Annual and
Sustainability
Report 2024
Spreading
true joy
Contents
Cloetta at a glance 3
CEO comment
6
Targets & strategy
Long-term financial targets 8
Strategic priorities 10
Market & consumer
The market 12
Consumer trends and behaviors 14
Know our consumer – bring moments of Joy 16
Accelerate brand strength and
grow consumer base
18
Sustainability agenda
20
For You 21
For People 22
For the Planet 23
Main markets
24
Share & shareholders
29
Financial performance
Net sales and profit 33
Financial position 36
Cash flow statement 38
Future outlook 39
Environmental impact and environmental
management
39
Risks & Corporate Governance
Risks and risk management 40
Chairman’s Comment 45
Corporate Governance Report 46
Remuneration of the Group
Management Team
53
Internal control over financial reporting 56
Board of Directors 58
Group Management Team 60
Sustainability report
62
General information 63
Environmental information 74
Social information 92
Governance information 104
Financial reports
110
Consolidated financial statements 111
Parent Company financial statements 150
Proposed appropriation of earnings 159
Auditor’s report 160
Ten-year overview 164
Key ratios 166
Reconciliation of alternative
performance measures
168
Glossary 170
Definitions 171
Shareholder information 174
The auditors have audited the annual accounts and
consolidated accounts of Cloetta AB (publ) for the
year 2024 except for the corporate governance
statement on pages 46–61 and the sustainability
report on pages 62–106. The annual accounts and
consolidated accounts of the company are included
on pages 33–159 in this document. While every care
has been taken in the translation of this Annual and
Sustainability Report, readers are reminded that the
original Annual and Sustainability Report, signed by
the Board of Directors or in European Single Elec-
tronic Format (ESEF), is in Swedish. The Annual
and Sustainability Report in ESEF is published on
www.cloetta.com.
Spreading true joy
Cloetta is a leading confectionery company
in Northern Europe and home to some of the
strongest brands on the market.
Our main markets are Sweden, Finland, Denmark,
Norway, the Netherlands, Germany and the UK.
Cloetta’s class B-shares are traded on Nasdaq
Stockholm.
CEO
comment
Targets &
strategy
Market &
consumer
Sustainability
Main
markets
Share &
shareholders
Financial
performance
Risks & Corporate
Governance
Sustainability
report
Financial
reports
2 Cloetta Annual and Sustainability Report 2024
<< Content
Cloetta is a proud provider of joyful
moments – our brands and products bring fun
and joy to memorable occasions
Cloetta at a glance
Net sales by category and country
62%
Candy
21%
Chocolate
9%
Pastilles
5%
Chewing gum
2%
Other
1%
Nuts
62%
30%
20%
14%
11%
7%
6%
5%
7%
21%
9%
5%
2%
1%
30%
Sweden
20%
Finland
14%
The Netherlands
11%
Denmark
7%
Germany
7%
International
Markets
6%
Norway
5%
The UK
Operations in
11
countries
Organic sales growth
4.7%
Free cash flow
602
SEKm
This report is our first
step aligning with
CSRD
EU Corporate Sustainability
Reporting Directive
Net debt/EBITDA
1.3x
Dividend of
1.10
SEK per share
Operating profit
(EBIT), adjusted
910
SEKm
Operating profit
margin, adjusted
10.6%
More than
60
countries with sales
10 largest brands
more than
50%
of total sales
Net sales
8,613
SEKm
Total number
of employees
2,600
(average 2024)
(Board of Directors’ proposal to AGM)
CEO
comment
Targets &
strategy
Market &
consumer
Sustainability
Main
markets
Share &
shareholders
Financial
performance
Risks & Corporate
Governance
Sustainability
report
Financial
reports
3Cloetta Annual and Sustainability Report 2024
<< Content
Business segments
Pick & mix
This segment is primarily characterised by
contracts where Cloetta manages the customers’
sales of candy when sold through in-store fixtures
that allow shoppers to pick individual pieces of
candy to create their own customised bag.
The assortment of products, which is central to
the offering, is managed by Cloetta and products
are manufactured by Cloetta or by third parties,
including competitors. Other aspects of the
contract, such as fixtures, merchandising, and the
use of the CandyKing brand varies by customer.
28%
Per cent of net sales
Branded packaged
products
This segment is primarily characterised by
Cloetta manufacturing, marketing and selling
packaged products under strong consumer
brands. To build long-term brand health, and
consequently consumer preference and retail
sales, Cloetta invests significantly in new
product and packaging development,
advertisement and promotion of the brands.
72%
Per cent of net sales
CEO
comment
Targets &
strategy
Market &
consumer
Sustainability
Main
markets
Share &
shareholders
Financial
performance
Risks & Corporate
Governance
Sustainability
report
Financial
reports
4 Cloetta Annual and Sustainability Report 2024
<< Content
Nov
Jun
Mar
Oct
Jul
Feb
Sep
Aug
Jan
Dec
May
Apr
• The Q4 report
shows highest-
ever full year
adjusted operating
profit
Key highlights
• Ulrika Palm is appointed
as President Sweden
• The Nomination Committee
for the AGM 2025 is appointed
• The Q3 report shows
continued organic growth
and strengthened profit
• Cloetta Denmark wins
retailer Salling Group’s
Best Trade Event Award for
in-store impact with Läkerol
and Malaco in focus
• Cloetta grants the wish to
swim in a pool of candy with
Make-A-Wish Netherlands
• The beloved Tupla chocolate bar,
launched in Finland in 1960, is now
also available in two different ice
cream flavours
• Investment in greenfield plant in
the Netherlands put on hold and
reassessment initiated
• Nutisal brand divested
to further focus on core
portfolio
• The Q2 interim report shows
improved profitability and
continued organic growth
• Cloetta cheers for the athletes in
Paris by donating a load of xylitol
chewing gum jars and nuts to the
Finnish Olympic Committee
• President and CEO Henri de
Sauvage-Nolting resigns
• The 2023 Q4 interim report
is published
• The Nomination Committee
proposes Morten Falkenberg
as the new Chairman
• President Sweden Katarina Tell
is appointed President and CEO,
effective no later than September
• The Q1 interim report shows
a protected profit despite the
historically high cocoa price
2024
2025
Jan
CEO
comment
Targets &
strategy
Market &
consumer
Sustainability
Main
markets
Share &
shareholders
Financial
performance
Risks & Corporate
Governance
Sustainability
report
Financial
reports
5Cloetta Annual and Sustainability Report 2024
<< Content<< Content
In the end of the third quarter we took on
the challenge to continue delivering double-
digit adjusted profitability in the fourth
quarter, despite continued raw material
cost inflation. I am pleased to say that we
more than met that challenge. In addition
to keeping volumes stable and without
reducing long-term investments in our core
brands, we were able to deliver our highest
ever full-year adjusted operating profit of
SEK 910m (799), and an adjusted profit-
ability of 10.6 per cent.
Sales for the year increased by SEK
312m and amounted to SEK 8.6b, of which
organic growth accounted for 4.7 per
cent. Improved cash flow generation con-
tinues and we delivered an all-time low net
debt/EBITDA ratio of 1.3x, well below our
long-term target of approximately 2.5x.
The proposal from the Board to increase
the dividend to SEK 1.10 is supported
by our continued ability to deliver very
healthy cash flows and a strong balance
sheet.
Flexibility in the product portfolio
A key success factor for Cloetta is our
diversified portfolio with several different
product categories, which, gives us the flex-
ibility to quickly target our activation efforts
to meet strong demand or ups and downs
in input costs. It is widely known that cocoa
prices have risen sharply during the year,
which among other things led us to shift our
focus to activate non-chocolate categories
in the fourth quarter to compensate for the
higher raw material costs. Cloetta applies a
fair pricing strategy, where we handle cost
increases by charging them to our custom-
ers, but we also have the ability to focus on
other categories to maintain or strengthen
our profitability.
Our work to improve profitability is per-
haps best exemplified by the development
of our Pick & mix segment with profitability
in line with the long-term target of 5-7 per
cent in each quarter of the year. We have
indeed successfully rebuilt the Pick & mix
segment after the pandemic and the cate-
gory is today the fastest growing confec-
tionery category in the Nordic region.
In May we divested the Nutisal brand
to further focus on our core confectionery
product portfolio. To ensure the profita-
bility of our growth opportunities, we will
continue to optimise our product portfolio.
This includes reducing SKU’s with lower
profitability and maximising our produc-
tion capacity.
Responsive to consumer trends
Another key success factor is our ability to
respond to prevailing consumer trends. We
continue to see further growth opportuni-
ties based on post-pandemic consumer
behaviors and long-term consumer trends.
The recent increased interest in Pick & mix
in the US, known in social media as Swedish
Words from the President
CEO comment
Another year of
profitable growth
I am very pleased with the past year, as many things are progressing in the right direction
and our initiatives are delivering results. We leave a very successful 2024 behind us with
strong sales growth, stable total volumes and improved profitability, mainly driven by our
margin-enhancing initiatives in the Pick & mix segment.
We have indeed
successfully rebuilt
the Pick & mix segment
after the pandemic
and the category is
today the fastest
growing confec-
tionery category
in the Nordic
region
6 Cloetta Annual and Sustainability Report 2024
CEO
comment
Targets &
strategy
Market &
consumer
Sustainability
Main
markets
Share &
shareholders
Financial
performance
Risks & Corporate
Governance
Sustainability
report
Financial
reports
<< Content<< Content
Candy, continues to drive growth in our rel-
atively small business in North America, and
is a good example of our opportunities to
grow further. Our sales to the US grew by
approximately 30 per cent in 2024.
In our Branded packaged products
segment, continued growth is driven by
investments in core brands and new prod-
uct launches. During the year, we imple-
mented several successful examples of our
ability to extend our strong brands with new
lines and focus on new target groups, such
as Gott & Blandat Juicy Giants, Chewits
Jewels and Läkerol Strawberry.
During the year, and as part of our
sustainability agenda, we decided to start
aligning our reporting according to the
Corporate Sustainability Reporting Direc-
tive (CSRD) requirements already in 2024,
one year ahead of the required deadline.
I am proud of this decision, as CSRD
marks a significant step towards compara-
ble accounting for sustainability reporting
alongside financial reporting.
The right path forward
Since I assumed my new role during the
summer, I have together with the Group
Management Team worked on updating the
long-term plan for Cloetta. I am incredibly
proud of the work my colleagues across the
organisation are doing to help strengthen
Cloetta’s position in an evolving world.
As previously communicated, the chal-
lenge relating to energy supply in Europe
has impacted our strategic plan to ensure
an efficient manufacturing structure. In
September 2024, we decided to initiate
a reassessment and put the greenfield
investment in the Netherlands that was
announced in 2022, on hold. In February
2025, we decided not to proceed with the
investment due to the previously commu-
nicated increased risk relating to energy
supply and the still on-going permitting
process. Cloetta has the ability to develop
long-term financial and supply network
flexibility without the greenfield plant and
can focus on both its own current and
contract manufacturing network.
I look forward to continuing to bring
both joy to consumers and value to our
shareholders!
Stockholm, March 2025
Katarina Tell
CEO and President
Net sales
SEKm
10,000
8,000
6,000
4,000
2,000
0
0
2000
4000
6000
8000
10000
20242023202220212020
Operating profit, adjusted
SEKm
1,000
800
600
400
200
0
0
200
400
600
800
1000
20242023202220212020
Free cash flow
SEKm
800
700
600
500
400
300
200
100
0
0
100
200
300
400
500
600
700
800
20242023202220212020
Without
reducing long-
term investments
in our core brands,
we were able to
deliver our highest
ever full-year
adjusted oper-
ating profit of
SEK 910m
7Cloetta Annual and Sustainability Report 2024
CEO
comment
Targets &
strategy
Market &
consumer
Sustainability
Main
markets
Share &
shareholders
Financial
performance
Risks & Corporate
Governance
Sustainability
report
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reports
<< Content<< Content
Targets
Long-term financial targets
Net sales and
organic sales growth
SEKm %
9,000
6,000
3,000
0
-3,000
-6,000
-9,000
-9000
-6000
-3000
0
3000
6000
9000
20242023202220212020
-1 8
-1 2
-6
0
6
12
18
Net sales Organic sales growth
EBIT and margin, adjusted
SEKm %
1,000
800
600
400
200
0
0
200
400
600
800
1000
20242023202220212020
0
3
6
9
12
15
EBIT, adjusted EBIT margin, adjusted
Net debt/EBITDA
SEKm %
2,400
2,000
1,600
1,200
800
400
0
0
400
800
1200
1600
2000
2400
0
1
2
3
20242023202220212020
Net debt, SEKm Net debt/EBITDA, x
Dividend policy (share of profit)
%
100
80
60
40
20
0
0
20
40
60
80
100
2024
**
2023
*
2022
*
20212020
* Adjusted for items affecting comparability relating
to the greenfield facility.
** Excluding the impact of the impairment and other
items affecting comparability relating to the divest-
ment of the Nutisal brand.
Target
1–2 %
Target
≥14 %
Target
2.5x
Target
40–60%
Organic sales growth
Cloetta’s long-term target is to grow organically by 1–2 per cent,
which is in line with or better than the market.
Comment on the year’s outcome: Organic growth was 4.7 per cent, resulting in Net
sales for the second time in Cloetta’s history exceeding SEK 8 billion. Sales of Branded
packaged products increased organically by 1.9 per cent mainly driven by pricing enabled
by the strengthening of our core brands, including the product category mix, and strong
in-store execution. Sales of Pick & mix increased organically by 12.8 per cent mainly driven
by increased volumes and the continued premiumisation of the offering.
EBIT margin
Cloetta’s long-term target is an adjusted EBIT margin of at least 14 per cent.
Comment on the year’s outcome: The adjusted EBIT margin amounted to 10.6 per cent,
mainly driven by margin enhancing activities in Pick & mix. The full year adjusted operating
profit of SEK 910m (799) was the highest-ever in Cloetta’s history.
Net debt
Cloetta’s long-term target is a net debt/EBITDA ratio of around 2.5x.
Comment on the year’s outcome: In 2024, Cloetta continued to deliver very strong
cash flow, resulting in the lowest net debt/EBITDA in the company’s history, of 1.3x, well
below the long-term target of 2.5x.
Dividend policy
Cloetta’s policy is to have a dividend payout ratio of 40 to 60 per cent
of profit for the year.
Comment on the year’s outcome: The Board of Directors of Cloetta AB proposes to
distribute an increased dividend to the shareholders of SEK 1.10 (1.00) per share for the 2024
financial year, corresponding to 66 per cent (65) of profit for the year, and corresponding
to 57 per cent of the profit for the year excluding impact of the impairment and other items
affecting comparability relating to the divestment of the Nutisal brand. The ambition is to
continue using future cash flows for payment of share dividends, while at the same time
providing financial flexibility for planned investments.
8 Cloetta Annual and Sustainability Report 2024
CEO
comment
Targets &
strategy
Market &
consumer
Sustainability
Main
markets
Share &
shareholders
Financial
performance
Risks & Corporate
Governance
Sustainability
report
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reports
<< Content
We believe
in the Power
of True Joy
9Cloetta Annual and Sustainability Report 2024
CEO
comment
Targets &
strategy
Market &
consumer
Sustainability
Main
markets
Share &
shareholders
Financial
performance
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Governance
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report
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reports
<< Content
Long-
term
* Operating profit margin, adjusted.
14%
Strategic building blocks to
deliver margin expansion
Road to 14 %
11.4%
*
10.6%
*
FY 2024
≥14%
*
2019
Pick & mix
volumes
and value
Covid-19 and
cost inflation
2022–2023
Branded
mix and
volume
Perfect
Factory
Net
revenue
manage-
ment
Greenfield
facility
(decision
not to
proceed
taken in
2025)
Swedish
Pick & mix
business
at break-
even
VIP+
cost
reduction
Organic sales growth in
Branded packaged products
Change from previous year
SEK m
7,5 00
6,000
4,500
3,000
1,500
0
0
1500
3000
4500
6000
7500
Q4Q3Q2Q1Q4Q3Q2Q1
2023
2024
0
5
10
15
20
25
Rolling 12 months NSV
Organic net sales growth
Strategic priorities
Cloetta is a proud provider of joyful moments – our brands and products
bring fun and joy to memorable occasions. We are convinced that our
consumer focus is the basis for us to grow and our brands to flourish.
