -11 | -86 | -56 | -173 | -48 | -165 |
Condensed consolidated balance sheet
| SEKm | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 5,803 | 6,122 | 5,862 |
| Property, plant and equipment | 1,683 | 1,708 | 1,686 |
| Deferred tax asset | 33 | 66 | 23 |
| Derivative financial instruments | - | 17 | 5 |
| Other financial assets | 4 | 4 | 3 |
| Total non-current assets | 7,523 | 7,917 | 7,579 |
| Current assets | |||
| Inventories | 1,484 | 1,505 | 1,292 |
| Other current assets | 1,249 | 1,322 | 1,136 |
| Derivative financial instruments | 19 | 35 | 18 |
| Cash and cash equivalents | 504 | 137 | 658 |
| Total current assets | 3,256 | 2,999 | 3,104 |
| TOTAL ASSETS | 10,779 | 10,916 | 10,683 |
| EQUITY AND LIABILITIES | |||
| Equity | 5,141 | 5,150 | 5,098 |
| Non-current liabilities | |||
| Long-term borrowings | 2,291 | 2,360 | 2,264 |
| Deferred tax liability | 880 | 929 | 900 |
| Derivative financial instruments | 3 | - | 8 |
| Provisions for pensions and other long-term employee benefits | 355 | 342 | 382 |
| Provisions | 159 | 162 | 160 |
| Total non-current liabilities | 3,688 | 3,793 | 3,714 |
| Current liabilities | |||
| Short-term borrowings | 204 | 207 | 220 |
| Derivative financial instruments | 1 | - | 1 |
| Other current liabilities | 1,728 | 1,764 | 1,636 |
| Provisions | 17 | 2 | 14 |
| Total current liabilities | 1,950 | 1,973 | 1,871 |
| TOTAL EQUITY AND LIABILITIES | 10,779 | 10,916 | 10,683 |
Condensed consolidated statement of changes in equity
| 6 months | Full year | ||
|---|---|---|---|
| SEKm | 2024 | 2023 | 2023 |
| Equity at beginning of period | 5,098 | 4,994 | 4,994 |
| Profit for the period | 189 | 138 | 437 |
| Other comprehensive income | 134 | 293 | -68 |
| Total comprehensive income | 323 | 431 | 369 |
| Transactions with owners | |||
| Purchase of treasury shares | - | - | -1 |
| Share-based payments | 5 | 10 | 21 |
| Dividend1 | -285 | -285 | -285 |
| Total transactions with owners | -280 | -275 | -265 |
| Equity at end of period | 5,141 | 5,150 | 5,098 |
1 The dividend paid in 2024 comprised a dividend of SEK 1.00 (1.00) per share.
Condensed consolidated cash flow statement
| Second quarter | 6 months | R12 | Full year | |||
|---|---|---|---|---|---|---|
| SEKm | 2024 | 2023 | 2024 | 2023 | Jul 2023- Jun 2024 |
2023 |
| Cash flow from operating activities before changes in working capital | 230 | 226 | 482 | 428 | 932 | 878 |
| Cash flow from changes in working capital | -171 | -143 | -274 | -321 | -53 | -100 |
| Cash flow from operating activities | 59 | 83 | 208 | 107 | 879 | 778 |
| Cash flows from investments in property, plant and equipment and intangible assets |
-31 | -81 | -81 | -128 | -235 | -282 |
| Cash flow from other investing activities | 54 | 0 | 54 | 0 | 56 | 2 |
| Cash flow from investing activities | 23 | -81 | -27 | -128 | -179 | -280 |
| Cash flow from operating and investing activities | 82 | 2 | 181 | -21 | 700 | 498 |
| Cash flow from financing activities | -306 | -314 | -328 | -334 | -373 | -379 |
| Cash flow for the period | -224 | -312 | -147 | -355 | 327 | 119 |
| Cash and cash equivalents at beginning of period | 735 | 478 | 658 | 583 | 137 | 583 |
| Cash flow for the period | -224 | -312 | -147 | -355 | 327 | 119 |
| Exchange difference | -7 | -29 | -7 | -91 | 40 | -44 |
| Total cash and cash equivalents at end of period | 504 | 137 | 504 | 137 | 504 | 658 |
Condensed consolidated key figures
| Second quarter | 6 months | R12 | Full year | |||
|---|---|---|---|---|---|---|
| Jul 2023- | ||||||
| SEKm Profit |
2024 | 2023 | 2024 | 2023 | Jun 2024 | 2023 |
| Net sales | 2,038 | 1,998 | 4,132 | 3,971 | 8,462 | 8,301 |
| Net sales, change, % | 2.0 | 22.9 | 4.1 | 25.4 | 10.3 | 20.8 |
| Organic net sales, change, % | 1.8 | 16.7 | 3.8 | 20.0 | 7.7 | 15.7 |
| Gross margin, % | 35.2 | 32.0 | 33.0 | 31.7 | 31.4 | 30.7 |
| Depreciation | ||||||
| -67 | -78 | -142 | -145 | -281 | -284 | |
| Amortisation | -2 | -2 | -5 | -5 | -11 | -11 |
| Impairment loss other non-current assets | -93 | 3 | -88 | 23 | -94 | 17 |
| Operating profit, adjusted | 222 | 191 | 414 | 391 | 822 | 799 |
| Operating profit margin, adjusted % | 10.9 | 9.6 | 10.0 | 9.8 | 9.7 | 9.6 |
| Operating profit (EBIT) | 124 | 182 | 317 | 360 | 692 | 735 |
| Operating profit margin (EBIT margin), % | 6.1 | 9.1 | 7.7 | 9.1 | 8.2 | 8.9 |
| EBITDA, adjusted | 290 | 271 | 561 | 542 | 1,119 | 1,100 |
| EBITDA | 286 | 259 | 552 | 487 | 1,078 | 1,013 |
| Profit margin, % | 5.5 | 4.8 | 6.3 | 4.7 | 7.6 | 6.9 |
| Segments | ||||||
| Branded packaged products | ||||||
| Net sales | 1,487 | 1,464 | 3,000 | 2,912 | 6,241 | 6,153 |
| Operating profit, adjusted | 183 | 186 | 335 | 370 | 751 | 786 |
| Operating profit margin, adjusted % | 12.3 | 12.7 | 11.2 | 12.7 | 12.0 | 12.8 |
| Pick & mix | ||||||
| Net sales | 551 | 534 | 1,132 | 1,059 | 2,221 | 2,148 |
