Investment case

Seven reasons to invest in Cloetta

Strong local brands

Cloetta has an extensive portfolio of strong local brands that are well established in the minds of the consumers. The brands have been cherished for generations and consumers have a personal relationship with the brands they have grown up with.

Attractive non-cyclical market

The confectionery market is relatively insensitive to economic fluctuations and shows stable growth that is primarily driven by population trends and price increases. Historically, annual market growth has been between 1 and 2 per cent.

Focus on continued margin expansion

Cloetta’s profitability has improved substantially over the past few years. In order to move towards our financial target to reach an adjusted EBIT margin of at least 14 per cent, there will be a continued focus on cost-effectiveness, growth and profitability.

Clear strategy to deliver growth

In order to drive growth, daily activities to broaden distribution, updating of packaging, promotional and advertising activities, line extensions and the launch of seasonal products are the most important. Added to these are strategic activities such as innovations, geographical roll-outs, brand extensions and brand relaunches. Acquisitions are also part of the growth strategy.

Strong market positions and distribution

In its core markets, Cloetta has strong sales and marketing organizations that have excellent relations with the retail trade. The wide portfolio of market leading products creates economies of scale and the brands are often very important for the retail trade.

Attractive cash flow generation and dividend

Cloetta’s business has a very strong cash-generating capacity. Low and stable capital expenditure combined with effective management of working capital generate robust cash flows and thereby allow for share dividends in accordance with the goal to distribute 40 – 60 per cent of profit for the year.

Sustainable value creation

Our Sustainability Agenda takes a holistic perspective on how to create long-term value. This approach reduces environmental and social risks, and strengthens partnerships 7 for our future.

 

 

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