P&M delivering targeted profitability margin
consistently throughout 2024
Operating profit margin, adjusted
2018 2023 2024
Mid-term
EBIT margin
target
• Pricing strategy
• Margin focus
• Volume gains
Swedish
Pick & mix
business
at break-
even
Covid-19
impact
Input
cost
inflation
Pricing
Full
pricing
Volume
recovery
& margin
focus
1–2%
1%
5–7%7%
Cloetta’s
strengths
• Strong leading
brands
• Core markets in
stable Northern
Europe
• Strong European
leader in Pick & mix
• Scale benefits in
Northern Europe
versus local
competition
• Route-to- market
scale in core
markets
• Effective launch of
novelty products
Cloetta aims to strengthen its position as the
leading confectionery company in Northern
Europe within the candy, chocolate, pas-
tilles, chewing gum categories as well as in
the Pick & mix segment. Our aim is to grow
in line with or better than the long-term
trend in our core markets and even higher
growth beyond our core markets through
the expansion of selective brands. We con-
tinuously develop new innovative offerings
and further strengthen our e-commerce
and q-commerce focus. Furthermore, we
aim to achieve an adjusted EBIT margin of at
least 14 per cent, by driving further volumes,
favourable mix and product and packaging
innovation in both business segments. In
addition, we will continue to drive further cost
savings and efficiency activities throughout
the organisation and the entire value chain.
Organic sales
growth in Pick & mix
Change from previous year
SEK m
2,500
2,000
1,500
1,000
500
0
0
500
1000
1500
2000
2500
Q4Q3Q2Q1Q4Q3Q2Q1
2023
2024
%
SEK m
0
10
20
30
40
50
Rolling 12 months NSV
Organic net sales growth
10 Cloetta Annual and Sustainability Report 2024
CEO
comment
Targets &
strategy
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consumer
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markets
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shareholders
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performance
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Business models within Pick & mix
Per cent of Pick & mix net sales
1
Growth leadership in
Branded packaged
products
We have a clear growth strategy for
Branded packaged products which
focuses on both the core operations and
our strong brands, well positioned to
respond to the growing consumer trends
demanding innovative offerings with a
sustainable approach. As Branded
packaged products have an EBIT mar-
gin above the Group average, this seg-
ment is important for Cloetta to be able
to reach its long-term profitability target.
Achievements 2024
In 2024, Branded packaged products
continued its growth journey. This was
achieved mainly through successful
marketing and strong innovation initia-
tives enabling successful in-store exe-
cution and continued solid fair pricing
execution. We have continued to focus
on recovering sales of high-margin
products such as chewing gum and
pastilles with milestone product
launches like Läkerol Strawberry in the
Nordics and Sportlife Sweet Gums in
the Netherlands.
The comparative figures for the busi-
ness segment for 2023 include a full
year of net sales of the Nutisal brand,
divested in the second quarter of 2024.
2
Sustainable value
within the Pick & mix
business
Pick & mix is an important consumer mar-
ket as the concept matches underlying
consumer trends such as individualisation
and sustainable packaging. The segment is
of importance for our customers as it also
increases in-store traffic and impacts our
ability to sell other categories. Cloetta’s
strong market position has enabled the
development of the category and the Pick
& mix business. We continue to focus on
creating sustainable value within the seg-
ment through continued margin enhancing
activities, and volume.
Achievements 2024
The Pick & mix segment has continued to
deliver growth, both in volume and value, for
fifteen consecutive quarters. We have con-
tinued expanding with e-commerce and
q-commerce pilots. We also continued to
secure the extension of contracts in several
of our markets, proving the attractiveness
of our CandyKing concept to the retailers.
Our CandyKing brand communication was
visible in both paid media as well as earned
traditional and social media, partly driven
by the global Swedish candy trend on social
media. Last quarter of 2024 was the fourth
consecutive quarter of profitability in line
with the long-term target of 5–7 per cent.
3
Lower costs
and greater
efficiency
Cloetta invests to continue to grow.
This includes increasing marketing
investments in core brands in Branded
packaged products, adapting to
changing consumer and customer
demand, and creating capacity to
produce more products. Cloetta’s
efficiency programmes are important
drivers to improve the overall profitability
which allows for the investments.
Achievements 2024
During the year, our efficiency pro-
grammes including the VIP+ cost
programme, the Perfect Factory
programme, and the Net Revenue
Management programme progressed
as planned, delivering improvements
that helped offset input cost inflation
and strengthen our operating profit.
57% Full concept
Includes branding, assort-
ment, fixtures and in-store
merchandising
27% Bulk
Bulk sales to other pick &
mix concepts or sales of
individual products
16% Trade own
Similar to the full concept
but products are sold
under the retailer’s own
private brands
57%
27%
16%
Growth
leadership
in Branded
packaged
products
Lower costs
and greater
efficiency
Sustainability
Sustainable value within
the Pick & mix business
1
2
3
Strategic priorities
11Cloetta Annual and Sustainability Report 2024
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Our market
The confectionery market is traditionally divided into candy, chocolate,
pastilles and chewing gum. Cloetta is active in all these categories, as well
as in the nuts category in the Pick & mix business segment.
The confectionery market
The total market for confectionery in
Cloetta’s main markets amount to approxi-
mately SEK 387bn (339).
The confectionery market is relatively
insensitive to economic fluctuations and
shows stable growth that is driven primarily
by population trends and price increases.
Market recessions affect us mainly through
general price pressure from the retail
trade and increased competition from the
trade’s own private labels. Private labels
still account for a relatively small share of
confectionery compared to other grocery
products; however, they grew their market
share within confectionery in 2024.
Consumption patterns
Confectionery is one of the most impulse-
driven categories in the retail trade. Up to
80 per cent of purchasing decisions are
made at the point of sale. Brand awareness,
availability, and product placement are
significant success factors. The European
confectionery market is characterised by
relatively strong consumer loyalty to local
brands. This ties into drivers like nostalgia
and trust as well as security and national
pride. Shoppers however rarely buy only
one brand but rather tend to have a few
brands in their purchasing repertoire. The
main considerations when buying are brand
liking, flavour, quality, and curiosity about
new products.
Consumption patterns and taste
preferences vary between the different
markets. For example, compared to
the rest of Europe, the Nordic region
has a higher per capita consumption of
chocolate and candy.
Competitive market
The global market for confectionery is
dominated by international companies
like Mars, Mondelez International, Nestlé,
Ferrero, Perfetti Van Melle, Haribo and Lindt
& Sprüngli. However, in the local markets
these companies meet tough opposition
from players with locally established brands
such as Cloetta, Fazer, Orkla and Toms.
No player has a strong position across all
European markets. Consolidation of the
confectionery industry is taking place grad-
ually. For example, in 2023 Mondelez Inter-
national completed the sale of its chewing
gum business to Perfetti Van Melle.
Pick & mix
The Pick & mix segment has a very
strong position in the Nordic countries
and accounts for a large share of the total
confectionery consumption, while the
consumption of pick & mix is considerably
lower in Central Europe where packaged
candy and chocolate have a stronger
position. In Sweden, pick & mix normally
accounts for 30 per cent of the total
confectionery market, while in the other
Nordic countries it accounts for 5 to 15
per cent. After volume decline during
the Covid-19 pandemic, pick & mix has
recovered well with strong growth in the
years 2022, 2023 and 2024.
The nut market
In 2024, Cloetta divested the Nutisal brand
and is now only active in the nut market via
the brand Parrots in the Pick & mix business
segment. In recent years the category has
been declining in volume but growing in
value due to price increases and a shift to
the premium product category.
The confectionery market
%
69%
Chocolate
26%
Candy incl.
pastilles
5%
Chewing gum
Breakdown of raw materials
and packaging costs
%
20%
Sugar
19%
Chocolate
18%
Pack
9%
Syrups
5%
Starches
5%
Milk Products
4%
Gelatin
4%
Polyols
4%
Fats & Waxes
4%
Flavours
8%
Other
69%
5%
Index of key commodities
used by Cloetta
Index
90
100
110
120
130
140
150
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
Apr
Mar
Feb
Jan
80
100
120
140
160
180
202420232022
Source: Mintec, EUWID, Kingsman.
26%
20%
18%
9%
5%
5%
4%
4%
4%
4%
8%
19%
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Cloetta’s sales channels
Grocery retail trade
One of Cloetta’s most important sales
channels, typically covered by central
agreements at a national level.
Development The grocery retail trade has undergone extensive consolidation
and restructuring over the past ten years, with increasingly fewer and larger stores.
Concentration in the grocery trade is high in the majority of European markets, which
means that the channel can place high demands on its suppliers.
Service trade
One of Cloetta’s most important sales
channels, characterised by generous
opening hours, centrally located in the
form of convenience stores and filling
stations.
Development Over the past decade, confectionery sales to the service trade have
decreased, primarily due to the presence of fewer filling stations, but also because
the service trade has developed its own snack alternatives that compete with confec-
tionery. Service trade faced a big hit due to the pandemic and the related restrictions
and decrease in people mobility. It has gradually been moving back to normal levels
since 2022 but has not yet fully reached pre-Covid sales.
E-commerce
Cloetta’s fastest growing sales channel,
with a mix of both established and new
players. Younger target groups with
convenience as main driver.
Development Over the last decade, FMCG e-commerce in Europe has experienced
strong growth further fueled by the Covid-19 pandemic. Key accelerators are tech-
nology-based improvements solutions such as mobile shopping, improved online
shopper experience and automated supply chain systems giving faster and more
accurate deliveries and quick payment methods. In recent years, fast delivery retail-
ers have established a new way of shopping, quick commerce, with home delivery
of groceries in less than 30 minutes. Further, new services focused on convenience,
such as meal kit subscriptions have attracted consumers who seek to simplify their
everyday life.
Other channels
Includes cinemas, building supply
stores, airports, and arenas. This
channel often requires support in
developing its confectionery sales.
Development In recent years, this channel has broadened to
also include non-traditional confectionery sales channels such as building supply
stores, furniture and appliance stores, hotels, and bars.
Raw material and packaging
Cloetta’s largest cost items in production
are raw materials and packaging. We
collaborate closely with our largest raw
material suppliers, for example through
automated order and delivery processes
that are adapted to the raw material
consumption in each factory.
The prices of Cloetta’s most important
raw materials are set on the European com-
modities exchange, either directly, as is the
case for cocoa, or indirectly such as with glu-
cose syrup, the price of which is influenced
by the price of wheat and barley. This means
that our purchasing costs for these items are
dependent on market pricing. Cloetta has a
central procurement function that develops
and implements sourcing strategies to man-
age risk and drive competitive advantage.
As a rule, the central purchasing depart-
ment contracts the most important raw
materials so that raw materials are available
for the equivalent of six to nine months of
production. This also creates predictability
in prices and financial outcomes since price
changes affect our purchasing costs with
a certain delay. In this way, we usually avoid
temporary price swings in the commodities
market. Furthermore, in a high inflationary
environment, Cloetta’s strategy is to protect
its profitability by compensating for all
input costs in absolute terms, also includ-
ing packaging, freight, and energy costs,
through price increases towards its cus-
tomers as well as cost savings and reduced
overall energy consumption.
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Responsibility for
the environment
and human rights
One of the key trends is the interest
in the impact of food production on
the environment and the social condi-
tions of the producer. Suppliers have
responded to consumer demand for
information; above all in terms of the
origins of raw materials, the farmers’
working conditions, quality, and farming
methods, by introducing different types
of labelling and certifications.
Cloetta’s response
During 2024, Cloetta continued driving
several programmes within these areas
that aim to make a real impact in the
world. In partnership with the Rain forest
Alliance, we contribute to The Living
Income Fund that bridges the living
income gap by making extra payments
directly to cocoa farmers. Science
Based Targets initiative (SBTi) approved
Cloetta’s targets to reduce direct and
indirect carbon emissions by 46 per cent
by 2030 compared to the base year of
2019. As an example of our commitment,
we continue to calculate the climate
footprint for a selection of our products,
involving continued data collection and
engagement with our suppliers.
Greater
individualisation
Consumers increasingly wish to satisfy
their individual needs. This means that
they want the option of both choosing
products, and also having access to
products and services that are individ-
ualised and can be adapted to different
occasions.
Cloetta’s response
Pick & mix is a good example of a con-
cept that is individualised, and a cate-
gory in which we are a leading market
player. The CandyKing-concept
relaunch has made it a more relevant
and appealing offering and has given
consumers exciting new options on
the pick & mix shelf, through exclusive
collaboration with suppliers. Cloetta
also consistently works on different
packaging sizes and formats to cater for
different occasion needs, such as The
Jelly Bean Factory providing a range of
different formats, spanning from smaller
“grab and go”– sachets, to larger sharing
& gift jars.
Consumer trends
and behaviors
Cloetta continuously monitors market trends at macro and micro levels
through market research, category and trend reports, social listening, and
various trackers. Keeping track of trends provides valuable information
for us to feed into the development of new ideas and concepts.
Health
Consumers are increasingly looking
for natural raw materials with positive
health benefits. Additives of various
types and artificially produced sub-
stances are being questioned in favour
of natural ingredients. E-numbers are
being replaced with the name of the
additive in plain language. Natural sugar
and natural sweeteners like xylitol and
stevia are preferred to artificial sweet-
eners. Less sugar and fewer calories
are another important aspect that
consumers are demanding.
Cloetta’s response
We are working to remove artificial
flavourings and colourants from our
assortment. They will be entirely
replaced by natural fruit and plant
extracts in our candy products. Cloetta
provides alternatives in the form of
sugar -free products, products with less
sugar and products that are naturally
free from sugar, giving consumers the
opportunity to choose. We also use the
natural sweetener xylitol in brands such
as Jenkki, Mynthon and Läkerol Dents.
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Local, genuine
and transparent
brands
Superior sensory
experiences
E-commerce and
digital channels
increasingly
important
Local brands with a strong history are
favoured by consumers. This became
even more apparent during the pan-
demic, when consumers reverted far
more to traditional and familiar brands.
Authenticity and transparency are key
for brands to deliver in order to earn
consumer trust.
Cloetta’s response
In all core markets, we have some of
the strongest local brands that con-
sistently deliver joy and fun moments in
consumers’ daily lives. We continue to
invest in local brands and develop them
in accordance with consumer trends
whilst ensuring they meet consumer
expectations. To earn consumer trust
and to truly deliver genuine brands, we
work continuously to ensure all products
meet high quality standards and provide
clear and transparent information about
the contents of the products on the
packaging and our website.
With the increased exposure to social
media platforms where consumers
share consumption experiences, and
the need for affordable escapism, con-
sumers are seeking heightened sen-
sory experiences from their food. This
is driving companies to regularly launch
exciting new flavours and textures.
Cloetta’s response
With our strong brands acting as a trust-
worthy ambassador for novel taste
sensations, 2024 brought exciting taste
experiences to consumers. A recent
example is Finland’s most popular
chocolate bar Tupla expanding into a
Tupla Crispy Puffs bag that contains
crispy and crunchy wheat puffs with the
same cocoa nougat found in the original
Tupla bars. In 2024, Cloetta expanded
the offering with the mint flavoured
Crispy Puffs. In the third quarter of 2024,
Cloetta launched Tupla ice-cream in a
licensing partnership with an ice-cream
company.
E-commerce is in general growing
across all sectors, including the grocery
retail trade, and growth was fueled fur-
ther by the Covid-19 pandemic. Despite
turbulent times in the last few years,
grocery e-commerce is mid-term
expected to grow to a significant size
in several key markets. Online sales in
confectionery are still lower than for
other consumer product categories,
but have more than doubled in Cloetta’s
core markets compared to before the
pandemic.