| Operating profit, adjusted | 39 | 5 | 79 | 21 | 71 | 13 |
| Operating profit margin, adjusted % | 7.1 | 0.9 | 7.0 | 2.0 | 3.2 | 0.6 |
| Financial position | ||||||
| Working capital | 1,087 | 1,080 | 1,087 | 1,080 | 1,087 | 796 |
| Capital expenditure | 33 | 102 | 104 | 171 | 312 | 379 |
| Net debt | 1,991 | 2,394 | 1,991 | 2,394 | 1,991 | 1,825 |
| Capital employed | 7,995 | 8,059 | 7,995 | 8,059 | 7,995 | 7,973 |
| Return on capital employed, % (Rolling 12 months) | 10.4 | 10.9 | 10.4 | 10.9 | 10.4 | 10.9 |
| Equity/assets ratio, % | 47.7 | 47.2 | 47.7 | 47.2 | 47.7 | 47.7 |
| Net debt/equity ratio, % | 38.7 | 46.5 | 38.7 | 46.5 | 38.7 | 35.8 |
| Return on equity, % (Rolling 12 months) | 9.5 | 7.3 | 9.5 | 7.3 | 9.5 | 8.6 |
| Equity per share, SEK | 18.0 | 18.0 | 18.0 | 18.0 | 18.0 | 17.9 |
| Net debt/EBITDA, x (Rolling 12 months) | 1.8 | 2.3 | 1.8 | 2.3 | 1.8 | 1.7 |
| Cash flow | ||||||
| Cash flow from operating activities | 59 | 83 | 208 | 107 | 879 | 778 |
| Cash flow from investing activities | 23 | -81 | -27 | -128 | -179 | -280 |
| Cash flow after investments | 82 | 2 | 181 | -21 | 700 | 498 |
| Free cash flow | 28 | 2 | 127 | -21 | 644 | 496 |
| Free cash flow yield (Rolling 12 months), % | 10.9 | 7.9 | 10.9 | 7.9 | 10.9 | 9.5 |
| Cash flow from operating activities per share, SEK | 0.2 | 0.3 | 0.7 | 0.4 | 3.1 | 2.7 |
| Employees | ||||||
| Average number of employees | 2,591 | 2,584 | 2,592 | 2,578 | 2,588 | 2,582 |
Reconciliation of alternative performance measures key figures
| Second quarter | 6 months | R12 | Full year | ||||
|---|---|---|---|---|---|---|---|
| SEKm | 2024 2023 |
2024 | 2023 | Jul 2023- Jun 2024 |
2023 | ||
| Items affecting comparability | |||||||
| Acquisitions, integration and restructurings | -98 | -9 | -97 | -31 | -130 | -64 | |
| of which: impairment loss other non-current assets | -94 | 3 | -88 | 24 | -89 | 23 | |
| Items affecting comparability | -98 | -9 | -97 | -31 | -130 | -64 | |
| Corresponding line in the condensed consolidated profit and loss account: |
|||||||
| Cost of goods sold | -1 | -4 | 3 | -24 | -21 | -48 | |
| Selling expenses | -3 | - | -3 | - | -2 | 1 | |
| General and administrative expenses | -94 | -5 | -97 | -7 | -107 | -17 | |
| Total | -98 | -9 | -97 | -31 | -130 | -64 | |
| Operating profit, adjusted | |||||||
| Operating profit | 124 | 182 | 317 | 360 | 692 | 735 | |
| Minus: Items affecting comparability | -98 | -9 | -97 | -31 | -130 | -64 | |
| Operating profit, adjusted | 222 | 191 | 414 | 391 | 822 | 799 | |
| Net sales | 2,038 | 1,998 | 4,132 | 3,971 | 8,462 | 8,301 | |
| Operating profit margin, adjusted, % | 10.9 | 9.6 | 10.0 | 9.8 | 9.7 | 9.6 | |
| EBITDA, adjusted | |||||||
| Operating profit | 124 | 182 | 317 | 360 | 692 | 735 | |
| Minus: Depreciation | -67 | -78 | -142 | -145 | -281 | -284 | |
| Minus: Amortisation | -2 | -2 | -5 | -5 | -11 | -11 | |
| Minus: Impairment loss other non-current assets | -93 | 3 | -88 | 23 | -94 | 17 | |
| EBITDA | 286 | 259 | 552 | 487 | 1,078 | 1,013 | |
| Minus: Items affecting comparability (excl. impairment loss other non-current assets) |
-4 | -12 | -9 | -55 | -41 | -87 | |
| EBITDA, adjusted | |||||||
| 290 | 271 | 561 | 542 | 1,119 | 1,100 | ||
| Capital employed | |||||||
| Total assets | 10,779 | 10,916 | 10,779 | 10,916 | 10,779 | 10,683 | |
| Minus: Deferred tax liability | 880 | 929 | 880 | 929 | 880 | 900 | |
| Minus: Non-current provisions | 159 | 162 | 159 | 162 | 159 | 160 | |
| Minus: Current provisions | 17 | 2 | 17 | 2 | 17 | 14 | |
| Minus: Other current liabilities | 1,728 | 1,764 | 1,728 | 1,764 | 1,728 | 1,636 | |
| Capital employed | 7,995 | 8,059 | 7,995 | 8,059 | 7,995 | 7,973 | |
| Capital employed comparative period previous year | 8,059 | 7,369 | 8,059 | 7,369 | 8,059 | 7,823 | |
| Average capital employed | 8,027 | 7,714 | 8,027 | 7,714 | 8,027 | 7,898 |
Reconciliation alternative performance measures, continued
| Second quarter | 6 months | R12 | Full year | |||
|---|---|---|---|---|---|---|
| SEKm | Jul 2023- | |||||
| Return on capital employed | 2024 | 2023 | 2024 | 2023 | Jun 2024 | 2023 |
| Operating profit (Rolling 12 months) | ||||||
| Financial income (Rolling 12 months) | 692 | 733 | 692 | 733 | 692 | 735 |
| Operating profit plus financial income (Rolling 12 months) | 140 | 109 | 140 | 109 | 140 | 128 |
| Average capital employed | 832 | 842 | 832 | 842 | 832 | 863 |
| 8,027 | 7,714 | 8,027 | 7,714 | 8,027 | 7,898 | |
| Return on capital employed, % | 10.4 | 10.9 | 10.4 | 10.9 | 10.4 | 10.9 |
| Free cash flow yield | ||||||
| Cash flow from operating activities (Rolling 12 months) | 879 | 677 | 879 | 677 | 879 | 778 |
| Cash flows from investments in property, plant and equipment | ||||||
| and intangible assets (Rolling 12 months) | -235 | -234 | -235 | -234 | -235 | -282 |
