Financial goals

 

Cloetta’s proximity to customers and consumers, and knowledge of local and regional market conditions – combined with strong local brands, efficient production and innovativeness – represent key competitive factors for continued growth. 

Organic sales growth

Cloetta’s long-term target is to increase organic sales at least in line with market growth.

Activities to reach the target

Improve competitive power of the brands by improving partnership with customers, having better category and brand plans, be more effective in marketing, increase brand investments and offer consumers choice with less sugar.

Comments on the outcome 2018

Historically, total annual growth in the markets where Cloetta is active has been around 1–2 per cent. In 2018 organic growth accounted for –2.8 per cent, due entirely to decreased pick & mix sales caused primarily by a lost contract in Sweden and the significantly raised sugar tax in Norway. Sales of branded packaged products grew by 1,5% and pick & mix sales decreased by 12.8%.

EBIT margin

Cloetta’s target is an EBIT margin, adjusted, of at least 14 per cent.

Activities to reach the target

Drive sales growth, create synergies from the acquisition of Candyking, reduce the cost base and drive the Lean2020 program to improve capacity and reduce cost.

Comments on the outcome 2018

The EBIT margin, adjusted improved during the year, mainly due to growth in sales of branded packaged products, higher production volumes and good cost control, partly offset by higher production costs.

Net debt

Cloetta’s long-term target is a net debt/EBITDA ratio of around 2.5.

Activities to reach the target

Cloetta has been able to reach the target the last two year and the ambition is to stay at this level.

Comments on the outcome 2018

In 2018, and for the third year in a row, Cloetta met its long-term target for net debt/EBITDA. Net debt/EBITDA reached 2.31x, which is lower than the target of 2.5x.

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Dividend policy

Cloetta’s long-term intention is a dividend payout of 40–60 per cent of profit after tax.

Activities to reach the target

Cloetta has been paying dividend in line with the target for the last three years.

Comments on the outcome 2018

Given that the year’s profit was higher compared to the previous year, the Board of Directors decided a dividend of SEK 1.00 (0.75) per share for 2018, which corresponds to 60 per cent of the profit for the period.

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