Cloetta’s response
E-commerce is one of our key focus
areas. Cloetta’s e-commerce strategy
is focused on growth through a
dynamic channel that matches our
strong offline shares in online trade.
Online grocery market maturity differs
depending on the markets. This means
that Cloetta sets clear priorities for
where and how to drive e-commerce
including online content, e-trade mar-
keting activation and dedicated online
product development. We are con-
stantly developing new marketing tools
to get noticed and end up being the
preferred brand in a shopping cart.
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Know our consumer –
bring moments of Joy
At Cloetta, consumer centricity is our long-term commitment and passion to
identify and satisfy consumer needs. Consumer and market insights are a key
source of input for our product development, marketing, and branding strategies.
It is important to understand all parts of the consumer journey to provide brands
and products that are liked, purchased, and consumed. Our efforts are mobilised
around the following three key areas.
The consumer in focus
Cloetta continuously monitors market trends
to gain valuable information to feed into the
development of new ideas and concepts,
see pages 14–15. Cloetta develops different
hypotheses, concepts and prototypes to
test those and ensure our offerings resonate
well with consumers expectation.
By evaluating the physical products,
consumers provide essential feedback to
our innovation team which subsequently
improves the product recipes to fully meet
consumers’ preferences before launch. We
manage and make use of our own consumer
panel to efficiently conduct product tests,
establishing a direct line with consumers,
which supports the improvement of our
current products as well as the development
of new ones.
We closely follow the health of our brands
regarding consumer perception through
advanced tracking tools based on specific
KPIs to systematically follow the effect of
our marketing activities and new launches.
The high frequency of data points ensures
a thorough understanding of the brand per-
formance and enables quick and effective
actions when needed.
Strategic product development
Product development is one of the key ena-
blers to win new consumers and drive brand
health while differentiating in the market.
On an ongoing basis we introduce product
extensions such as launches of new flavours,
textures and packaging as well as adaptions
to local needs.
A product that is successful in one
market can be launched in another market
under an existing brand, provided consumer
approval.
To ensure valorisation and competitive
edge, we focus on fewer but bigger innova-
tions every year to provide truly new taste
and ingredient experiences based on key
consumer insights. It enables us to enter
new market segments, grow categories, be
margin- accretive and launch these inno-
vations cross markets to ensure synergies
of scale.
Brand and category leadership
The continuous development and care of
its unique brands are of vital importance
for Cloetta. Strong brands and top-quality
products provide the anchor and orienta-
tion in times of uncertainty and volatility.
In an impulse driven category with high
percentage of shoppers buying the cate-
gory only a few times per year, our strategy
is strongly influenced by the focus to con-
stantly recruit new consumers and grow the
consumer base of our brands. Doing so, we
drive marketing return on investment with
increased emphasis on the largest brands
of the brand portfolio to grow them even
bigger. Cloetta’s ten largest brands account
for more than half of the Group’s sales. For
each brand there is an individual develop-
ment plan aimed at continuously developing
and strengthening the brand.
Another overarching ambition is to
ensure that the marketing investments we
make are effective in driving incremental
sales and brand equity for the long-term.
This involves creating the right impactful
content combined with a suitable media
channel mix, which must be carefully devel-
oped and planned for each campaign, based
on the defined performance objectives.
Cloetta typically combines marketing
activities with in-store campaigns. New
products are normally given sales support
through campaigns, events, in-store activi-
ties, and advertisements to reach consum-
ers as quickly as possible.
Over the last years, efficiency gains
have enabled us to increase the share of
marketing that is visible to the consumers,
reaching close to 70 per cent, helping us to
invest competitively.
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Consumer and market insights
are a key source of input for our
product development, marketing,
and branding strategies
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Accelerate brand strength
and grow consumer base
Cloetta is executing a number of strategies to accelerate brand strength and grow
the consumer base. The following two areas describe examples of how we address
this objective and successfully advance in consumer penetration and brand growth.
Successful launch of
Chewits jewels in the UK
With an iconic position in chewy candy, Chewits entered the gummy
candy segment in the UK with a product innovation that meets the
HFSS* standards. The successful launch of Chewits Jewels in the UK
won silver in The Grocer’s New Product and Packaging Awards 2024
and the social media campaign in connection with the launch in the UK
reached 18.8 million impressions through organic spread, boosts and
paid ads.
Expand strong brands into
new consumer segments and markets
In a blind test trial, 82% of UK consumers
couldn’t tell that the product contains less
sugar than customary confectionery**
* High in fat, salt and sugar
** WSS Product Testing Report done pre-launch in February 2023
Successful launch of
Mynthon Zip Mint in Norway
A significant milestone in Cloetta’s ability to stretch its leading brands into new
consumer segments was achieved in 2024, when Mynthon Zip Mint was very
successfully launched in Norway. Mynthon is the leading pastille brand in Finland,
where it was launched in 1976. The Zip Mint launch in Norway swiftly surpassed the
set market-share target.
The launch is a significant step towards growing the refreshment category and
reaching new consumers through new need states.
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Reaching new consumers through
strong product innovation
Sportlife Fruity Flavor
jars offer exciting, sweet
flavor combinations
In the Netherlands, Sportlife continued to attract younger
consumers to the gum category and the Sportlife brand
through the launch of the Sportlife Fruity Flavor jars and
enabled growth in the gum jars segment.
Red Band Juicy Bites
In the Netherlands, Red Band Juicy Bites won food media
Distrifood’s Wheel of Retail Award for the best product
innovation in 2024 within sugar confectionary. The launch
was a significant step for the brand to reach new
consumer segments.
The launch of Strawberry
takes Läkerol into new
consumer segment
The extensive and very successful Nordic launch of Läkerol
Strawberry supported the Läkerol brand in addressing a new
consumer segment through product innovation. The pastille is
sugar-free, vegan and contains only natural colors and flavors.
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Our sustainability
agenda
Our overall goal for the sustainability work is to create the conditions for
long-term value creation. We are a fast-moving consumer goods company
with a global value chain. The initiatives within the sustainability agenda
hence cover topics across the value chain where we have the ability and
the responsibility to create a positive impact.
This means growing as a company, man-
aging risks and identifying opportunities
while respecting and managing the impact
on people and the environment and ful-
filling the expectations of those around
Cloetta.
Our sustainability agenda, A Sweeter
Future, focuses on creating joy and
long-lasting value For you, For people and
For the planet. As a signatory participant
of the UN Global Compact since 2009,
we support the Sustainable Development
Goals (SDGs), both directly and indirectly
through our work in our three pillars.
In 2020, we joined the Science
Based Targets initiative (SBTi) and set
science- based targets aligned with SBTi
guidelines, using 2019 as the baseline year.
Climate Action
Program
Less and Better
Packaging
Choice for You &
Innovations
Diversity, Equity
and Inclusion
Health &
Safety
Sustainable Sourcing
A
Sweeter
Future
F
o
r
t
h
e
P
l
a
n
e
t
F
o
r
P
e
o
p
l
e
F
o
r
Y
o
u
Marketing &
Sustainability
Communication
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For you
Our consumers are at the center of our business, which is why we work
towards meeting their diverse needs, but also ensuring safe, high quality,
transparently labelled and trusted products. Through continuous innovation
we aim to offer products that align with evolving consumer preferences,
including healthier options and environmentally responsible choices.
Our consumers are at
the center of our busi-
ness, which is why we
work towards meeting
their diverse needs, but
also ensuring safe, high
quality, transparently
labelled and trusted
products
SDG commitment
Responsible Consumption and Pro-
duction is central to our efforts in the
For you-pillar. We take responsibility
for product quality and food safety,
we source sustainable ingredients
and we provide options that consider
consumers’ health.
Our targets are to:
• Offer sugar-free, less sugar and
options with functional ingredients
• Offer more vegan options
• Support dental health with our
xylitol products
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For people
Taking care of the people involved in our products extends beyond the walls
of our plants and offices. Engaging in partnerships and collaborating with
organisations allows us to support farmers and improve living conditions
throughout our supply chain.
Taking care of the
people involved in
our products extends
beyond the walls of our
plants and offices
SDG commitment
In the For people-pillar we contribute
directly to SDGs 5, 8, 12 & 17. Gender
equality (5) and decent work and economic
growth (8) are important in our own opera-
tions as well as in our supply chain. Through
our partnerships we are able to strengthen
these impacts (17). Responsible consump-
tion & production (12) is at the core of our
responsible marketing practices and our
societal impact.
Our targets are to:
• Continue to work towards zero
work-related accidents
• Cloetta engagement survey to be
in line with the global benchmark
by 2025
• Maintain existing partnerships
and initiate a new collaboration
to improve living conditions in our
supply chain by 2025
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For the planet
A healthy planet is the source of all our ingredients. Climate action, sustainable
sourcing, and less and better packaging are our three main priorities in improving
our footprint. Within these, we work towards improving the environmental
performance of our suppliers, assessing topics like biodiversity, energy usage,
waste, and emissions in our own operations but also in our supply chain.
* compared to 2019 base year emissions
We make sure to use
resources efficiently,
lower our climate
impact and work
towards our science-
based targets
SDG commitment
In the For planet-pillar, the SDGs
focused on Responsible Consumption
and Production (12), Climate Action (13),
and Life on Land (15) are of the greatest
importance to us. Our products are
dependent on raw materials across the
world, and the consumption and produc-
tion of our products also create a greater
responsibility on our climate footprint.
Our targets are to:
• Reduce absolute greenhouse
gas emissions with 46 per cent by
2030*
• Use 100 per cent recyclable
packaging by 2025
• Use 100 per cent packaging from
renewable sources or recycled
materials by 2030
• With palm oil-based vegetable oils
continue to source 100 per cent
RSPO certified segregated palm oil
• Maintain 100 per cent Rainforest
Alliance certified cocoa
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Cloetta’s main markets
Cloetta’s main markets are the countries in which we have our own sales
and distribution organisation, and include Sweden, Finland, the Netherlands,
Denmark, Germany, Norway and the UK*.
30%
20%
6%
11%
7%
14%
5%
7%
Sweden
Finland
Norway
Denmark
Germany
The Netherlands
The UK
International
markets
* The underlying market categorisation of
the market consumption data calculations
was updated compared to previous years
in the Annual report 2023 and this affects the
comparability of information stated in previous
Annual and Sustainability Reports.
Market position per category
Market Candy Pastilles Chocolate Chewing gum Pick & mix
Sweden 1 1 2 - 1
Finland** 2 1 4 1 1
Norway 2 3 5 - 1
Denmark 2 1 - - 1
The Netherlands 1 5 - 2 -
Germany** 6 - - - -
The UK** * - - - 1
* Presence on the market without confirmed market position.
** Estimated market position based on data from specific customers.
Source: Kesko, SOK, Circana and Nielsen.
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Top-selling brands Categories
Confectionery market excl. pick & mix
Largest players*
Confectionery market excl. pick & mix
Top-selling brands Categories
Confectionery market excl. pick & mix
Largest players
Confectionery market excl. pick & mix
Share of sales
4.8%
Total market
CAGR 2019–2024
35%
Candy and pastilles
58%
Chocolate
7%
Chewing gum
21%
Cloetta
28%
Mondelez
9%
Fazer
42%
Others
Sweden
Sweden is the largest single market in the Nordic region, with
a population of around 10.5 million people and almost one third
of the total confectionery consumption. In 2024, the Swedish
market recorded consumer sales of around SEK 18bn, an
increase compared to the prior year.
Sales channels
Cloetta’s largest customers include Axfood, Coop, ICA and Rusta.
The Swedish grocery retail trade is concentrated and increasingly
centrally controlled, but with good opportunities for influence at
the local store level. The task for Cloetta’s sales force is to ensure
distribution as well as placement and space in the stores in accord-
ance with the central agreements, and also to provide the trade with
support in implementing campaigns and launches. The pick & mix
concepts are handled by a dedicated merchandising organisation.
The service trade is a vital sales channel. In recent years, alternative
sales channels such as building supply stores, cinemas and arenas
have become increasingly important.
Organisation
In Sweden, there are a total of around 240 employees in the sales
and merchandising organisation and the office in Malmö.
Finland
Finland is the third largest market in the Nordic region, with a
population of around 5.6 million people and one fourth of the
total confectionery consumption. In 2024, the Finnish market
recorded consumer sales of around SEK 14bn, an increase
compared to the prior year.
Sales channels
The Finnish grocery retail trade is dominated by two players, Kesko
and S-Group. Lidl also has a large share of retail trade with 10 per
cent. Finland has the most centralised purchasing of all the Nordic
region markets which enables new products to achieve wide distri-
bution and quickly become available to consumers. Cloetta’s largest
customers include S-Group, Kesko and Tokmanni. Cloetta is the
market leader in pick & mix which represents about 9 per cent of the
total market value.
Organisation
In Finland, there are around 200 employees in the sales and mer-
chandising organisation and at the office in Turku. Cloetta Suomi Oy
employs around 125 people in field sales, visiting stores every day.
Source: Global data.
Source: Kesko and SOK.
Share of sales
4.0%
Total market
CAGR 2019–2024
38%
Candy and pastilles
54%
Chocolate
8%
Chewing gum
20%
Cloetta
39%
Fazer
6%
Orkla
5%
Mondelez
30%
Others
30%
20%
Source: Nielsen.Source: Global data.
#2
#2
21%
20%
7%
28%
39%
35%
9%
5%
6%
42%
30%
38%
54%
8%
58%
* During 2024, Cloetta divested the Nutisal brand and the Nuts category is hence excluded from the overview.
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Top-selling brands Categories
Confectionery market excl. pick & mix
Largest players
Confectionery market excl. pick & mix
Top-selling brands Categories
Confectionery market excl. pick & mix
Largest players
Confectionery market excl. pick & mix
Share of sales
4.1%
Total market
CAGR 2019–2024
40%
Candy and pastilles
54%
Chocolate
6%
Chewing gum
16%
Cloetta
19%
Perfetti
8%
Haribo
57%
Others
The Netherlands
The Netherlands is the sixth largest confectionery market
in Western Europe, with a population of around 18.2 million
people. In 2024, the Dutch market recorded consumer sales of
around SEK 26bn, an increase compared to the prior year.
Sales channels
The grocery retail trade is concentrated around a few major players.
Primarily centralised purchasing allows for wide and rapid distribu-
tion of new products that are launched. Other important channels
include the hard discount and non-food retail chains, pharmacies
and out-of-home. Also, online grocery shopping has a strong posi-
tion in the Netherlands in which Cloetta is present. Cloetta’s largest
customers include Albert Heijn, Jumbo Supermarkten, Plus Retail,
AS Watson and Lekkerland.
Organisation
Cloetta has around 85 employees in the commercial organisation
at the office in Breda mainly focusing on the Dutch market. The
Breda office also supports the Cloetta International Markets divi-
sion through back-office and support activities including demand,
customer service, marketing, business controlling and finance &
accounting.
Denmark
Denmark is the second largest market in the Nordic region with
a population of around 5.9 million people and almost one third
of the total confectionery consumption. In 2024, the Danish
market recorded consumer sales of around SEK 20 bn, an
increase compared to prior year.
Sales channels
The grocery trade in Denmark is moving towards increasing cen-
tralisation, albeit with a combination of centrally driven chains and
a more decentralised approach than in the other Nordic countries.
Extensive efforts are therefore required at an individual store level
to achieve distribution and sales of in-store display racks. The
Discount channel is growing and new channels such as non-food
outlets and DIY stores are growing in importance. Cloetta’s largest
customers include Coop, Salling Group and Reitan.
Organisation
In Denmark, there are around 130 employees at the offices
in Brøndby and Randers and in the sales and merchandising
organisation.
Source: Global data.
Source: Nielsen.
Share of sales
4.8%
Total market
CAGR 2019–2024
35%
Candy and pastilles
57%
Chocolate
8%
Chewing gum
13%
Cloetta
24%
Haribo
12%
Tom s
51%
Others
14%
11%
Source: IRI.Source: Global data.