| Free cash flow (Rolling 12 months) | 644 | 443 | 644 | 443 | 644 | 496 |
| Number of shares outstanding | 286,065,407 | 285,405,738 | 286,065,407 | 285,405,738 | 286,065,407 | 285,342,034 |
| Free cash flow per share (Rolling 12 months), SEK | 2.25 | 1.55 | 2.25 | 1.55 | 2.25 | 1.74 |
| Market price per share, SEK | 20.62 | 19.61 | 20.62 | 19.61 | 20.62 | 18.32 |
| Free cash flow yield (Rolling 12 months), % | 10.9 | 7.9 | 10.9 | 7.9 | 10.9 | 9.5 |
| Changes in net sales | ||||||
| Net sales | 2,038 | 1,998 | 4,132 | 3,971 | 8,462 | 8,301 |
| Net sales comparative period previous year | 1,998 | 1,626 | 3,971 | 3,166 | 7,674 | 6,869 |
| Net sales, change | 40 | 372 | 161 | 805 | 788 | 1,432 |
| Minus: Structural changes | -10 | - | -10 | - | -10 | - |
| Minus: Changes in exchange rates | 14 | 100 | 23 | 171 | 208 | 356 |
| Organic growth | 36 | 272 | 148 | 634 | 590 | 1,076 |
| Organic growth, % | 1.8 | 16.7 | 3.8 | 20.0 | 7.7 | 15.7 |
Quarterly data
| SEKm | Q2 2024 |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Q4 2022 |
Q3 2022 |
Q2 2022 |
|---|---|---|---|---|---|---|---|---|---|
| Profit and loss account | |||||||||
| Net sales | 2,038 | 2,094 | 2,182 | 2,148 | 1,998 | 1,973 | 1,905 | 1,798 | 1,626 |
| Cost of goods sold | -1,321 | -1,448 | -1,514 | -1,524 | -1,358 | -1,355 | -1,257 | -1,235 | -1,267 |
| Gross profit | 717 | 646 | 668 | 624 | 640 | 618 | 648 | 563 | 359 |
| Selling expenses | -298 | -267 | -300 | -248 | -267 | -258 | -283 | -234 | -246 |
| General and administrative expenses | -295 | -186 | -194 | -175 | -191 | -182 | -178 | -143 | -174 |
| Operating profit/loss | 124 | 193 | 174 | 201 | 182 | 178 | 187 | 186 | -61 |
| Exchange differences on cash and | 16 | -29 | 27 | 67 | -66 | -71 | -27 | -52 | -70 |
| cash equivalents in foreign currencies | |||||||||
| Other financial income | 33 | 36 | 39 | 33 | 33 | 23 | 18 | 35 | 13 |
| Other financial expenses | -60 | -52 | -94 | -64 | -53 | -39 | -28 | -15 | -10 |
| Net financial items | -11 | -45 | -28 | 36 | -86 | -87 | -37 | -32 | -67 |
| Profit/loss before tax | 113 | 148 | 146 | 237 | 96 | 91 | 150 | 154 | -128 |
| Income tax | -31 | -41 | -8 | -76 | -23 | -26 | -42 | -24 | 34 |
| Profit/loss for the period | 82 | 107 | 138 | 161 | 73 | 65 | 108 | 130 | -94 |
| Profit/loss for the period attributable to: | |||||||||
| Owners of the Parent Company | 82 | 107 | 138 | 161 | 73 | 65 | 108 | 130 | -94 |
| Key figures | |||||||||
| Profit | |||||||||
| Depreciation, amortisation and impairment | -162 | -73 | -75 | -76 | -77 | -50 | -70 | -71 | -194 |
| Operating profit, adjusted | 222 | 192 | 200 | 208 | 191 | 200 | 183 | 188 | 162 |
| EBITDA, adjusted | 290 | 271 | 270 | 288 | 271 | 271 | 249 | 255 | 230 |
| EBITDA | 286 | 266 | 249 | 277 | 259 | 228 | 257 | 257 | 133 |
| Operating profit margin, adjusted % | 10.9 | 9.2 | 9.2 | 9.7 | 9.6 | 10.1 | 9.6 | 10.5 | 10.0 |
| Operating profit margin (EBIT margin), % | 6.1 | 9.2 | 8.0 | 9.4 | 9.1 | 9.0 | 9.8 | 10.3 | -3.8 |
| Earnings per share, SEK | |||||||||
| Basic and diluted1 | 0.29 | 0.37 | 0.48 | 0.56 | 0.26 | 0.23 | 0.38 | 0.45 | -0.33 |
| Segments | |||||||||
| Branded packaged products | |||||||||
| Net sales | 1,487 | 1,513 | 1,621 | 1,620 | 1,464 | 1,448 | 1,424 | 1,372 | 1,213 |
| Operating profit, adjusted | 183 | 152 | 200 | 216 | 186 | 184 | 180 | 186 | 154 |
| Operating profit margin, adjusted % | 12.3 | 10.0 | 12.3 | 13.3 | 12.7 | 12.7 | 12.6 | 13.6 | 12.7 |
| Pick & mix | |||||||||
| Net sales | 551 | 581 | 561 | 528 | 534 | 525 | 481 | 426 | 413 |
| Operating profit/loss, adjusted | 39 | 40 | 0 | -8 | 5 | 16 | 3 | 2 | 8 |
| Operating profit margin, adjusted % | 7.1 | 6.9 | 0.0 | -1.5 | 0.9 | 3.0 | 0.6 | 0.5 | 1.9 |
| Financial position | |||||||||
| Share price, last paid, SEK | 20.62 | 18.19 | 18.32 | 18.26 | 19.61 | 21.88 | 20.86 | 17.61 | 20.96 |
| Return on equity, % (Rolling 12 months) | 9.5 | 8.8 | 8.6 | 7.8 | 7.3 | 4.1 | 5.5 | 6.5 | 7.0 |
| Equity per share, SEK | 18.0 | 19.0 | 17.9 | 18.2 | 18.0 | 18.0 | 17.5 | 16.7 | 16.0 |
| Net Debt/EBITDA, x (Rolling 12 months) | 1.8 | 1.6 | 1.7 | 2.0 | 2.3 | 2.0 | 1.9 | 2.2 | 2.4 |
| Cash flow | |||||||||
| Free cash flow | 28 | 99 | 394 | 123 | 2 | -23 | 241 | 223 | -136 |
| Cash flow from operating activities per share, SEK |
0.2 | 0.5 | 1.7 | 0.7 | 0.3 | 0.1 | 1.0 | 1.0 | -0.3 |
1 During 1 till 9 November 2021, during 31 October till 23 November 2022 and on 30 October 2023, Cloetta purchased 1,590,629, 1 ,622,932 and 63,704 treasury shares respectively to fulfil its future obligation to deliver shares to the participants of the long-term share-based incentive plan, if vesting conditions are met. On 29 April 2024, a total of 723,373 treasury shares were granted to the participants of the long-term share-based incentive plan 2021 on vesting.
