In light of the negative Italian economic development and the performance of Cloetta Italy over the last years, Cloetta has initiated a strategic review of Cloetta Italy. As a consequence of this an indicative valuation of Cloetta Italy shows an impairment requirement of SEK 771m pre-tax and SEK 594m post-tax attributable to Cloetta Italy.
The strategic review of Cloetta Italy is aimed to improve growth and margins of the Cloetta Group and might include a potential divestment of the Italian business. In 2016, Cloetta’s sales in Italy amounted to approximately SEK 750m. A divestment of Cloetta Italy would improve Cloetta’s EBIT margin.
The impairment of Cloetta Italy includes an impairment of goodwill and trademarks relating to the Italian business and will lead to a non-recurring cost item of SEK 771m pre-tax, and SEK 594m post-tax that will be reported in the fourth quarter of 2016.
The impairment is non-cash in nature and will therefore not affect Cloetta’s net debt/EBITDA or the Groups dividend capacity.
This information is information that Cloetta AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 12.30 CET on 18 January 2017.
Jacob Broberg, SVP Corporate Communications & Investor Relations, 46 70 190 00 33.