#2
#2
40%
16%
13%
19%
24%
8%
12%
57%
51%
35%
57%
8%
6%
54%
26 Cloetta Annual and Sustainability Report 2024
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strategy
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consumer
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markets
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shareholders
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performance
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Top-selling brands
Top-selling brands
Top-selling brands
Share of sales
2.4%
Total market
CAGR 2019–2024
Share of sales
5.9%
Total market
CAGR 2019–2024
Norway
Norway is the smallest market in the Nordic region, with
a population of around 5.5 million people and almost one
fourth of the total confectionery consumption. In 2024,
the Norwegian market recorded consumer sales of around
SEK 15 bn, an increase compared to prior year.
Sales channels
Cloetta’s largest customers include Coop, NorgesGruppen and
Rema 1000.
Organisation
In Norway, Cloetta has around 30 employees at the office in
Lysaker just outside of Oslo and in the sales and merchandising
organisation.
United Kingdom
The UK is the second largest market in Western Europe, with
a population of around 68.3 million people. In 2024, the UK
market recorded consumer sales of around SEK 145 bn, an
increase compared to prior year.
Sales channels
The market is characterised by fierce competition from all inter-
national confectionery companies. Cloetta’s largest customers
include Poundland and Tesco.
Organisation
Both the Branded packaged products business and the Pick &
mix business are commercially managed from Cloetta’s office
in Fareham. Cloetta has a sales and merchandising team of
approximately 130 people.
6%
5%
Share of sales
5.3%
Total market
CAGR 2019–2024
Germany
Germany is the largest market in Western Europe, with a
population of around 84.5 million people. In 2024, the German
market recorded consumer sales of around SEK 148 bn, an
increase compared to prior year.
Sales channels
The market is characterised by its large proportion of discount-
ers and fierce competition. Cloetta’s largest customers include
Edeka, Lidl & Schwarz, Metro and Rewe.
Organisation
Cloetta has its own sales organisation in Bocholt, Germany with
12 employees. The office takes care of marketing, customers and
the brands, and also has direct contact with all major customer
groups, which are supplied directly out of the German central
warehouse. To ensure full country service coverage, Cloetta
Germany works with sales agents in seven regions and more than
80 sales representatives.
7%
27Cloetta Annual and Sustainability Report 2024
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Top-selling brands
Share of sales
International Markets
International Markets consists primarily of sales to countries
where Cloetta does not have its own sales and marketing
organisations, a total of more than 60 markets. In these mar-
kets Cloetta is active in three categories: Candy, chocolate
and pastilles, with focus on five strategic Cloetta brands;
Red Band, The Jelly Bean Factory, Chewits, Kexchoklad
and Läkerol.
Sales channels
Cloetta’s largest distributors include Regal Confections ( Canada),
Conaxess Trade (Switzerland and Austria), AS Konig (Latvia),
Tridens (Estonia) and Al Wefag (Saudi Arabia).
Organisation
All markets within International Markets are serviced by external
distributors managed out of regional hubs, which Cloetta has in
Latvia, Switzerland and United Arab Emirates. All other distribu-
tors in Europe, America and Asia are managed by local Cloetta
staff from the Breda office in the Netherlands.
7%
Taxes paid per country
SEK m
-200
0
200
400
600
800
IcelandBelgiumSlovakia3The UKNorwayGermanyDenmark2The NetherlandsFinlandSweden
Taxes paid
42%
Value-added tax
25%
Employment- related
taxes
24%
Confectionery tax
6%
Corporate income tax
1%
Packaging tax
2%
Other taxes
Our intention is to pay taxes in accordance with international and
local legislation in the countries where Cloetta is operational.
Total
SEK 1,776m
Shareholder
4%
Suppliers of raw materials
and consumables
46%
25%
Employees
Other suppliers
23%
1%
Creditors, financial partners
Corporate
income tax
1%
Distributed value SEK 8,077m¹
Manufacturing and sales of Cloetta’s products generate economic value that benefits its stakeholders.
Other information
1) Net sales of SEK 8,613m excluding profit for the year, amortisation, depreciation and impairments and including paid dividends. Total retained economic value of SEK 536m.
2) Tax paid in Denmark is proportionally higher due to sugar taxes.
3) Net tax receivable position due to the value-added tax receipts.
Sweden
Finland
The Netherlands
Denmark²
Norway
Germany
The UK
Slovakia³
Belgium
Ireland
42%
25%
24%
6%
2%
1%
28 Cloetta Annual and Sustainability Report 2024
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Share and shareholders
The main objective of Cloetta’s Investor Relations is to produce accurate, sufficient
and timely information regarding the development of Cloetta’s business operations,
strategy, markets and financial position to ensure that the capital markets have
relevant information in order to determine the fair value of the company.
Investor relations
Cloetta regularly meets with investors and
analysts and arranges both virtual and
physical roadshows. Cloetta also maintains
regular contact with equity research ana-
lysts and participates in investor confer-
ences. The IR team, that includes the CEO,
CFO and the Director, Communications &
IR, also participates in events especially
targeted for private investors.
In 2024, Cloetta also introduced new
ways of working to further develop the
company’s dialogue with the capital market;
• Quarterly pre-silent period calls were
organised by the CFO and the Director,
Communications & IR. The purpose of
these calls is to provide an opportunity for
equity analysts to ask questions and to
provide further access to management.
• Plant visits are arranged to further demon-
strate the operations of Cloetta.
Listing and share trading
Cloetta’s class B shares have been listed
on Nasdaq Stockholm since 16 February
2009 and have been traded on the Mid Cap
list since 2 July 2012. Cloetta’s shares are
part of the OMX Stockholm Mid Cap index,
and also the Nordic and Swedish industry
sector index for Food Producers and Food
& Beverage.
Shareholders¹
On 31 December 2024, Cloetta AB (publ)
had 40,831 (43,164) shareholders, a
decrease of 5.4 per cent (increase of 8 per
cent) since the previous year-end.
Of the shareholders, 1,379 were finan-
cial and institutional investors and 39,452
were private investors. Financial and insti-
tutional investors held 81.3 per cent of the
votes and 78.0 per cent of the share capital.
There were 1,583 foreign shareholders who
held 33.0 per cent of the votes and 38.7
per cent of the share capital. The 15 largest
shareholders accounted for 67.9 per cent
of the votes and 62.1 per cent of the share
capital. On 31 December 2024, AB Malfors
Promotor was Cloetta’s largest shareholder
with a holding representing 42.9 per cent
of the votes and 32.7 per cent of the share
capital in the company. The second largest
shareholder was Van Lanschot Kempen
Investment Management with 4.2 per cent
of the votes and 4.9 per cent of the share
capital, and the third largest shareholder
was LSV Asset Management with 3.2 per
cent of the votes and 3.7 per cent of the
share capital.
Share price and trading²
Between 1 January and 31 December 2024,
172,962,836 Cloetta shares were traded
on Nasdaq Stockholm for a total value of
SEK3,066m, equal to around 61 per cent
of the total number of class B shares at
the end of the period. Trading on Nasdaq
Stockholm accounted for 47.9 per cent, and
other markets where the Cloetta share was
traded include Cboe Global Markets at 40.9
per cent, LSE Group at 6.7 per cent and
Aquis at 2.3 per cent.
The highest quoted bid price during
the period from 1 January to 31 December
2024 was SEK 27.56 on 28 October,
and the lowest bid price was SEK 15.92
on 23 April 2024. The share price on
31 December 2024 was SEK 25.20 (last
1) Source: Euroclear and Monitor. 2) Source: Nasdaq Stockholm.
Share price performance
2014–2024
No. of shares traded, thousands Closing price, SEK
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
OMX Stockholm_PI
Cloetta B
No. of shares traded, thousands per month
0
5000
10000
15000
20000
25000
30000
35000
20242023202220212020201920182017201620152014
0
10
20
30
40
50
60
70
70
60
50
40
30
20
10
0
Cloetta B OMX Stockholm_PI No. of shares traded, thousands per month
Source: Mintec, EUWID, Kingsman.
29Cloetta Annual and Sustainability Report 2024
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price paid). During the period from 1 Janu-
ary to 31 December 2024, Cloetta’s share
price increased by 37.0 per cent, while
Nasdaq OMX Stockholm PI increased by
5.7 per cent.
Share capital and capital structure
Cloetta’s share capital at 31 December
2024 amounted to SEK 1,443,096,495.
The total number of shares is 288,619,299,
divided between 5,735,249 class A shares
and 282,884,050 class B shares, equal to a
quota value per share of SEK 5.
According to the Articles of Association,
the share capital shall amount to not less
than SEK 400,000,000 and not more than
SEK 1,600,000,000, divided between no
less than 80,000,000 shares and no more
than 320,000,000 shares. At 31 December
2024 Cloetta had 2,553,892 class B shares
in treasury.
Dividend and dividend policy
Cloetta’s long-term goal is a dividend pay-
out of 40–60 per cent of profit for the year.
The ambition is to continue to propose a
stable dividend. Neither the Swedish Com-
panies Act nor Cloetta’s Articles of Associ-
ation contain any restrictions regarding the
right to dividends for shareholders outside
Sweden. Aside from any limitations related
to banking or clearing activities in the
affected jurisdictions, payments to foreign
shareholders are carried out in the same
manner as to shareholders in Sweden.
A dividend of SEK 285m was trans-
ferred to the shareholders in 2024. For the
financial year 2024, the Board of Directors
of Cloetta AB proposes to distribute a divi-
dend to the shareholders of SEK 1.10 (1.00)
per share for the 2024 financial year cor-
responding to 66 per cent (65) of profit for
the year and corresponding to 57 per cent
of the profit for the year excluding impact
of the impairment and other items affecting
comparability relating to the divestment of
the Nutisal brand. As the impairment for the
divestment of the Nutisal brand is non-cash,
it has not affected our ability to issue share
dividends. The dividend is resolved on by
the Annual General Meeting (AGM) and dis-
bursement is handled by Euroclear Sweden
AB. The right to a dividend is granted to
those persons who are listed as share-
holders in the share register maintained by
Euroclear Sweden AB on the record date.
Articles of Association
Cloetta’s Articles of Association contain
a Central Securities Depository (CSD)
provision and its shares are affiliated with
Euroclear Sweden AB, which means that
Euroclear Sweden AB administers the
company’s share register and registers the
shares to owners. Each A share grants ten
votes and each B share one vote in share-
holders meetings. All shares grant equal
entitlement to the company’s profits and
an equal share in any surplus arising from
liquidation. Should the company issue new
shares of class A and class B through a
cash or set-off issue, holders of class A and
class B shares have the right to subscribe
for new shares of the same class in propor-
tion to the number of shares already held
on the record date. If the issue includes
shares of only class B, all holders of class
A and class B shares have the right to sub-
scribe for new class B shares in proportion
to the number of shares already held on the
record date. Corresponding rules of appor-
tionment are applied in the event of a bonus
issue or issue of convertibles and subscrip-
tion warrants. The transference of a class
A share to a person who is not previously a
holder of class A shares in the company is
subject to a preemption procedure, except
when the transfer is made through division
of joint property, inheritance, testament or
gift to the person who is the closest heir to
the bequeathed. After receiving a written
request from a holder of class A shares, the
company shall convert the class A shares
specified in the request to class B shares.
Individuals with an insider position
Persons discharging managerial respon-
sibilities for Cloetta as well as persons
or legal entities closely associated with
them are obliged to notify Cloetta and the
Swedish Financial Supervisory Authority
of every transaction conducted related
to changes in their holdings of Cloetta
shares once a total amount of EUR 20,000
has been reached within a calendar year,
according to the Market Abuse Regulation.
Listed companies are required to maintain
a logbook of individuals who are employed
or contracted by the company and have
access to insider information relating to the
company when insider information arises
within the company. These can include both
persons discharging managerial responsi-
bilities, and also other individuals who have
obtained inside information.
Silent periods
Cloetta observes a silent period starting at
least 25 calendar days prior to publication
of the year-end or interim report and includ-
ing the day of the report publication. The
period was previously 30 calendar days.
The silent period ends when the financial
report is published.
During this period, Cloetta represent-
atives refrain from providing estimates,
answering questions or commenting on
Cloetta’s financial development, financial
results, outlook or significant business
prospects that are material and/or are of
strategic importance.
If any incident that arises during a silent
period is subject to regulatory timely disclo-
sure, Cloetta will disclose the information
according to the disclosure regulations and
may comment on that particular matter.
Source: Monitor by Modular Finance AB. Compiled and processed data from various sources, including Euroclear,
Morningstar and the Swedish Financial Supervisory Authority (Finansinspektionen).
Marketplaces, %
1 January–31 December 2024
48%
Nasdaq OMX
41%
Cboe Global
Markets
7%
LSE Group
2%
Aquis
2%
Other
Trading categories, %
1 January–31 December 2024
45%
Lit
14%
Over the Counter
14%
Off-book
12%
Auction
8%
SI
7%
Dark
48%
41%
2%
2%
LIT, i.e. buy-and-sell orders are public. Traditional
exchange trading.
Off-book, stock trades that are executed away from the
exchange and are registered later.
Over the Counter, trading of securities executed outside
of formal exchanges and without the supervision of an
exchange regulator.
SI, Systematic Internalisers, outside regulated markets or
trading platforms.
Auction, auction trading process on an exchange.
Dark buyers and sellers trade shares anonymously, without
public transparency. Not registered on any public exchange.
7%
45 %
14 %
14 %
12 %
8 %
7 %
30 Cloetta Annual and Sustainability Report 2024
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15 largest shareholders at 31 December 2024
% of votes % of share capital Total no. of shares No. of A shares No. of B shares
Aktiebolaget Malfors Promotor 42.9 32.7 94,429,542 5,729,569 88,699,973
Van Lanschot Kempen Investment Management 4.2 4.9 14,213,777 - 14,213,777
LSV Asset Management 3.2 3.7 10,746,398 - 10,746,398
Nordea Funds 2.7 3.2 9,144,554 - 9,144,554
Vanguard 2.3 2.7 7,792,122 - 7,792,122
Dimensional Fund Advisors 2.2 2.6 7,511,686 - 7,511,686
Thompson, Siegel & Walmsley LLC 1.5 1.8 5,234,800 - 5,234,800
Avanza Pension 1.5 1.8 5,117,364 - 5,117,364
Ulla Håkanson 1.5 1.7 5,000,000 - 5,000,000
Olof Svenfelt 1.2 1.4 4,170,030 30 4,170,000
Fidelity Group Trust for Employee Benefit Plans 1.2 1.4 3,915,510 - 3,915,510
La Financière de l'Echiquier 1.1 1.3 3,731,476 - 3,731,476
BlackRock 1.0 1.2 3,415,863 - 3,415,863
Arrowstreet Capital 0.8 1.0 2,890,173 - 2,890,173
Unionen 0.6 0.7 2,053,064 - 2,053,064
Total, 15 largest shareholders 67.9 62.1 179,366,359 5,729,599 173,636,760
Treasury shares 0.8 0.9 2,553,892 - 2,553,892
Other shareholders 31.3 37.0 106,699,048 5,650 106,693,398
Total 100.0 100.0 288,619,299 5,735,249 282,884,050
Source: Source: Monitor by Modular Finance AB. Compiled and processed data from various sources,
including Euroclear, Morningstar and the Swedish Financial Supervisory Authority (Finansinspektionen).
Size categories at 31 December 2024
Total no. of shares No. of known owners Share of known owners, % Capital, % Votes, %
1 - 500 3,652,800 29,753 72.8 1.3 1.1
501 - 1,000 3,611,125 4,483 11.0 1.3 1.1
1,001 - 5,000 11,918,341 5,136 12.6 4.1 3.5
5,001 - 10,000 5,356,946 715 1.8 1.9 1.6
10,001 - 15,000 2,574,246 208 0.5 0.9 0.8
15,001 - 20,000 2,193,406 120 0.3 0.8 0.6
20,001 - 244,651,803 416 1.0 84.6 87.0
Unknown holding size 14,660,632 - - 5.1 4.3
Total 288,619,299 40,831 100.0 100.0 100.0
Source: Monitor by Modular Finance AB. Compiled and processed data from various sources, including Euroclear,
Morningstar and the Swedish Financial Supervisory Authority (Finansinspektionen).