Reconciliation of alternative performance measures per quarter
| SEKm | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 |
|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2024 | 2023 | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | |
| Items affecting comparability | -98 | 1 | -26 | -7 | -9 | -22 | -18 | -2 | -225 |
| Acquisitions, integration and restructurings of which: impairment loss other non-current |
|||||||||
| assets | -94 | 6 | -5 | 4 | 3 | 21 | -4 | -4 | -126 |
| Other items affecting comparability | - | - | - | - | - | - | 22 | - | 2 |
| Items affecting comparability | -98 | 1 | -26 | -7 | -9 | -22 | 4 | -2 | -223 |
| Corresponding line in the condensed consolidated profit and loss account: |
|||||||||
| Cost of goods sold | -1 | 4 | -21 | -3 | -4 | -20 | 12 | -2 | -220 |
| Selling expenses | -3 | - | - | 1 | - | - | - | - | - |
| General and administrative expenses | -94 | -3 | -5 | -5 | -5 | -2 | -8 | 0 | -3 |
| Total | -98 | 1 | -26 | -7 | -9 | -22 | 4 | -2 | -223 |
| Operating profit, adjusted | |||||||||
| Operating profit | 124 | 193 | 174 | 201 | 182 | 178 | 187 | 186 | -61 |
| Minus: Items affecting comparability | -98 | 1 | -26 | -7 | -9 | -22 | 4 | -2 | -223 |
| Operating profit, adjusted | 222 | 192 | 200 | 208 | 191 | 200 | 183 | 188 | 162 |
| Net sales | 2,038 | 2,094 | 2,182 | 2,148 | 1,998 | 1,973 | 1,905 | 1,798 | 1,626 |
| Operating profit margin, adjusted, % | 10.9 | 9.2 | 9.2 | 9.7 | 9.6 | 10.1 | 9.6 | 10.5 | 10.0 |
| EBITDA, adjusted | |||||||||
| Operating profit | 124 | 193 | 174 | 201 | 182 | 178 | 187 | 186 | -61 |
| Minus: Depreciation | -67 | -75 | -63 | -76 | -78 | -67 | -63 | -62 | -66 |
| Minus: Amortisation | -2 | -3 | -3 | -3 | -2 | -3 | -3 | -3 | -2 |
| Minus: Impairment loss other non-current assets | -93 | 5 | -9 | 3 | 3 | 20 | -4 | -6 | -126 |
| EBITDA | 286 | 266 | 249 | 277 | 259 | 228 | 257 | 257 | 133 |
| Minus: Items affecting comparability (excl. | -4 | ||||||||
| impairment loss other non-current assets) | 290 | -5 271 |
-21 270 |
-11 288 |
-12 271 |
-43 271 |
8 249 |
2 255 |
-97 230 |
| EBITDA, adjusted | |||||||||
| Capital employed | 10,779 | 11,162 | 10,683 | 10,873 | 10,916 | 10,732 | 10,316 | 10,151 | 9,774 |
| Total assets | 880 | 908 | 900 | 922 | 929 | 893 | 884 | 920 | 918 |
| Minus: Deferred tax liability | 159 | 166 | 160 | 165 | 162 | 148 | 107 | 102 | 105 |
| Minus: Non-current provisions | 17 | 16 | 14 | 2 | 2 | 2 | 6 | 3 | 5 |
| Minus: Current provisions | |||||||||
| Minus: Other current liabilities | 1,728 | 1,756 | 1,636 | 1,731 | 1,764 | 1,726 | 1,496 | 1,545 | 1,377 |
| Capital employed Capital employed comparative period previous |
7,995 | 8,316 | 7,973 | 8,053 | 8,059 | 7,963 | 7,823 | 7,581 | 7,369 |
| year | 8,059 | 7,963 | 7,823 | 7,581 | 7,369 | 7,555 | 7,388 | 7,328 | 7,157 |
| Average capital employed | 8,027 | 8,140 | 7,898 | 7,817 | 7,714 | 7,759 | 7,606 | 7,455 | 7,263 |
Reconciliation alternative performance measures, continued
| SEKm | Q2 2024 |
Q1 2024 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Q4 2022 |
Q3 2022 |
Q2 2022 |
|---|---|---|---|---|---|---|---|---|---|
| Return on capital employed | |||||||||
| Operating profit (Rolling 12 months) | 692 | 750 | 735 | 748 | 733 | 490 | 466 | 436 | 429 |
| Financial income (Rolling 12 months) | 140 | 140 | 128 | 107 | 109 | 89 | 83 | 69 | 36 |
| Operating profit plus financial income (Rolling 12 months) |
832 | 890 | 863 | 855 | 842 | 579 | 549 | 505 | 465 |
| Average capital employed | 8,027 | 8,140 | 7,898 | 7,817 | 7,714 | 7,759 | 7,606 | 7,455 | 7,263 |
| Return on capital employed, % | 10.4 | 10.9 | 10.9 | 10.9 | 10.9 | 7.5 | 7.2 | 6.8 | 6.4 |
| Free cash flow yield | |||||||||
| Cash flow from operating activities | |||||||||
| (Rolling 12 months) Cash flows from investments in property, plant |
879 | 903 | 778 | 581 | 677 | 516 | 519 | 606 | 598 |
| and equipment and intangible assets | |||||||||
| (Rolling 12 months) | -235 | -285 | -282 | -238 | -234 | -211 | -214 | -229 | -206 |
| Free cash flow (Rolling 12 months) | 644 | 618 | 496 | 343 | 443 | 305 | 305 | 377 | 392 |
| Number of shares outstanding | 286,065,407 | 285,342,034 | 285,342,034 | 285,405,738 | 285,405,738 | 285,405,738 | 285,405,738 | 287,028,670 | 287,028,670 |
| Free cash flow per share (Rolling 12 months), SEK |
2.25 | 2.17 | 1.74 | 1.20 | 1.55 | 1.07 | 1.07 | 1.31 | 1.37 |
| Market price per share, SEK | 20.62 | 18.19 | 18.32 | 18.26 | 19.61 | 21.88 | 20.86 | 17.61 | 20.96 |
| Free cash flow yield (Rolling 12 months), % | 10.9 | 11.9 | 9.5 | 6.6 | 7.9 | 4.9 | 5.1 | 7.4 | 6.5 |
| Changes in net sales | |||||||||
| Net sales | 2,038 | 2,094 | 2,182 | 2,148 | 1,998 | 1,973 | 1,905 | 1,798 | 1,626 |
| Net sales comparative period previous year | 1,998 | 1,973 | 1,905 | 1,798 | 1,626 | 1,540 | 1,662 | 1,566 | 1,420 |
| Net sales, change | 40 | 121 | 277 | 350 | 372 | 433 | 243 | 232 | 206 |
| Minus: Structural changes | -10 | - | - | - | - | - | - | - | - |
| Minus: Changes in exchange rates | 14 | 9 | 54 | 131 | 100 | 71 | 85 | 52 | 37 |
| Organic growth | 36 | 112 | 223 | 219 | 272 | 362 | 158 | 180 | 169 |
| Organic growth, % | 1.8 | 5.7 | 11.7 | 12.2 | 16.7 | 23.5 | 9.5 | 11.5 | 11.9 |
Parent company
Condensed parent company profit and loss account
| Second quarter | 6 months | R12 | Full year | |||
|---|---|---|---|---|---|---|
| SEKm | 2024 | 2023 | 2024 | 2023 | Jul 2023- Jun 2024 |
2023 |
| Net sales | 41 | 33 | 79 | 61 | 131 | 113 |
| Gross profit | 41 | 33 | 79 | 61 | 131 | 113 |
| General and administrative expenses | -34 | -33 | -70 | -63 | -150 | -143 |
| Operating profit/loss | 7 | 0 | 9 | -2 | -19 | -30 |
| Net financial items | -43 | -21 | -70 | -42 | 1 | 29 |
| Loss before tax | -36 | -21 | -61 | -44 | -18 | -1 |
| Income tax | 8 | 4 | 13 | 9 | 2 | -2 |
| Loss for the period | -28 | -17 | -48 | -35 | -16 | -3 |
Loss for the period corresponds to comprehensive income for the period.