Shareholders by country at 31 December 2024
Country
No. of
shareholders
% of
votes % of share capital No. of A shares No. of B shares
Sweden 39,248 67.0 61.3 5,735,249 170,867,177
United States 55 16.1 18.9 - 54,693,335
Netherlands 23 4.3 5.1 - 14,754,234
Finland 484 3.3 3.8 - 11,085,431
France 14 1.3 1.5 - 4,278,545
Other 1,001 3.7 4.3 - 12,496,164
Unknown country 6 4.3 5.1 - 14,709,164
Total 40,831 100.0 100.0 5,735,249 282,884,050
Source: Monitor by Modular Finance AB. Compiled and processed from various sources, including Euroclear, Morningstar and the Swedish Financial Supervisory Authority.
Shareholder categories at 31 December 2024
No. of share holders % of shareholders % of votes % of share capital
Private investors 39,452 96.6 18.7 22.0
Of which, Swedish residents 38,805 95.0 18.0 21.1
Legal entities 1,379 3.4 81.3 78.0
Of which, Swedish residents 443 1.1 49.1 40.1
Total 40,831 100.0 100.0 100.0
Of which, Swedish residents 39,248 96.1 67.1 61.2
Source: Monitor by Modular Finance AB. Compiled and processed from various sources, including Euroclear, Morningstar and the Swedish Financial Supervisory Authority.
31Cloetta Annual and Sustainability Report 2024
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Development of the share
Year Event
Increase in
share capital
Total share
capital
Increase in
no. of shares
Total no. of
shares
1998 Opening share capital, par value of the share is SEK 100 - 100,000 - 1,000
2008 Non-cash issue in connection with de-merger of Cloetta Fazer 99,900,000 100,000,000 999,000 1,000,000
2008 Share split, quota value of the share changed from SEK 100 to SEK 4 - 100,000,000 23,119,196 24,119,196
2008 Bonus issue, quota value of the share changed from SEK 4 to SEK 5 20,595,980 120,595,980 - 24,119,196
2011–2012 Conversion of convertible debenture loan 2,836,395 123,432,375 567,279 24,686,475
2012 Issue in kind 825,934,620 949,366,995 165,186,924 189,873,399
2012 Rights issue 493,729,500 1,443,096,495 98,745,900 288,619,299
Source: Euroclear.
Incentive schemes
The table below represents the main characteristics of the share-based long-term incentive plans that have been approved by the AGM.
For more information about the incentive plans, see pages 53–55, and Note 23 on pages 139–142.
LTI 2024 LTI 2023 LTI 2022 LTI 2021 LTI 2020
AGM approval date April 2024 April 2023 April 2022 April 2021 April 2020
Maximum number of B shares to be allocated 2,391,629 1,923,844 1,622,932 1,590,629 1,206,374
as a percentage of total shares 0.8 0.7 0.6 0.6 0.4
as a percentage of voting rights 0.7 0.6 0.5 0.5 0.4
Number of employees offered the opportunity to participate 44 46 47 48 45
Number of participants at inception date 32 36 35 38 30
Estimated number of B shares to be allocated,
subject to possible recalculation 1,531,492 1,018,220 740,208
as a percentage of total shares 0.5 0.4 0.3
as a percentage of voting rights 0.5 0.3 0.2
Number of participants at reporting datet 31 32 29
Vesting date 27 April 2024 27 April 2023
Realised performance target, % 69 -
Actual number of performance shares A granted on vesting date 191,363 -
Actual number of performance shares B granted on vesting date 532,000 -
Total number of B shares granted on vesting date 723,363 -
as a percentage of total shares 0.3 -
as a percentage of voting rights 0.2 -
Number of participants at vesting date 31 24
Analysts Share data Communications and IR contact
The following analysts regularly
monitor Cloetta’s development:
Nordea: Stefan Stjernholm
stefan.stjernholm@nordea.com
Handelsbanken:
(coverage temporarily suspended)
Marketplace
Nasdaq Stockholm
Date of listing
16 February 2009
Segment
Mid cap
Sector
Food Producers, Food & Beverage
and Consumer Goods
Ticker symbol
CLA B
ISIN code
SE0002626861
Currency
SEK
Standard trading unit
1 share
No. of shares in issue
288,619,299 A and B shares
Highest price paid in 2024
SEK 27.56 (28 October 2024)
Lowest price paid in 2024
SEK 15.92 (23 April 2024)
Last price paid 2024
SEK 25.20
Share price growth in 2024
37.0 per cent
Laura Lindholm
Director, Communications
& Investor Relations
Communications & IR team
+46 766 96 59 40
ir@cloetta.com
32 Cloetta Annual and Sustainability Report 2024
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30%
20%
14%
11%
7%
6%
5%
7%
67%
Nordic
countries
33%
Other
Financial performance
Net sales and profit
Condensed consolidated profit and loss account
SEKm 2024 2023
Net sales 8,613 8,301
Cost of goods sold -5,747 -5,751
Gross profit 2,866 2,550
Selling expenses -1,160 -1,073
General and administrative expenses -899 -742
Operating profit 807 735
Net financial items -148 -165
Profit before tax
659
570
Income tax -182 -133
Profit for the year 477 437
Operating profit, adjusted 910 799
Net sales
Net sales for the year increased by
SEK312m to SEK 8,613m (8,301) com-
pared to last year. Organic growth was 4.7
per cent and structural changes were -0.9
per cent. Sales of Branded packaged prod-
ucts increased organically by 1.9 per cent.
Pick & mix sales increased organically by
12.8 per cent.
Sales of Branded packaged products
account for 72 per cent (74) of total sales,
and Pick & mix accounts for 28 per cent (26)
of total sales. Divided by category, candy
accounts for 62 per cent (62) of sales and
chocolate accounts for 21 per cent (19).
Pastilles account for 9 per cent (10), chew-
ing gum for 5 per cent (5), nuts for 1 per cent
(2) and other products for 2 per cent (2).
Sales in seven main markets
Cloetta has seven main markets, of which
Sweden is the largest with around 30 per
cent (30) of Cloetta’s sales. The second
largest market is Finland with 20 per cent
(21). The Netherlands accounts for 14 per
cent (15), Denmark for 11 per cent (10),
Germany for 7 per cent (6), Norway for 6 per
cent (6) and the UK for 5 per cent (5).
Sales of Branded packaged products
grew organically in Sweden, Denmark,
Norway, the Netherlands, Germany, Inter-
national Markets, the UK and declined
slightly in Finland. Sales of Pick & mix grew
in all Cloetta’s markets except the UK.
International Markets
In addition to the main markets, Cloetta’s
products are sold through distributors in
more than 60 countries. Sales in these
other markets increased in 2024 and
accounted for 7 per cent (7) of Cloetta’s
sales.
Pricing strategies
In Cloetta’s main markets, the grocery trade
is consolidated with few, very large retail
chains. Concentration of the grocery retail
trade exerts strong price pressure on all our
suppliers. Cloetta continuously improves
its efficiency to cope with the pressure from
the grocery retail trade.
To offset changes in raw material costs
and exchange rates, Cloetta’s strategy is
to pass these on by adjusting its prices.
Further more, in a high inflationary environ-
ment, Cloetta’s strategy is to protect its
profitability by compensating for all input
Net sales
SEKm
2,500
2,000
1,500
1,000
500
0
0
500
1000
1500
2000
2500
Q4Q3Q2Q1
2023 2024
Cloetta’s net sales by country
%
30%
Sweden
20%
Finland
14%
The Netherlands
11%
Denmark
7%
Germany
7%
International
Markets
6%
Norway
5%
The UK
Net sales – change
SEKm
10,000
9,000
8,000
7,000
6,000
5,000
5000
6000
7000
8000
9000
10000
20242023
Exchange
rate changes
Structural
changes
Organic
growth
8,301
394
–70
–12
8,613
33Cloetta Annual and Sustainability Report 2024
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Quarterly data
2024 Q4 Q3 Q2 Q1 2023 Q4 Q3 Q2 Q1
Net sales, SEKm 8,613 2,285 2,196 2,038 2,094 8,301 2,182 2,148 1,998 1,973
Operating profit, SEKm 807 252 238 124 193 735 174 201 182 178
Operating profit, adjusted, SEKm 910 258 238 222 192 799 200 208 191 200
Operating profit margin, % 9.4 11.0 10.8 6.1 9.2 8.9 8.0 9.4 9.1 9.0
Operating profit margin, adjusted, % 10.6 11.3 10.8 10.9 9.2 9.6 9.2 9.7 9.6 10.1
Net financial items
SEKm 2024 2023
Exchange differences on cash and cash equivalents in foreign currencies -35 -43
Other financial income 83 91
Unrealised gains or losses on single currency interest rate swaps -19 -45
Interest expenses on third-party borrowings and realised gains or losses
on single currency interest rate swaps -149 -141
Interest expenses, third-party pensions -9 -9
Other financial expenses -19 -18
Net financial items -148 -165
Key ratios
% 2024 2023
Gross margin 33.3 30.7
Operating profit margin 9.4 8.9
Operating profit
margin, adjusted 10.6 9.6
Return on capital
employed 11.2 10.9
Return on equity 8.8 8.6
For definitions, see pages 170–171.
Operating profit, adjusted
SEKm
0
50
100
150
200
250
300
Q4Q3Q2Q1
2023 2024
Operating expenses – change
SEKm
8,000
7,500
7,000
6,500
6,000
5,500
5,000
5000
5500
6000
6500
7000
7500
8000
20242023
Personnel
Transportation
Energy
Depreciation,
amortisation and
impairment charges
Maintenance
Leasing
Advertising,
promotion, selling
and marketing
Other
7,566
221
81
-1 -248
66
6
1
76
38
7,806
Raw materials,
packaging material
and finished goods
costs in absolute terms, also including
packaging, freight and energy costs, through
price increases towards customers as well
as cost savings and reducing overall energy
consumption.
Gross profit
Gross profit amounted to SEK 2,866m
(2,550), which equates to a gross margin of
33.3 per cent (30.7). Gross profit, adjusted
for items affecting comparability, amounted
to SEK 2,841m (2,598), which equates to a
margin of 33.0 per cent (31.3). The increase
in gross profit, adjusted, was mainly driven by
continued fair pricing and margin-enhancing
initiatives in Pick & mix and a favourable mix
in our Branded packaged business, partially
offset by higher input costs.
Operating profit
Operating profit amounted to SEK 807m
(735). Operating profit, adjusted for items
affecting comparability, amounted to
SEK910m (799). The adjusted operating
profit was positively impacted by higher
gross profit partially offset by increased
marketing investments in core brands.
Items affecting comparability
Operating profit for the year includes items
affecting comparability of SEK -103m (-64),
mainly for impairments of intangible assets
related to the divestment of the Nutisal brand.
Employees
The average number of employees was
2,577 (2,582).
Research and development
Costs for research and development (R&D)
were charged to operating profit for an
amount of SEK 57m (37) and are primarily
attributable to the development of new
product and brand varieties as well as
packaging solutions within the framework
of the existing product range. No expenses
for research and development have been
capitalised.
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.
Net financial items
Net financial items for the year amounted
to SEK -148m (-165). Net interest expenses
related to external borrowings, cash pool
and realised results on single currency
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Sensitivity analysis
Change
Profit
before tax
Currency risk
If the Swedish krona
weakens/strengthens
against the euro
-/+ 10% +/-
SEK 53m
Interest rate risk
Interest rate
+/- 1% -/+
SEK 7m
Commodity price risk
Average raw
material prices
+/- 10% -/+
SEK 195m
48%
23%
6%
4%
3%
16%
73%
15%
12%
60%
33%
7%
interest rate swaps were in total SEK -66m
(-50), net exchange differences on cash
and cash equivalents were SEK -35m
(-43) which mainly related to the develop-
ment of the Norwegian krona against the
euro. Other financial items amounted to
SEK-47m (-72) of which SEK -19m (-45)
related to the unrealised results on single
currency interest rate swaps. Of the total
net financial items SEK -56m (-58) is non-
cash in nature.
Profit for the year
Profit for the year was SEK 477m (437).
Income tax for the year was SEK -182m
(-133). The effective tax rate for the year
was 27.6 per cent (23.3) and was negatively
impacted by the revaluation of deferred tax
positions following changes in tax rates,
increased provisions for tax losses carry
forward in the UK and differences between
expected and actual tax filings. Profit for the
year equates to basic and diluted earnings
per share of SEK 1.67 (1.53).
Sensitivity analysis
The effects on profit before tax of changes
in the Swedish krona against the euro, inter-
est rate and average raw material prices are
shown in the table at the right. These are
estimated effects which could occur with
an isolated change in each variable and
should be interpreted with caution. The
calculations are hypothetical and should
neither be considered as an indicator of
either of these factors being more or less
likely to change, nor the size of the magni-
tude of the change. Real changes and their
effects may be larger or smaller than pre-
sented in the table. In addition, it is likely that
the actual changes will affect other items,
and that actions by Cloetta and others, as
a result of the changes, may thereby affect
other items.
Cloetta’s development is affected
by multiple factors, which include those
disclosed in the section Risks and risk
management on pages 40–44.
Operating expenses – by type
%
Operating expenses – by category
%
Cost of goods sold
%
48%
Raw materials,
packaging material
and finished goods
23%
Personnel expenses
6%
Advertising,
promotion, selling
and marketing
4%
Amortisation/
depreciation
3%
Transportation
16%
Other
73%
Cost of goods sold
15%
Selling expenses
12%
Administrative
expenses
60%
Raw material and
packaging
33%
Manufacturing costs
7%
Distribution and
warehousing
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Financial position
Consolidated balance sheet
SEKm 31 Dec 2024 31 Dec 2023
ASSETS
Non-current assets
Intangible assets 5,833 5,862
Property, plant and equipment 1,695 1,686
Deferred tax asset 59 23
Derivative financial instruments 1 5
Other financial assets 4 3
Total non-current assets 7,592 7,579
Current assets
Inventories 1,336 1,292
Trade and other receivables 1,256 1,089
Current income tax assets 4 47
Derivative financial instruments 4 18
Cash and cash equivalents 953 658
Total current assets 3,553 3,104
TOTAL ASSETS 11,145 10,683
EQUITY AND LIABILITIES
Equity 5,434 5,098
Non-current liabilities
Long-term borrowings 2,306 2,264
Deferred tax liability 910 900
Derivative financial instruments 4 8
Provisions for pensions and other long-term employee benefits 378 382
Provisions 163 160
Total non-current liabilities 3,761 3,714
Current liabilities
Short-term borrowings 203 220
Derivative financial instruments 45 1
Trade and other payables 1,573 1,585
Provisions 11 14
Current income tax liabilities 118 51
Total current liabilities 1,950 1,871
TOTAL EQUITY AND LIABILITIES 11,145 10,683
Assets
Total assets at 31 December 2024
amounted to SEK 11,145m (10,683), which is
an increase of SEK 462m compared to the
previous year.
Non-current assets
Intangible assets totalled SEK 5,833m
(5,862). The change consists mainly of
impairments of SEK -91m and disposals
of trademarks of SEK -57m, related to the
divestment of the Nutisal brand, amorti-
sation of SEK -12m (-13) and exchange
differences related to intangible assets
recognised in foreign subsidiaries of
SEK 130m (-10). Investments for the year
amounted to SEK 1m (2). Of total intangible
assets, 99 per cent (99) or SEK 5,784m
(5,803) pertained to goodwill and trade-
marks at 31December 2024. Goodwill and
trademarks are tested at least yearly for
impairment.
Property, plant and equipment amounted
to SEK 1,695m (1,686). The year’s invest-
ments amounted to SEK223m (377).
Investments were primarily in continuous
efficiency-enhancing and replacement
investments in the existing production lines,
as well as investments in Pick & mix fixtures.
Reversal of impairment losses amounted
to SEK31m (17) and are related to the post-
poned investment in the greenfield facility
and closure of the factories in Roosendaal,
the Netherlands and Turnhout, Belgium.