Condensed parent company balance sheet
| SEKm | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | 5,436 | 5,402 | 5,410 |
| Current assets | 185 | 38 | 171 |
| TOTAL ASSETS | 5,621 | 5,440 | 5,581 |
| EQUITY AND LIABILITIES | |||
| Equity | 1,884 | 2,170 | 2,212 |
| Non-current liabilities | |||
| Borrowings | 950 | 943 | 949 |
| Provisions | 2 | 5 | 2 |
| Total non-current liabilities | 952 | 948 | 951 |
| Current liabilities | |||
| Borrowings | 149 | 149 | 149 |
| Other current liabilities | 2,636 | 2,173 | 2,269 |
| Total current liabilities | 2,785 | 2,322 | 2,418 |
| TOTAL EQUITY AND LIABILITIES | 5,621 | 5,440 | 5,581 |
Condensed parent company statement of changes in equity
| 6 months | Full year | ||
|---|---|---|---|
| SEKm | 2024 | 2023 | 2023 |
| Equity at beginning of period | 2,212 | 2,480 | 2,480 |
| Loss for the period | -48 | -35 | -3 |
| Total comprehensive income | -48 | -35 | -3 |
| Transactions with owners | |||
| Share-based payments | 5 | 10 | 21 |
| Purchase of treasury shares | - | - | -1 |
| Dividend1 | -285 | -285 | -285 |
| Total transactions with owners | -280 | -275 | -265 |
| Equity at end of period | 1,884 | 2,170 | 2,212 |
1 The dividend paid in 2024 comprised a dividend of SEK 1.00 (1.00) per share.
Accounting and valuation policies, disclosures and risk factors
Accounting and valuation policies
Compliance with legislation and accounting standards The consolidated financial statements are presented in accordance with the International Financial Reporting Standards (IFRS) established by the International Accounting Standards Board (IASB) and the interpretations issued by the IFRS Interpretations Committee (IFRIC) which have been endorsed by the European Commission for application in the EU. The applied standards and interpretations are those that were in force and had been endorsed by the EU at 1 January 2024. The consolidated interim report is presented compliant with IAS 34, Interim Financial Reporting, and in compliance with the relevant provisions in the Swedish Annual Accounts Act and the Swedish Securities Market Act. The interim report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Securities Market Act, which are consistent with the provisions in recommendation RFR 2, Accounting for Legal Entities. For lease accounting the company makes use of the exemption under RFR2 to treat all leases as operating lease.
Basis of accounting
The same accounting policies and methods of computation are applied in the interim financial statements as in the most recent annual financial statements. Reference is made to Note 1 'General information and accounting and valuation policies of the Group' and Note 31 'Changes in accounting policies' in the Annual and sustainability report 2023 at www.cloetta.com. No new standards are effective as from 1 January 2024 which have been endorsed by the EU.
Disclosures
Disaggregation of revenue from contracts with customers Cloetta generates revenues from the transfer of goods and services at a point in time and over time in the following major sales categories and performance obligations.
Disaggregation of revenue
| Second quarter | 6 months | R12 | Full year | |||
|---|---|---|---|---|---|---|
| SEKm | 2024 | 2023 | 2024 | 2023 | Jul 2023- Jun 2024 |
2023 |
| Branded packaged products | 1,487 | 1,464 | 3,000 | 2,912 | 6,241 | 6,153 |
| Pick & mix | 551 | 534 | 1,132 | 1,059 | 2,221 | 2,148 |
| Total | 2,038 | 1,998 | 4,132 | 3,971 | 8,462 | 8,301 |
Breakdown of net sales by category
| Second quarter | 6 months | R12 | Full year | |||
|---|---|---|---|---|---|---|
| % | Jul 2023- | |||||
| 2024 | 2023 | 2024 | 2023 | Jun 2024 | 2023 | |
| Candy | 63 | 63 | 62 | 62 | 62 | 62 |
| Chocolate | 19 | 19 | 20 | 19 | 20 | 19 |
| Pastilles | 9 | 9 | 9 | 10 | 9 | 10 |
| Chewing gum | 5 | 5 | 5 | 5 | 5 | 5 |
| Nuts | 2 | 2 | 2 | 2 | 2 | 2 |
| Other | 2 | 2 | 2 | 2 | 2 | 2 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 |
Breakdown of net sales by country
| Second quarter | 6 months | Full year | |||||
|---|---|---|---|---|---|---|---|
| Jul 2023- | |||||||
| % | 2024 | 2023 | 2024 | 2023 | Jun 2024 | 2023 | |
| Sweden | 29 | 28 | 29 | 29 | 30 | 30 | |
| Finland | 20 | 22 | 20 | 21 | 20 | 21 | |
| The Netherlands | 15 | 15 | 15 | 15 | 15 | 15 | |
| Denmark | 11 | 9 | 11 | 10 | 11 | 10 | |
| The UK | 6 | 7 | 5 | 6 | 5 | 5 | |
| Norway | 5 | 6 | 6 | 6 | 6 | 6 | |
| Germany | 8 | 6 | 8 | 6 | 7 | 6 | |
| International Markets | 6 | 7 | 6 | 7 | 6 | 7 | |
| Total | 100 | 100 | 100 | 100 | 100 | 100 |
Leases
Right-of-use assets
| SEKm | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
|---|---|---|---|
| Land and buildings | 65 | 94 | 85 |
| Transportation | 65 | 52 | 50 |
| Other equipment | 5 | 8 | 20 |
| Total right-of-use assets | 135 | 154 | 155 |
Additions to the right-of-use assets were SEK 3m (21) during the quarter and SEK 24m (27) for the first half of the year.
| Lease liability | |||||||
|---|---|---|---|---|---|---|---|
| 30 Jun | 30 Jun | 31 Dec | |||||
| SEKm | 2024 | 2023 | 2023 | ||||
| Current | 58 | 61 | 74 | ||||
| Non-current (between 1-5 years) | 71 | 83 | 75 | ||||
| Non-current (over 5 years) | 10 | 12 | 10 | ||||
| Total Lease liability | 139 | 156 | 159 |
The non-current lease liability of SEK 81m (95) is reflected in the 'longterm borrowings'. The current lease liability of SEK 58m (61) is reflected in the 'short-term borrowings'.