Depreciation amounted to SEK-272m
(-282). Exchange differences related to
property, plant and equipment recognised
in foreign subsidiaries amounted to SEK
45m (-5) during the year. Other movements
add up to SEK -18m (-2).
Current assets
Current assets amounted to SEK 3,553m
(3,104). This change is mainly due to higher
cash and cash equivalents of SEK 295m
and higher trade and other receivables of in
total SEK 167m.
Equity and liabilities
Equity
Consolidated equity at 31 December 2024
amounted to SEK 5,434m (5,098), which
equates to SEK 19.0 (17.9) per share. On
the balance sheet date, the share capital
amounted to SEK 1,443m (1,443). The
equity/assets ratio on the same date was
48.8 per cent (47.7).
36 Cloetta Annual and Sustainability Report 2024
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Liabilities
Non-current liabilities amounted to
SEK3,761m (3,714), which is an increase of
SEK 47m compared to previous year. Long-
term borrowings totaled SEK2,306m
(2,264) and consisted of SEK 2,232m
(2,187) in gross non-current loans from
credit institutions, SEK 80m (85) in non-
current lease liabilities and SEK -6m (-8) in
capitalised transaction costs. The deferred
tax liability increased by SEK 10m to
SEK 910m.
Pension provisions decreased by
SEK-4m to SEK 378m. The long-term pro-
visions of SEK 163m (160) relate to the sev-
erance payments and outplacement costs
recognised in relation to the announced
closure of the factories in Turnhout, Bel-
gium and Roosendaal, the Netherlands.
Total short-term borrowings amounted
to SEK 203m (220) and consisted of com-
mercial papers of SEK 149m (149), current
lease liabilities of SEK 56m (74), accrued
interest on borrowings from credit insti-
tutions of SEK 2m (2) and capitalised
transaction costs of SEK -4m (-5).
Borrowings
In the second quarter of 2024, Cloetta
extended the maturity of two of its loan
facilities with the existing bank group by
one year.
The facilities agreement bears variable
interest at a rate based on STIBOR, plus an
applicable fixed margin for loans in SEK,
and variable interest at a rate based on
EURIBOR plus an applicable fixed margin
for loans in EUR. The applicable margin
at 31 December 2024 was 0.95 per cent
(0.95) for the outstanding loans in SEK
and 1.05 per cent (1.05) for the outstanding
loans in EUR. Interest on the issued com-
mercial papers at 31 December 2024
amounted to 3.08 per cent (4.85). Further-
more, an additional 35 per cent (35) of the
fixed applicable margin on the unutilised
amounts of the credit revolving loans is paid
as a commitment fee.
The effective interest rate for the loans
from credit institutions and the commercial
papers was 4.81 per cent (4.42) during the
year. The effective interest rate including
the effect of single currency interest rate
swaps was 3.56 per cent (2.85).
Change in capital employed
Capital employed during the year increased
by SEK 397m to SEK 8,370m (7,973)
compared to last year.
Net debt
Interest-bearing liabilities exceeded cash
and cash equivalents and other interest-
bearing assets by SEK 1,610m (1,825). The
net debt/equity ratio on the balance sheet
date was 29.6 per cent (35.8).
Net debt
SEKm 31 Dec 2024 31 Dec 2023
Gross non-current loans from credit institutions 2,232 2,187
Commercial papers 149 149
Lease liabilities 136 159
Derivative financial instruments (non-current and current) 44 -14
Interest payable 2 2
Gross debt 2,563 2,483
Cash and cash equivalents -953 -658
Net debt 1,610 1,825
Equity/assets ratio
At 31 December, %
50
40
30
20
10
0
0
10
20
30
40
50
20242023202220212020
Equity
At 31 December, SEKm
6,000
5,000
4,000
3,000
2,000
1,000
0
0
1000
2000
3000
4000
5000
6000
20242023202220212020
Net debt/EBITDA
SEKm x
2,400
2,000
1,600
1,200
800
400
0
0
400
800
1200
1600
2000
2400
20242023202220212020
0
1
2
3
Net debt, SEKm
Net debt/EBITDA, x
37Cloetta Annual and Sustainability Report 2024
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Cash flow statement
Condensed consolidated cash flow statement
SEKm 2024 2023
Cash flow from operating activities
before changes in working capital
961 878
Cash flow from changes in working capital -196 -100
Cash flow from operating activities 765 778
Investments in property, plant and equipment -162 -280
Investments in intangible assets -1 -2
Free cash flow 602 496
Other investing activities
Disposals of property, plant and equipment 72 2
Cash flow from other investing activities 72 2
Cash flow from operating and investing activities 674 498
Cash flow from financing activities -367 -379
Cash flow for the year 307 119
Cash and cash equivalents at beginning of year 658 583
Cash flow for the year 307 119
Exchange difference -12 -44
Cash and cash equivalents at end of year 953 658
Free cash flow
The free cash flow was SEK 602m (496).
Cash flow from operating activities before
changes in working capital was SEK 961m
(878). The cash flow from changes in work-
ing capital was SEK -196m (-100). The cash
flow from investments in property, plant
and equipment and intangible assets was
SEK -163m (-282).
Cash flow from changes
in working capital
Cash flow from changes in working capital
was SEK -196m (-100). The cash flow from
changes in working capital was negatively
impacted by an increase in receivables
amounting to SEK-131m (-63), a decrease
in payables of SEK -64m (175) and an
increase in inventories for an amount of
SEK -1m (-212).
Cash flow from other investing activities
Cash flow from other investing activities
was SEK 72m (2) and mainly relates to the
proceeds from the divestment of the Nutisal
brand.
Cash flow from financing activities
Cash flow from financing activities was
SEK-367m (-379). The cash flow from financ-
ing activities was related to the dividend
distribution of SEK -285m (-285), payments
of lease liabilities of SEK -79m (-88), net pro-
ceeds and repayments of loans from credit
institutions and commercial papers includ-
ing transaction costs of SEK -3m (-5) and
purchase of treasury shares of SEK 0m (-1).
Cash and cash equivalents
The net cash flow was SEK 307m (119),
which together with exchange differences
of SEK -12m (-44) increased cash and cash
equivalents by SEK 295m to SEK 953m,
compared to SEK 658m in the previous
year. Cloetta had an unutilised credit facility
of SEK 2,521m (2,441) and the possibility to
issue additional commercial papers for an
amount of SEK 850m (850).
Cloetta’s working capital is exposed to
seasonal variations, partly resulting from
a build-up of inventories in preparation for
increased sales ahead of the Christmas
holiday. This means that the working capital
requirement is normally highest during the
summer and lowest at year-end.
Free cash flow
SEKm
0
200
400
600
800
20242023202220212020
Cash flow from
operating activities
SEKm
1,000
800
600
400
200
0
0
200
400
600
800
1000
20242023202220212020
Cash flow from
financing activities
SEKm
0
-100
-200
-300
-400
-500
-600
-600
-500
-400
-300
-200
-100
0
20242023202220212020
38 Cloetta Annual and Sustainability Report 2024
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Future outlook
Goal attainment
Cloetta’s target is to increase sales
organically at least in line with market
growth. Historically, annual growth in
the markets has been one to two per
cent, although in the last years the
growth in the market has been higher
in line with the overall inflationary
environment.
In 2024, Cloetta’s organic growth
was 4.7 per cent. Sales of Branded
packaged products grew organically by
1.9 per cent and Pick & mix sales grew
organically by 12.8 per cent. The strong
growth was primarily driven by a con-
tinued strong pricing execution. The
stable volumes are a result of Cloetta’s
strategic agenda to strengthen its core
brands over the last years and ability
to execute. Cloetta’s long-term target
is an adjusted EBIT margin of at least
14 per cent. In 2024, the adjusted EBIT
margin was 10.6 per cent (9.6). The
increase was mainly driven by margin-
enhancing initiatives in the Pick & mix
business segment.
Another of Cloetta’s long-term
targets is to keep the net debt/EBITDA
ratio around 2.5x. At 31 December
2024 the net debt/EBITDA ratio was
at an all-time low of 1.3x (1.7) and well
below the target.
Cloetta’s policy is to have a dividend
payout ratio of 40 to 60 per cent of
profit for the year. The Board proposes
an ordinary dividend of SEK 1.10 per
share (1.00), corresponding to 66 per
cent (65) of profit for the year, and cor-
responding to 57 per cent of the profit
for the year excluding impact of the
impairment and other items affecting
comparability relating to the divestment
of the Nutisal brand. The ambition is to
continue to propose a stable dividend.
Profitable growth
Cloetta has during the past years firmly
delivered on the set strategic priorities
and its related financial targets. The
focus in 2025 will be on continued prof-
itable growth as well as driving further
cost-savings and efficiency activities
throughout the entire value chain.
Financial outlook
As in earlier years, Cloetta is not issuing
any financial forecast for 2025.
Environmental impact and
environmental management
Cloetta works to reduce its environ-
mental impact through systematic
environmental management. Our
greatest direct environmental impact
comes from water and energy con-
sumption, wastewater emissions,
waste and transportation. Over the
entire life cycle of the products, the
most significant environmental impact
arises during raw material and pack-
aging production. Cloetta complies
with the statutory environ mental
requirements and is not involved in any
environmental disputes. At 31 Decem-
ber 2024, Cloetta conducted oper-
ations at six plants in five countries.
The plant in Ljungsbro, Sweden was
subject to reporting requirements
according to the Swedish Environ-
mental Code. These permits apply
until further notice. The manufactur-
ing units outside Sweden adapt their
operations, apply for the necessary
permits and report to the authorities in
accordance with local legislation. All
of Cloetta’s plants conduct system-
atic environmental management that
includes action plans and monitoring
in a number of areas. Environmental
management is an integral part of
Cloetta’s operations and environmen-
tal aspects are taken into account
when making decisions. Frequent
evaluation and follow-up of measures
increase awareness about the effects
of operations on the environment.
Statutory
sustainability
report
Pursuant to the Swedish
Annual Accounts Act, Chapter
6, Section 10, Cloetta AB (publ)
has chosen to prepare its stat-
utory sustainability report as a
separate report from the annual
report. The statutory sustaina-
bility report consists of pages
63-73 (general information),
74–91 (environmental informa-
tion), 92–103 (social informa-
tion) and 104–106 (governance
information).
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Risks and
risk management
Uncertainty about future events is a natural part of all business activities.
Future events can have a positive impact on operations through opportunities
to create increased value, or a negative impact through risks that may have
an adverse effect on Cloetta’s business and results.
New risks can arise as a result of events or
decisions that are beyond Cloetta’s control,
but they can also be an effect of incorrect
risk management within Cloetta or among
its suppliers or customers.
Organisation for risk management
Cloetta’s Board of Directors has a respon-
sibility to the shareholders to oversee the
company’s risk management. Risk assess-
ment associated with business develop-
ment and long-term strategic planning is
prepared by the Group Management Team
and decisions are made by the Board of
Directors.
The Group Management Team continu-
ally reports to the Board of Directors on risk
areas such as the Group’s financial status
and compliance with the Group’s finance
policy. Operational risk management that
takes place at all levels of the organisation
is regulated by Cloetta’s Code of Conduct
and a number of other central policies.
Identification of risks
The identification of risks and proactive
measures to limit them or prevent them from
materialising and having a negative impact
on operations, is of fundamental impor-
tance for operations and is a central part of
every manager’s responsibility at Cloetta.
Cloetta works continuously to assess and
evaluate the risks to which the organisa-
tion is, and can be, exposed. All events that
could affect confidence in Cloetta or dis-
rupt operations are essential to monitor and
minimise. This is the responsibility of the
Group Management Team and is managed
through dialogue with various stakeholders.
Risk management
Effective handling of risks is an integral
part of Cloetta’s management and control.
Rapid distribution of relevant information
is ensured via the company’s management
structures and processes. Where possible,
risks are eliminated, and undesired events
are minimised through proactive measures.
Alternatively, risks can be transferred, for
example through insurance or agreements.
However, certain risks are impossible to
eliminate or transfer. These are often an
active part of business operations.
Risk overview
A number of risk areas have been identi-
fied through Cloetta’s risk management
process. A selection of these, and a brief
description of how each risk area is han-
dled, is presented on the following pages.
The Group’s financial risk management is
also described in more detail in Note 26, on
pages 143–145.
Pages 56–57 contain a description of
the internal control processes and risk
assessment aimed at preventing misstate-
ments in the financial reporting.
Management of risks in the workplace
environment is described in the Sustainabil-
ity report on pages 92–97.
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Industry and market-related risks
Cloetta works continuously to assess and evaluate the risks to which the Group is, and can
become, exposed. Critical external risks are managed both strategically through business and
product development, and operationally through daily purchasing, sales and marketing activities.
RISKS
Probability
MITIGATION
Impact
Market
climate
Crises can have a negative impact on consumers’ disposable income
and consumption patterns. This can affect Cloetta both with lower
sales as well as a shift towards more price consciousness that can
lead to retail customers experiencing lower profitability, which leads
to price pressure.
A new resurging global pandemic may have a negative impact on con-
sumption patterns as well as a sharp decrease of mobility which lower
sales of impulse categories in channels such as convenience stores
and travel retail.
Historically, the confectionery market has been relatively mildly
affected by market downturns in consumption. This is particularly true
for Cloetta’s products, which most people can afford to buy and our
products are also available in discount price channels. To support the
customers’ business, Cloetta cooperates with its customers on in-store
sales activities and other measures.
The majority of Cloetta’s sales comes from grocery stores, which
remained open during a global pandemic as they were considered
essential for society. Cloetta has proven to be able to adjusts its busi-
ness model to cope with the huge changes of consumer behaviour by
being agile and adaptable.
Competition
The confectionery market is highly competitive and includes several
major players. Furthermore, grocery retailers offer private labels that
compete with certain Cloetta products.
Cloetta is a significant pick & mix player, which by its nature is a market
that often consists of multi-year contracts that must be continuously
renewed. Competition from other players, including the grocery retail
chains, and Cloetta’s strategy to improve profitability may result in
losses of major contracts.
This competition means that Cloetta needs to continue on its strategic
journey to strengthen its key brands versus competition by good com-
mercial execution, not the least by increasing brand support to compet-
itive levels. Strong brands lead to more sales, can bear premiumisation
and demand a price premium.
Cloetta competes in the market by a strong consumer focus approach,
insights generated will lead to product innovation, product quality, brand
recognition and loyalty, marketing investments and in-store execution.
Cloetta endeavours to offer the best pick & mix concepts in terms of
the customer and consumer experience. Furthermore, an integrated
production chain enables Cloetta to be cost-effective in Pick & mix.
Retail trade
development
The European grocery and service trade has undergone a process of
consolidation leading to the establishment of large, sophisticated play-
ers with substantial purchasing power. These major players are not
necessarily dependent on individual brands and can hold back price
increases and demand higher investment in marketing initiatives. They
can also take over shelf space that is currently used for Cloetta’s prod-
ucts for their own brands.
E-commerce is challenging the current retail structure and will over
time likely change the retail landscape substantially. The introduction of
self-scanning services in stores might impact sales of Cloetta’s prod-
ucts since they are often placed next to regular store checkouts.
As with most consumer-facing companies, major retailers are increas-
ing their efforts on backing climate change and are requesting and
even demanding their suppliers to do the same.
Cloetta’s strategic direction to strengthen its key brands and market
position, together with a strong sales force and close cooperation with
the retail trade enables Cloetta to maintain good relations with the retail
trade. Cloetta also works actively with new sales channels. Cloetta has
a relatively wide and diversified customer base.
Cloetta is working actively with retailers regarding e-commerce, help-
ing them to learn how to sell impulse confectionery products online.
By supporting retailers in learning how to sell products in self scanning
and -checkout areas, Cloetta is able to maintain sales in the checkout
area.
Cloetta joined the Science Based Target initiative in 2020, and has
committed to reduce its greenhouse gas emissions by 46 per cent by
2030, enabling us to also meet customers’ expectations and demands.