Depreciation charge right-of-use assets
| Second quarter | 6 months | R12 | Full year | |||
|---|---|---|---|---|---|---|
| SEKm | 2024 | 2023 | 2024 | 2023 | Jul 2023- Jun 2024 |
2023 |
| Land and buildings | -9 | -9 | -17 | -18 | -36 | -37 |
| Transportation | -9 | -8 | -23 | -15 | -43 | -35 |
| Other equipment | -1 | -7 | -7 | -11 | -20 | -24 |
| Total depreciation charge right-of-use assets | -19 | -24 | -47 | -44 | -99 | -96 |
Other disclosures
| Second quarter | 6 months | R12 | Full year | ||||
|---|---|---|---|---|---|---|---|
| Jul 2023- Jun |
|||||||
| SEKm | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | Recognised in: |
| Interest expense | -1 | -1 | -2 | -2 | -4 | -4 | net financial items, in the profit and loss account |
| Expense relating to leases of low-value assets that are not short term leases |
0 | 0 | -1 | 0 | -2 | -1 | cost of goods sold, selling expenses and general and administrative expenses, in the profit and loss account |
| Expense relating to short term leases, where no right-of-use asset has been recognized |
-2 | -2 | -3 | -3 | -4 | -4 | cost of goods sold, selling expenses and general and administrative expenses, in the profit and loss account |
| Expense relating to variable lease payments not included in lease liabilities |
-8 | -3 | -13 | -13 | -29 | -29 | cost of goods sold, selling expenses and general and administrative expenses, in the profit and loss account |
| Total cash outflow for leases |
-19 | -25 | -43 | -45 | -89 | -91 | cash flow from operating activities and financing activities, in the cash flow statement |
Taxes
The effective tax rate for the period was negatively impacted by an increase of a tax provision in the UK, non-deductible expenses and international tax rate differences.
Fair value measurement
In the second quarter of 2024 a financial instrument categorised at level 3 of the fair value hierarchy was recognised for an amount of SEK 8m for to the contingent earn-out consideration related to the divestment of the Nutisal brand.
The only items recognised at fair value after initial recognition are:
- the interest rate swaps categorised within level 2 of the fair value hierarchy in all periods presented;
- the deferred selling price related to the divestment of the Nutisal brand that is categorised within level 2 of the fair value hierarchy, as well as;
- the contingent earn-out consideration related to the divestment of the Nutisal brand that is categorised within level 3.
The fair values of financial assets (loans and receivables) and liabilities measured at amortised cost are approximately equal to carrying amounts.
For measurement purposes, the fair value of financial assets and liabilities is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. The fair value measurements by level according to the fair value measurement hierarchy are as follows:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (that is, derived from prices) (level 2).
- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).
The following table presents the carrying amounts and fair values of the Group's financial assets and liabilities, including their levels in the fair value hierarchy:
| 30 Jun 2024 | Carrying amount | Fair value | ||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | Mandatorily at FVTPL |
Financial assets at amortised cost |
Other financial liabilities at carrying value |
Total | Level 1 | Level 2 | Level 3 | Total |
| Financial assets | ||||||||
| • Trade and other receivables, excluding other taxes and social security receivables and prepaid |
||||||||
| expenses and accrued income | - | 1,128 | - | 1,128 | ||||
| • Contingent earn-out consideration and deferred selling price |
10 | - | - | 10 | - | 2 | 8 | 10 |
| • Single currency interest rate swaps | 19 | - | - | 19 | - | 19 | - | 19 |
| • Cash and cash equivalents | - | 504 | - | 504 | ||||
| Total assets | 29 | 1,632 | - | 1,661 | - | 21 | 8 | 29 |
| Financial liabilities | ||||||||
| • Loans from credit institutions | - | - | 2,220 | 2,220 | ||||
| • Commercial papers | - | - | 149 | 149 | ||||
| • Single currency interest rate swaps | 4 | - | - | 4 | - | 4 | - | 4 |
| • Trade and other payables, excluding other taxes and social security payables |
- | - | 1,474 | 1,474 | ||||
| Total liabilities | 4 | - | 3,843 | 3,847 | - | 4 | - | 4 |
| 31 Dec 2023 | Carrying amount | Fair value | ||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | Mandatorily at FVTPL |
Financial assets at amortised cost |
Other financial liabilities at carrying value |
Total | Level 1 | Level 2 | Level 3 | Total |
| Financial assets | ||||||||
| • Trade and other receivables, excluding other taxes and social security receivables and prepaid |
||||||||
| expenses and accrued income | - | 989 | - | 989 | ||||
| • Single currency interest rate swaps | 23 | - | - | 23 | - | 23 | - | 23 |
| • Cash and cash equivalents | - | 658 | - | 658 | ||||
| Total assets | 23 | 1,647 | - | 1,670 | - | 23 | - | 23 |
| Financial liabilities | ||||||||
| • Loans from credit institutions | - | - | 2,187 | 2,187 | ||||
| • Commercial papers | - | - | 149 | 149 | ||||
| • Single currency interest rate swaps | 9 | - | - | 9 | - | 9 | - | 9 |
| • Trade and other payables, excluding other taxes and social security payables |
- | - | 1,433 | 1,433 | ||||
| Total liabilities | 9 | - | 3,769 | 3,778 | - | 9 | - | 9 |
| 30 Jun 2023 | Carrying amount | Fair value | ||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | Mandatorily at FVTPL |
Financial assets at amortised cost |
Other financial liabilities at carrying value |
Total | Level 1 | Level 2 | Level 3 | Total |
| Financial assets • Trade and other receivables, excluding other taxes and social security receivables and prepaid expenses and accrued income |
- | 1,152 | - | 1,152 | ||||
| • Single currency interest rate swaps | 52 | - | - | 52 | - | 52 | - | 52 |
| • Cash and cash equivalents | - | 137 | - | 137 | ||||
| Total assets | 52 | 1,289 | - | 1,341 | - | 52 | - | 52 |
| Financial liabilities | ||||||||
| • Loans from credit institutions | - | - | 2,276 | 2,276 | ||||
| • Commercial papers | - | - | 149 | 149 | ||||
| • Trade and other payables, excluding other taxes and social security payables |
- | - | 1,525 | 1,525 | ||||
| Total liabilities | - | - | 3,950 | 3,950 | - | - | - | - |
No transfers between fair value hierarchy levels have occurred during the financial year or the prior financial year. The fair value of financial instruments that are not traded in an active market (for example, over-thecounter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity-specific estimates. If all significant inputs required to determine the fair value of an instrument are observable, the instrument is included within level 2.