Consumer
trends
Health and
Sustainability
Health trends and the debate on health, weight and sugar may have a
negative impact on confectionery consumption. The health trend has
also spurred a growing interest in natural raw materials.
Furthermore, there is a growing interest amongst consumers, espe-
cially in North America, to use drugs to help with weight loss and where
the drug’s effectiveness requires the patient to adhere to a lower
sugar diet.
In the wake of rapid globalisation, individual consumers are more
aware of how their consumption patterns affect the environment and
social/ethical conditions all over the world. Consumers want to know
more about product origins, manufacturing methods and raw mate-
rials. Claims suggesting that Cloetta, or Cloetta’s suppliers, do not
take adequate environmental or social responsibility could damage
Cloetta’s brand.
Health trends have not affected confectionery sales to any great extent,
since confectionery is often eaten as a small luxury in everyday life.
Cloetta has the For You pillar within the sustainability agenda, where
we inform consumers about product content and calories, and we
work to continue to develop products which offer lower sugar or sugar-
free alternatives next to portion control in general. We do not see a
strong consumer trend against confectionery consumption. We also
work on dental health propositions to promote dental health. Cloetta’s
sustainability agenda focuses on social, environmental and consumer-
centric areas in order to improve our overall performance and meet
the current and future needs of our consumers. Consumers’ increased
awareness opens an opportunity to inform and be transparent with our
sustainability performance.
Improving social and enviormental conditions in our supply chain
remains a priority, as reflected in our Supplier Code of Conduct.
Cloetta sources certified raw materials where this is possible and
continuously looks to improve conditions through cooperation with
suppliers and NGO’s.
41Cloetta Annual and Sustainability Report 2024
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RISKS
Probability
MITIGATION
Impact
Laws and
taxes
Cloetta conducts operations through companies in a number of
countries. New legislative requirements in the various markets where
Cloetta are active may lead to restrictions in operations or introduce
new and increasing requirements affecting its operations and its
results. There is a risk that applicable tax regulations in different mar-
kets will change, or that the interpretations of the same will change,
possibly with an adverse retroactive effect, leading to an increasing
tax pressure.
Cloetta continuously assesses legislative developments in order to
predict and prepare its operations for possible changes.
Provisions for legal and unresolved tax disputes or uncertainties, are
based on an estimation of the related costs. Estimates are made with
the support of legal and tax advice where needed and are based on
the information available. An increased focus on compliance in various
areas including increasing tax transparency requirements will require
more time and resources spent on ensuring such compliance and
reporting. The introduction of sugar taxes and fat taxes often have a
short-term impact on sales.
Raw material
prices and cost
inflation
Price development for raw materials is steered mainly by supply and
demand and is beyond Cloetta’s control. The prices of sugar and
many of the other raw materials purchased by Cloetta can also be
affected by agro-political decisions in the EU regarding quotas, sup-
port, subsidies, trade barriers, general geopolitical tensions, and also
by rising living standards and the activity of financial investors on the
commodities exchanges.
Input costs, including for raw materials, packaging, freight, and energy,
have been increasing significantly, constituting a risk for negative
impact on Cloetta’s profitability.
Cloetta continuously monitors the development of raw material prices,
and all purchasing is carried out through a central procurement func-
tion. To ensure access and price levels, Cloetta normally enters into
supplier contracts that cover the need for raw materials for a period
of 6–9 months ahead. Cloetta may choose to deviate from this policy,
should higher flexibility be deemed required. Cloetta’s policy is to com-
pensate for higher raw material costs by raising prices to its customers.
In a high inflationary environment, Cloetta’s strategy is to protect its
profitability by compensating for all input costs in absolute terms, also
including packaging, freight and energy costs, through price increases
towards its customers as well as cost savings and reducing overall
energy consumption.
Increased
geopolitical
uncertainty
Tensions between the US and China, Russia’s escalation of the war
in Ukraine, Middle East tension with conflicts and political instability
remains high and entails risks of further impact on the global economy,
further cost inflation, disruptions in supply chains and significant impli-
cation for the European security and global energy markets.
Cloetta does not have any significant direct financial exposure to any
of the countries involved. However, the company is being impacted by
rising input costs and global supply chain challenges, which are being
addressed as commented on in the sections for Raw material prices,
Cost inflation, Interest rate risks and Disruption and relocation of prod-
uct manufacturing.
Operational risks
Operational risks can often be influenced, which is why they are normally regulated by policies,
guidelines and instructions. Operational risks are part of Cloetta’s day-to-day work and are
managed by the operating units. Operational risks include those related to the brand, relocation of
production, insurable risks and environmental, health and safety-related risks and IT-related risks.
RISKS
Probability
MITIGATION
Impact
Business
ethics and
brand risks
Demand for Cloetta’s well-known brands is driven by consumers’
association of these brands with positive values. If Cloetta or any of the
Group’s partners take any measures that conflict with the values
represented by the brands, the Cloetta brands could be damaged.
Cloetta takes a proactive approach by adhering to a Code of Conduct and
a policy on anti-corruption and bribery, as well as responsible marketing.
Cloetta’s Supplier Code of Conduct covers human and labour rights,
business ethics and anti-corruption, health and safety, and environ-
mental protection.
Social
conditions
in the supply
chain
Cloetta uses some raw materials that originate from regions or
countries with an increased risk of human rights violations and corrupt
behaviour.
Further, political instability in places where raw materials are produced
can have a negative impact on availability and costs.
Cloetta’s Supplier Code of Conduct is part of all supplier agreements.
Cloetta assesses the raw materials, monitors suppliers for certain
materials based on climate, social and human-rights related risks, and
prioritises involvement with supporting organisations.
100 per cent of all cocoa purchased to produce Cloetta products is
Rainforest Alliance certified.
With palm oil-based vegetables oils, Cloetta continues to source 100
per cent RSPO Certified Segregated palm oil, which is one of the high-
est standards to ensure that human rights are upheld in sourcing sus-
tainably farmed palm oil. Certification of Cloetta’s factories according
to this standard has been upheld since 2019.
Since 2017 Cloetta has purchased sustainable and traceable shea
butter from women cooperatives in Africa.
Cloetta participated in a pilot initiative with Rainforest Alliance to
close the income gap for cocoa farmers in Africa and will continue the
collaboration on the Living Income Fund.
42 Cloetta Annual and Sustainability Report 2024
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RISKS
Probability
MITIGATION
Impact
Environmen-
tal and climate
related risks
There is a risk that climate change will impact Cloetta. This may involve
transition risks such as changing rules and taxation, as well as physical
risks. Physical risks include changes that are both long-term and
urgent in nature, for example extreme weather conditions and natural
catastrophes that could impact Cloetta’s access to raw materials and
disrupt business operations directly or indirectly.
The climate crisis coincides with a biodiversity crisis and water-crisis,
which agriculture is directly impacted by.
Climate-related risks are becoming an ever-growing concern among
the investment community and new initiatives are receiving more
attention.
Cloetta is raising the ambition level to improve its total environmental
footprint through the work in our sustainability agenda.
We joined the Science Based Targets initiative to set targets and action
plans to reduce our carbon footprint throughout our value chain and in
cooperation with our stakeholders. In our efforts toward climate action,
we have undertaken measures to reduce emissions, such as decreased
energy consumption in our factories, incorporating vegan options into
our candy portfolio, and transitioning to electric company cars.
100 per cent of all cocoa purchased is Rainforest Alliance certified. With
palm oil-based vegetables oils, Cloetta continues to source 100 per
cent RSPO Certified Segregated palm oil, which is one of the highest
standards to ensure deforestation free and sustainably farmed palm oil.
Certification of Cloetta’s factories according to this standard has been
upheld since 2019.
Cloetta manages the environmental and climate impact of its business
operations through systematic work within the scope of the company’s
environmental management system.
Product
safety risks
Handling of food products places high demands on traceability,
hygiene and safety. In a worst-case scenario, inadequate control can
lead to contamination or allergic reactions. These types of deficiencies
in the handling of food products can lead to lower trust in Cloetta and
the Group’s brands.
Cloetta works with first-class raw materials and in accordance with
international quality standards. Analyses through chemical and physical
tests are performed on both raw materials and finished products. Issues
of importance for product safety are collated in special policies. Plans
for information or product recalls in the event of deficiencies have been
prepared.
Insurable
risks
Assets such as factories and production equipment can be seriously
damaged, for example in the event of a fire or power outage. Product
recalls can incur substantial costs, resulting in direct costs, claims for
financial compensation and damage to Cloetta’s reputation. Cargo
may be damaged in transit.
Cloetta has an insurance programme for property and liability risks
appropriate to Cloetta’s operations and works systematically to limit
the risk of incidents and to have robust contingency plans in place to
limit the effects of any incidents.
Disruption and
relocation of
product manu-
facturing
Disturbances and inefficiencies in the supply chain, as well as
undesirable effects on and from the external environment, such as a
fire, strikes, shortage of energy supply or raw- and packaging materials,
pandemics, or extreme weather, could result in stoppages in production,
operations and deliveries, and thus negatively affect the company’s
business and reputation. To optimise efficiency, Cloetta continuously
monitors capacity utilisation in manufacturing and evaluates the need
to move manufacturing from one factory to another. This is however a
complex process that can result in disruptions and delays in production,
which can in turn also lead to delivery problems.
Cloetta has a good monitoring process in place to anticipate short
term disruption both in sourcing and delivery. In our factories we
have clear protective protocols in place to reduce the risk, provide a
safe workplace and limit the impact. We have also prepared certain
scenarios for our plants in case of energy disruptions. Cloetta also
has an experienced and efficient organisation with well-established
routines for handling.
Access to
the right
expertise
To a large extent, Cloetta’s future is dependent on its capacity to recruit,
retain and develop competent senior executives and other key staff.
Cloetta occasionally reorganises and streamlines its operations, which
in the short term may have a negative impact on its performance.
Cloetta endeavours to continue to be an attractive employer.
Employee development and follow-up plans, together with market-
based and competitive compensation, enable Cloetta to recruit and
retain employees.
Cloetta has a strong and experienced organisation that is well
equipped to handle organisational changes.
IT security
Cloetta is highly dependent on having an efficient IT platform. Dis-
ruptions or faults in critical systems can have a direct impact on both
production, financial systems, and business processes. Over the
years, efforts have been made to harmonise and standardise the IT
landscape by minimising the number of supported IT applications and
continuously invest in IT infrastructure. Examples of risk mitigation in
infrastructure is redundant network access, using SaaS (Software
as a Service), for the business-critical solutions, NIS2 compliancy
and continuous internal awareness programs. The IT security is the
defence to protect against potential loss or harm related to technical
infrastructure, use of technology or reputation of our organisation.
Cloetta operates under a centrally controlled IT governance and
continuously mitigates against all dimensions of attacks by assess-
ing its cyber risk profile, remediating where necessary and proactively
managing and investing in its defences. End-users are frequently
trained in information security to further increase the awareness.
43Cloetta Annual and Sustainability Report 2024
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Financial risks
The primary financial risks are composed of foreign exchange, refinancing, interest rate and credit
risks. Financial risks are managed by the Group’s central finance function according to the guide-
lines in the finance policy established by Cloetta’s Board of Directors. Financial risk management
primarily aims to identify the Group’s risk exposure and, with a certain degree of foresight, to
attain predictability in the financial outcome and minimise possible unfavourable effects on the
Group’s financial results, in close cooperation with the Group’s operating units. Consolidating and
controlling these risks centrally enables the Group to minimise the level of risk while reducing the
cost of measures such as currency hedging. Financial risk management is described in detail in
Note 26, on pages 143–145.
RISKS
Probability
MANAGEMENT
Impact
Foreign
exchange
risks
Exchange rate fluctuations affect Cloetta’s financial results in
connection with buying and selling in different currencies (transaction
exposure), and through translation of the profit and loss accounts and
balance sheets of foreign subsidiaries to Swedish kronor (translation
exposure). Cloetta’s reporting currency is the Swedish krona, while
many subsidiaries have the euro as their functional currency, thus
translation exposure is significant. Aside from SEK and EUR, Cloetta
also has exposure to DKK, NOK, GBP and USD.
The objective of Cloetta’s foreign exchange management is to
minimise the effects of exchange rate fluctuations by utilising
incoming currency for payments in the same currency. The Group
hedges parts of its translation exposure through borrowing in
euro and is continuously monitoring the cash positions in foreign
currency and executes FX deals to lower the translation effect
on cash balances in foreign currencies. If the Swedish krona had
weakened/strengthened by 10 per cent against the euro, the
year’s profit would have been around SEK 41m (27) higher/lower.
Refinancing
risks
Refinancing risk refers to the risk that it will not be possible to obtain
financing or that financing can only be obtained at a significantly
higher cost.
Through the term and revolving facilities agreement with the club of
banks and the commercial paper programme, Cloetta has a favourable
situation for accessing financing, for example for potential acquisitions
and significant investment projects. In 2022 Cloetta secured financ-
ing for the greenfield facility in the Netherlands by entering a new term
loan facility and by increasing the multicurrency revolving loan facilities.
The agreed financing is reviewed periodically with the banks to remain
aligned with the progress of the project. In 2024, Cloetta extended its
existing multicurrency term and revolving facilities agreement with the
banks with one year for some facilities. In 2024, Cloetta ended below its
financial target related to a net debt/EBITDA ratio of around 2.5x.
Interest
rate risks
Cloetta is exposed to interest rate risks in interest-bearing current and
non-current liabilities. Although some of the Group’s bank loans are
hedged via interest rate swaps, there is still exposure to interest rate
risk for the parts that are not hedged or when hedges expire.
The Group continuously analyses its exposure to interest rate risk and
performs regular simulations of interest rate movements. Interest rate
risk is reduced by hedging a share of future interest payments through
interest rate swaps. At reporting date Cloetta has covered for an aver-
age 52 per cent of the interest rate risk exposure on the drawn facilities.
In 2024, if the interest rate had been 1 percentage point higher with all
other variables held constant, profit before tax for the year would have
been approximately SEK 7m (6) lower. If the interest rate had been 1
percentage point lower with all other variables held constant, profit
before tax for the year would have been approximately SEK 7m (6)
higher.
Credit risks
Credit risk refers to the risk that a counterparty to Cloetta will be unable
to meet its obligations and thereby cause a loss.
Financial transactions also give rise to credit risks in relation to financial
and commercial counterparties.
Credit risk in trade receivables is relatively limited considering that the
Group’s customer base is diverse and consists mainly of large custom-
ers, and because distribution takes place primarily through the major
grocery retail chains. Customers are subject to credit assessments
in accordance with the credit policy, and receivables balances are
monitored continuously. Cloetta acts promptly in case of delayed pay-
ments. Following the default of Wilko in the UK Cloetta has updated its
payment terms and credit limits policy.
The Group’s counterparties in financial transactions are banks and
credit institutions with good credit ratings (between AA– and A-2).
Valuation
risks
The Group has a number of assets and liabilities that have been valued
with the input from or the help of various experts. These include good-
will, trademarks and deferred tax assets on the asset side and the pen-
sion liability and deferred tax liabilities on the liability side. The valuation
risk refers to the risk that these assets and liabilities have a lower value
than recognised in the balance sheet and have to be impaired.
Assets and liabilities are tested for impairment annually or when there
is an indication that such testing may be necessary. Read more in Note
12, Intangible assets on pages 127–128 and Note 30, Critical accounting
estimates and judgements on pages 148–149.
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Chairman’s comment
Strong platform for
further profitable growth
With a continued ability to navigate both inflation and an operational environment
with increased geopolitical uncertainty, Cloetta looks back on another successful
year. We made significant progress in securing an even stronger platform for further
profitable growth.
Through strong brands, Cloetta reaches
thousands of people every day. Consumer
centricity is a long-term commitment
and the latest result of this is the further
strengthened market position within Pick &
mix, where we have delivered both profit-
ability and growth through developing
both the category itself as well as our
own business.
We also further increased our focus on
our core confectionery portfolio when we
divested the dry roasted nuts brand Nuti-
sal, in line with our plan to continue stream-
lining the brand and product portfolio to
reduce complexity to support the long-
term profitability goal.