The valuation of the instruments is based on quoted market prices, but the underlying swap amounts are based on the specific requirements of the Group. These instruments are therefore included within level 2. The fair value measurement of the contingent earn-out consideration requires the use of significant unobservable inputs and is thereby initially categorised at level 3. The valuation techniques and inputs used to value financial instruments are:
- Quoted market prices or dealer quotes for similar instruments.
- The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves.
- The fair value of forward foreign currency contracts is calculated using the difference between the exchange rate on the spot date with the contractually agreed upon exchange rates.
- Other techniques, such as discounted cash flow analysis, are used to determine the fair value of the remaining financial instruments.
The contingent earn-out consideration is measured at fair value using a scenario model with an earn-out threshold, different results and related changes. These data are aligned with the earn-out contract. The interrelationship between significant unobservable inputs and fair value measurement are: The estimated fair value of the contingent earn-out consideration related to the divestment of the Nutisal brand will increase (decrease) if the forecasted combined sales value of Cloetta and De Monchy Food Group of the Nutisal products during the period 1 July 2024 until 30 June 2025 is higher (lower).
Parent Company
Cloetta AB's primary activities include head office functions such as groupwide management and administration. The comments below refer to the period from 1 January to 30 June 2024. Net sales in the Parent Company amounted to SEK 79m (61) and relate mainly to intra-group services. Operating profit/loss was SEK 9m (-2). Net financial items totalled SEK -70m (-42). Loss before tax was SEK -61m (-44) and loss for the
period was SEK -48m (-35). Cash and cash equivalents and short-term investments amounted to SEK 0m (0).
The Cloetta share
Cloetta's class B share is listed on Nasdaq Stockholm, Mid Cap. During the period from 1 January to 30 June 2024, a total of 282,884,050 shares were traded for a combined value of SEK 2,258m, equivalent to around 44 per cent of the total number of class B shares at the end of the period. The highest quoted bid price during the period from 1 January to 30 June 2024 was SEK 21.36 (25 June) and the lowest was SEK 15.92 (23 April). The share price on 30 June 2024 was SEK 20.62 (last price paid). During the period from 1 January to 30 June 2024, the Cloetta share increased by 12.1 per cent while the Nasdaq OMX Stockholm PI index increased by 8.0 per cent. Cloetta's share capital at 30 June 2024 amounted to 1,443,096,495. The total number of shares is 288,619,299, consisting of 5,735,249 (5,735,249) class A shares and 282,884,050 (282,884,050) class B shares, equal to a quota value of SEK 5 per share. At 30 June 2024, Cloetta had 2,553,892 class B shares in treasury.
Shareholders
On 30 June 2024, Cloetta AB had 42,396 shareholders. The largest shareholder was AB Malfors Promotor with a holding corresponding to 42.9 per cent of the votes and 32.7 per cent of the share capital in the company. LSV Asset Management was the second largest shareholder with 3.2 per cent of the votes and 3.7 per cent of the share capital. The third largest shareholder was Dimensional Fund Advisors with 2.4 per cent of the votes and 2.9 per cent of the share capital.
Cloetta regularly updates its list of shareholders on its investor website www.cloetta.com/en/investors/.
Risk factors
Cloetta is an internationally active company that is exposed to a number of market and financial risks. All identified risks are monitored continuously and, if needed, risk mitigating measures are taken to limit their impact. The most relevant risk factors are described in the Annual and sustainability report 2023 and consist of industry and market-related risks, operational risks and financial risks.
Compared to the Annual and sustainability report, which was issued on 11 March 2024, the risk-profile of Cloetta has not significantly changed although the rising input costs and global supply chain challenges are materialising and may further affect the business performance of Cloetta.
Definitions
| General | All amounts in the tables are presented in SEK millions unless otherwise stated. All amounts in brackets () represent comparative figures for the same period of the prior year, unless otherwise stated. |
||||
|---|---|---|---|---|---|
| Margins | Definition/calculation | Purpose | |||
| Gross margin | Net sales less cost of goods sold as a percentage of Gross margin measures production profitability. net sales. |
||||
| Operating profit margin, adjusted | Operating profit, adjusted for items affecting Adjusted operating profit margin excludes the impact comparability, as a percentage of net sales. of items affecting comparability, enabling a comparison of operational profitability. |
||||
| Operating profit margin (EBIT margin) | Operating profit expressed as a percentage of net sales. |
Operating profit margin is used for measuring the operational profitability. |
|||
| Profit margin | Profit/loss before tax expressed as a percentage of net sales. |
This metric enables the profitability to be compared across locations where corporate taxes differ. |
|||
| Return | Definition/calculation | Purpose | |||
| Free cash flow | Sum of the cash flow from operating activities and The free cash flow is the cash flow available to all cash flow from investments in property, plant and investors consisting of shareholders and lenders. equipment and intangible assets. |
||||
| Free cash flow yield | Free cash flow of the last 12 months divided by the This metric is an indicator for the return on number of outstanding shares at the end of the investment of investors in the company. period and consequently divided by the market price per share at the end of the period. |
||||
| Return on capital employed | Operating profit plus financial income as a percentage of average capital employed. The average capital employed is calculated by taking the capital employed per period end and the capital employed by period end of the comparative period in the previous year divided by two. |
Return on capital employed is used to analyse profitability, based on the amount of capital used. The leverage of the company is the reason that this metric is used next to return on equity, because it includes equity, but takes into account borrowings and other liabilities as well. |
|||
| Return on equity | Profit from continuing operations for the period as a Return on equity is used to measure profit percentage of total equity. generation, given the resources attributable to the owners of the Parent Company. |
||||
| Capital structure | Definition/calculation | Purpose | |||
| Capital employed | Total assets less interest-free liabilities (including deferred tax). |
Capital employed measures the amount of capital used and serves as input for the return on capital employed. |
|||
| Equity/assets ratio | Equity at the end of the period as a percentage of total assets. The equity/assets ratio represents the amount of assets on which shareholders have a residual claim. |
This ratio is an indicator of the company's leverage used to finance the firm. |
|||
| Gross debt | Gross current and non-current borrowings, credit overdraft facilities, lease liabilities, derivative financial instruments and interest payable. |
Gross debt represents the total debt obligation of the company irrespective of its maturity. |
|||
| Net debt | Gross debt less cash and cash equivalents. | The net debt is used as an indication of the ability to pay off all debts if these became due simultaneously on the day of calculation, using only available cash and cash equivalents. |
|||
| Net debt/EBITDA | Net debt at the end of the period divided by the EBITDA, adjusted, for the last 12 months, taking into consideration the annualisation of EBITDA for acquired or divested companies. |
The net debt/EBITDA ratio approximates the company's ability to decrease its debt. It represents the number of years it would take to pay back debt if net debt and EBITDA were held constant, ignoring the impact of cash flows from interest, tax and capital expenditure. |
|||
| Net debt/equity ratio | Net debt at the end of the period divided by equity at The net debt/equity ratio measures the extent to the end of the period. which the company is funded by debt. Because cash and overdraft facilities can be used to pay-off debt at short notice, the leverage takes into account net debt instead of gross debt. |
||||
| Working capital | Total inventories and trade and other receivables adjusted for trade and other payables. |
Working capital is used to measure the company's ability, besides cash and cash equivalents, to meet current operational obligations. |
|||
| Data per share | Definition/calculation | Purpose | |||
| Cash flow from operating activities per share | Cash flow from operating activities in the period divided by the average number of outstanding shares. |
The cash flow from operating activities per share measures the amount of cash the company generates per share from the revenues it brings in, irrespective of the capital investments and cash flows related to the financing structure of the company. |
|||
| Earnings per share | Profit for the period divided by the average number of outstanding shares adjusted for the effect of treasury shares. |
The earnings per share measures the amount of net profit that is available for payment to shareholders per share. |
|||
| Equity per share | Equity at the end of the period divided by number of Equity per share measures the net-asset value outstanding shares at the end of the period. backing up each share of the company's equity and determines if a company is increasing shareholder value over time. |
| Other definitions | Definition/calculation | Purpose | ||
|---|---|---|---|---|
| Amortisation | Amortisation of intangible assets except for Amortisation deviates from depreciation where amortisation on software which is included in amortisation has the purpose to spread capitalised "Depreciation". expenses over the useful lifetime of these expenses. |
|||
| Depreciation | Depreciation of property, plant and equipment and Depreciation deviates from amortisation where amortisation of software. depreciation has the purpose to spread the cost of a non current asset over the useful lifetime of these assets. |
|||
| EBITDA | Operating profit before depreciation, amortisation EBITDA is used to measure the cash flow generated and impairments of other non-current assets. from operating activities, eliminating the impact of financing and accounting decisions. |
|||
| EBITDA, adjusted | Operating profit, adjusted for items affecting Adjusted EBITDA increases the comparability of comparability, before depreciation, amortisation and EBITDA. impairments of other non-current assets. |
|||
| Effective tax rate | Income tax as a percentage of profit before tax. This metric enables the income tax to be compared across locations where corporate taxes differ. |
|||
| Items affecting comparability |
Items affecting comparability are those significant items which are separately disclosed by virtue of their size or incidence, in order to enable a full understanding of the Group's financial performance. These include items such as restructurings, impact from acquisitions or divestments. |
Items affecting comparability increases the comparability of the Group's financial performance. |
||
| Net financial items | The total of exchange differences on cash and cash equivalent in foreign currencies, other financial income and other financial expenses. |
The net financial items reflects the company's total costs of external financing. |
||
| Net sales, change | Net sales as a percentage of net sales in the comparative period of the previous year. |
Net sales, change reflects the company's realised top-line growth over time. |
||
| Operating profit (EBIT) | Operating profit consists of comprehensive income before net financial items and income tax. |
This metric enables the profitability to be compared across locations where corporate taxes differ, irrespective the financing structure of the company. |
||
| Operating profit (EBIT), adjusted | Operating profit adjusted for items affecting Operating profit, adjusted increases the comparability. comparability of operating profit. |
|||
| Organic growth | Net sales, change excluding acquisition-driven growth and changes in exchanges rates. |
Organic growth excludes the impact of changes in group structure and exchange rates, enabling a comparison on net sales growth over time. |
||
| Structural changes | Net sales, change resulting from changes in group structure. |
Structural changes measure the contribution of changes in group structure to the net sales growth. |
Glossary
| Branded packaged products | Products that are mainly sold under brands and are packaged. | |||
|---|---|---|---|---|
| FVTPL | Fair Value Through Profit and Loss. | |||
| Pick & mix | Cloetta's range of candy and natural snacks that are picked by the consumers themselves. | |||
| Pick & mix concept | Cloetta's complete concept in pick & mix including products, displays and accompanying store and logistic services. |
Exchange rates
| SEK | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
|---|---|---|---|
| EUR, average | 11.4002 | 11.3431 | 11.4821 |
| EUR, end of period | 11.3595 | 11.8055 | 11.0960 |
| NOK, average | 0.9918 | 1.0006 | 1.0046 |
| NOK, end of period | 0.9968 | 1.0087 | 0.9871 |
| GBP, average | 13.3421 | 12.9565 | 13.2099 |
| GBP, end of period | 13.4213 | 13.7548 | 12.7680 |
| DKK, average | 1.5287 | 1.5233 | 1.5410 |
| DKK, end of period | 1.5232 | 1.5852 | 1.4888 |
Business model
Cloetta's business model is to offer strong local brands in confectionery and nuts and provide effective sales and distribution to the retail trade. Together, this will ensure continued positive development of the company's leading market positions.
Value drivers
- Strong brands and market positions in a non-cyclical market
- Excellent availability in the retail trade with the help of a strong and effective sales and distribution organisation
- Good consumer knowledge and loyalty
- Innovative product and packaging development
- Effective production with high and consistent quality
About Cloetta
Cloetta, founded in 1862, is a leading confectionery company in Northern Europe. In total, Cloetta products are sold in more than 60 countries worldwide. Cloetta owns some of the strongest brands on the market, such as Läkerol, CandyKing, Jenkki, Kexchoklad, Malaco, Sportlife and Red Band. Cloetta has seven production units in five countries. Cloetta's class B shares are traded on Nasdaq Stockholm.
Cloetta AB (publ)
Corp. ID no. 556308-8144 Landsvägen 50A, Box 2052, 174 02, Sundbyberg, Sweden
Tel +46 (0)8-52 72 88 00 More information about Cloetta is available at www.cloetta.com