After taking on my new role earlier this
year, after several years spent in other
industries and companies, I was impressed
by the strong leadership and market posi-
tion that Cloetta has built over time. The
company has successfully captured many
opportunities to develop the business in
the long-term.
We conclude another year with all-
time high net sales and adjusted operating
profit and an all-time low leverage. We
continue the work to secure a competitive
cost base. I’m very pleased that we con-
tinue to deliver a very healthy cash flow
and have an even stronger balance sheet
to support an increased dividend, well in
line with the higher end of our targeted
range. We will also continue to further
strengthen our leading brands and accel-
erate our work with product innovations
that follow the always evolving consumer
preferences.
This year also included a reassessment of
the greenfield plant project in the Nether-
lands, as announced in September 2024.
The reassessment of the project and
options is done to secure an efficient
manufacturing structure and to validate
if the greenfield remained the optimal
way forward for Cloetta to create long-
term shareholder value. In February
2025 we decided not to proceed with the
project due to increased risk relating to
energy supply and the delayed permitting
process. The reassessment confirmed
the ability to develop Cloetta’s long-term
financial and supply network flexibility
without the greenfield plant.
Our corporate governance continues
to be based on international norms such
as the UN Global Compact’s ten principles
in the areas of human rights, labour, envi-
ronment and anti-corruption. This report
is also our first step in moving into CSRD-
reporting next year.
Cloetta is starting off 2025 from a posi-
tion of strength – a year during which we
will further solidify profitable growth. My
warmest thank you to all our dedicated
employees and to the Group Management
Team for their efforts. Your focus and ded-
ication have been crucial to achieve our
performance!
Stockholm, March 2025
Morten Falkenberg
Chairman of the Board
I’m very proud of
Cloetta’s perfor-
mance in 2024 and
that the company is
very well positioned
to create further
value
45Cloetta Annual and Sustainability Report 2024
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Corporate
Governance Report
The purpose of corporate governance is to ensure that the company is managed
as effectively as possible in the interests of its shareholders, and that Cloetta
complies with all applicable rules. Corporate governance is also aimed at creating
order and establishing systems for both the Board and the Group Management
Team. Well-defined structures, clear rules and processes allow the Board to ensure
that the Group Management Team and employees focus on developing
the business and thereby creating shareholder value.
Cloetta AB (publ) is a Swedish public lim-
ited company, with corporate identification
number 556308-8144. The company’s
class B shares are traded on the Nasdaq
Stockholm, Mid Cap. The company is dom-
iciled in Ljungsbro, Linköping, and its head
office is located in Sundbyberg, Stockholm.
Framework for corporate governance
The governance of Cloetta is based on
the Swedish Companies Act, Swedish
Annual Reports Act, Nasdaq Nordic Main
Market Rulebook for Issuers of Shares (the
“Rulebook for Issuers”), and the Swedish
Corporate Governance Code (the “Code”),
as well as other relevant Swedish and
foreign laws and regulation. Governance
is further established through internal
steering instruments such as the Articles
of Association, instructions, policies and
guidelines. The Code is available on the
website of the Swedish Corporate Govern-
ance Board, which administrates the Code,
www.corporategovernanceboard.se. The
website also includes a description of the
Swedish model for corporate governance.
During the year, Cloetta complied with
Rulebook for Issuers and good stock market
practice and Cloetta has complied with the
Code, without deviations.
1
Shares, shareholders
and voting rights
The share capital of Cloetta AB (publ) con-
sists of class A and class B shares. Each
class B share corresponds to one vote
and each class A share corresponds to
ten votes, although all shares carry equal
entitlement to the company’s assets and
profits. On 31 December 2024, the number
of shares was 288,619,299 of which
282,884,050 were class B shares and
5,735,249 were class A shares, whereof
Cloetta held 2,553,892 class B shares in
treasury. The number of shareholders on
31 December 2024 was 40,831 compared
to 43,164 on 31 December 2023. On 31
December 2024, AB Malfors Promotor was
Cloetta’s largest shareholder, with a holding
corresponding to 42.9 per cent of the votes
and 32.7 per cent of the share capital in the
company. On the same date, there were no
other shareholders representing a mini-
mum of 10 per cent of the voting rights. For
more information about Cloetta’s shares
and shareholders, see section “Share and
shareholders” on pages 29–32.
2
General meeting of shareholders
The decision-making rights of shareholders
in Cloetta AB (publ) are exercised at share-
holders’ meetings. Cloetta’s financial year is
1 January to 31 December. The annual gen-
eral meeting (“AGM”) must be held within
a period of six months after the end of the
financial year. Notice of the AGM must be
given no earlier than six weeks and no later
than four weeks prior to the AGM through
publication in “Post- och Inrikes Tidningar”
(the Swedish Official Gazette) and on the
company’s website. At the same time, con-
firmation that notification has been given
must be published in Dagens Industri.
Every shareholder has the right to
request that a matter shall be taken up at
the AGM and in such case, must submit a
written request to the Board. In order to be
addressed at the AGM, the request must be
submitted to the Board no later than seven
weeks prior to the AGM. In accordance with
Chapter 7, paragraph 32, of the Swedish
Companies Act, at a general meeting of
shareholders, all shareholders have the
right to pose questions to the company
about the matters that are addressed at the
meeting and the financial situation of the
company and the Group.
2024 Annual General Meeting
The most recent AGM was held on 9 April
2024 in Stockholm. The AGM was attended
by 186 individuals representing 62,7 per
cent of the votes in the company. The Board
members, the Group’s President and CEO
as well as the CFO, the company’s inde-
pendent auditors and the chairman of the
nomination committee were also present at
the AGM.
The AGM approved the proposals of
the Board and the nomination committee
regarding:
• Adoption of the balance sheet and the
profit and loss account;
• Appropriation of the earnings of
the company through a dividend of
SEK1.00 per share, corresponding to
SEK285,342,034;
• Approval of the renumeration report;
• Discharge of liability for the board
members and the President and CEO;
• The number of Board members elected by
the AGM to be seven;
• Re-election of sitting Board members
Mikael Svenfelt, Camilla Svenfelt, Alan
McLean Raleigh, Patrick Bergander, Malin
Jennerholm and Pauline Lindwall. Morten
Falkenberg was elected as a new board
member. The AGM elected Morten Falken-
berg as the Chairman of the Board. Aside
from the members elected by the AGM, the
employee organisation LIVS appointed an
employee representative to the Board;
46 Cloetta Annual and Sustainability Report 2024
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strategy
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consumer
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markets
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shareholders
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performance
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Governance
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report
Financial
reports
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1. Shareholders
3. Nomination committee¹
8. Reports, internal control
6. President and CEO
6. The Group Management Team
Governance structure
Vote at the general meeting
Information
Information
Elects the Board of Directors
Goals, strategies, policies,
steering instruments, core values,
remuneration structure
Resolves upon princi-
ples for appointing the
nomination committee
Proposes the Board, auditor and
principles for appointing the nomi-
nation committee ahead of AGM
External steering instruments
Important external steering instruments
that provide the framework for
corporate governance are:
• The Swedish Companies Act
• The Swedish Annual Accounts Act
• Nasdaq Nordic Main Market
Rulebook for Issuers of Shares
• The Swedish Code of Corporate
Governance
Internal steering instruments
Important binding internal control
documents include:
• The Articles of Association
• The Board’s work plan
• Instructions for the President
and CEO, the audit committee,
the remuneration committee and
financial reporting
• Policies
1) The nomination committee prepares proposals for decision that are presented to the AGM. The AGM decides on
principles for appointment of the nomination committee.
2) The Board establishes the committees and appoints their members.
3) The auditor is responsible, on behalf of the shareholders, for auditing Cloetta’s annual accounts and accounting records
and the administration of the Board of Directors and the President and CEO. Reports to the Board of Directors and the
shareholders.
2. General meeting of shareholders
Elects the auditor
7. Auditor³
5. Audit committee
5. Remuneration committee
4. Boards of Directors²
The members of the Board are
appointed by the AGM. Employee
representatives and deputy represent-
atives are appointed by the employee
organisations. The members of the
audit and remuneration committees
are appointed by the Board.
• Setting the Board fees at SEK 800,000 for
the Board Chairman and SEK 340,000 for
each of the other Board members elected
by the AGM. Fees for work on the Board
committees shall be paid in the amount of
SEK 110,000 for each member of the audit
committee, SEK 175,000 for the Chairman
of the audit committee, SEK 100,000 for
each member of the remuneration commit-
tee and SEK 150,000 for the Chairman of
the remuneration committee;
• Fees for the auditor are to be paid accord-
ing to approved account;
• Re-appointing the registered public
accounting firm Öhrlings Pricewater-
houseCoopers AB (“PwC”) as the auditor
for the period until the next AGM. Sofia
Götmar-Blomstedt will continue as the
Lead Audit Partner;
• The implementation of a new share-based
long-term incentive plan;
• Authorisation for the Board of Directors to
resolve upon repurchase of own B-shares.
The complete minutes from the AGM can
be reviewed at www.cloetta.com.
2025 Annual General Meeting
The 2025 AGM will be held on Thursday,
10 April 2025, at 15:00 at Bonnier
Fastigheter Konferens, Torsgatan 21,
Stockholm. The Notice of the Annual
General Meeting was published in March
2025 and contained the Board’s proposals.
For more information, please refer to
www.cloetta.com.
3
Nomination committee
Work of the nomination committee
The principal task of the nomination com-
mittee is to prepare recommendations to be
put before the AGM for decisions regard-
ing election of Board members and the
Chairman of the Board, fees for the Board
of Directors, potential remuneration for
47Cloetta Annual and Sustainability Report 2024
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comment
Targets &
strategy
Market &
consumer
Sustainability
Main
markets
Share &
shareholders
Financial
performance
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Governance
Sustainability
report
Financial
reports
<< Content
committee work, election of auditors and
renumeration for the auditor. In addition, it
shall propose the election of a chairman of
the AGM and rules for the nomination com-
mittee if there is a reason for a change. The
Chairman of the Board presents an annual
evaluation of the Board’s performance
during the year to the nomination committee,
which provides a basis for the nomination
committee’s work together with the pro-
visions of the Code and Cloetta’s own
company- specific requirements. The nom-
ination committee’s recommendations for
election of Board members, board fees and
auditors are presented in the notification of
the AGM and on www.cloetta.com.
Composition of the
nomination committee
In accordance with the decision of the
AGM, Cloetta’s nomination committee shall
consist of at least four and at most six mem-
bers. Of these, one shall be a representative
of the Board and three shall be members
appointed by the three largest shareholders
in terms of voting power per 31 July each
year. The members appointed may them-
selves appoint one additional member.
Independence of the
nomination committee
The majority of the nomination committee’s
members shall be independent in relation
to the company and its Group Management
Team and at least one of these shall also be
independent in relation to the company’s
largest shareholder in terms of voting
power. Of the appointed members, all four
are independent in relation to the com-
pany and its Group Management Team
and three are independent in relation to the
company’s largest shareholder in terms of
voting power.
Shareholder proposals
All shareholders have the right to propose
candidates for election to the Board by
contacting the nomination committee.
Proposals shall be sent to the Chairman
of the nomination committee by e-mail to
nominationcommittee@cloetta.com.
Meetings of the nomination committee
The nomination committee held three
meetings ahead of the 2025 AGM. No fees
have been paid for work on the nomination
committee.
4
Board of Directors
The work of the Board
One of the key tasks of the Board is to serve
the interests of the company and the share-
holders by managing the company’s oper-
ations in such a manner as to assure the
shareholders that their interests in terms
of a long-term profitable growth and value
creation are being met in the best possible
manner. The Board shall also appoint the
President and CEO and ensure that the
company complies with all applicable laws,
the Articles of Association and the Code.
The Board is also responsible for making
sure that the Group is suitably structured
so that the Board can optimally exercise
its governance responsibility over the sub-
sidiaries and that the company’s financial
accounting, financial management and
financial circumstances in general can be
controlled satisfactorily. At least once a
year the Board shall meet with the com-
pany’s auditor without the presence of the
Group Management Team and shall con-
tinuously and at least once a year evaluate
the performance of the President and CEO.
The Board of Directors shall also prepare
necessary proposals before the AGM.
Composition of the Board
According to the Articles of Association,
Cloetta’s Board of Directors shall consist
of at least three and at most ten members
that are elected annually at the AGM for a
period until the next AGM has been held.
On 9 April 2024, the AGM resolved that
the Board shall have seven members
appointed by the AGM. The AGM elected
the following Board members to serve
for the period until the next AGM: Morten
Falkenberg (Chairman), Mikael Svenfelt,
Nomination committee ahead of the 2025 AGM
Members Appointed by Independent¹
Share of votes at
31 Dec 2024, %
Lars Schedin, Chairman AB Malfors Promotor Yes/No 42.9
Magdalena Kettis Nordea Funds Yes/Yes 2.7
Lena Lundin Ulla Håkanson Yes/Yes 1.5
Morten Falkenberg The Board of Cloetta AB Yes/Yes 0.0
1) Independent from the company and its Group Management Team/from the company’s largest shareholder in terms of
voting power.
Composition of the Board
Fees¹ Attendance²
Elected by the AGM Nationality
Year
elected
Year
of birth
Board
fees
Committee
fees Independence
Board
meetings
Audit
committee
Remuneration
committee
Morten Falkenberg³ Danish 2024 1958 800,000 100,000 Yes/Yes 7/9 3/4
Mikael Norman³ Swedish 2020 1958 0 0 Yes/Yes 2/9 1/4
Camilla Svenfelt Swedish 2016 1981 340,000 110,000 Yes/No 9/9 4/4
Patrick Bergander Swedish 2019 1971 340,000 175,000 Yes/Yes 9/9 4/4
Alan McLean Raleigh British 2018 1959 340,000 100,000 Yes/Yes 9/9 4/4
Mikael Svenfelt Swedish 2008 1966 340,000 100,000 Yes/No 8/9 4/4
Malin Jennerholm Swedish 2022 1970 340,000 110,000 Yes/Yes 9/9 3/4
Pauline Lindwall Swedish 2023 1961 340,000 150,000 Yes/Yes 8/9 4/4
1) The fees refer to set amounts during the period from the AGM on 9 April 2024 until the AGM on 10 April 2025. Board fees shall be paid in amount of SEK 800,000 (750,000) to the Board
Chairman and SEK 340,000 (325,000) to each other board member elected by the AGM. Fees for work on the Board committees will be paid in the amount of SEK 110,000 (100,000) for
each member of the audit committee, SEK 175,000 (150,000) for the Chairman of the audit committee, SEK 100,000 (unchanged) for each member of the remuneration committee and
SEK 150,000 (unchanged) for the Chairman of the remuneration committee; For further details, see Note 7 on page 125.
2) Attendance refers to meetings during the 2024 calender year.
3) At the 2024 AGM on 9 April 2024, Morten Falkenberg was elected to the Board of Directors. Mikael Norman declined re-election.
48 Cloetta Annual and Sustainability Report 2024
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strategy
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consumer
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markets
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shareholders
Financial
performance
Risks & Corporate
Governance
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report
Financial
reports
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Board meetings in 2024
Q4 interim report,
proposals for the AGM,
dividend proposal,
greenfield update
Annual and Sustainability
report, report from
Remuneration Committee,
IT review, greenfield update
Statutory meeting, resolution on
signatory powers and resolution on
instructions and policies, appointment
of directors to board committees and
the nomination committee
Q1 interim report, pick & mix
update, double materiality analysis
presentation, feedback from the Audit
Committee, greenfield update
IT security, International
markets review, Nether-
lands and Germany markets
review, greenfield update
Q2 interim report, working
relating to the company’s
vision, IR & Communications
update, greenfield update
Working session on
greenfield, budget
process for 2025
Q3 interim report, report
from board committees,
Board performance review,
Ecom update, greenfield
reassessment
Budget/ business
plans for the
year ahead and
bonus targets for
2025, greenfield
reassessment
Camilla Svenfelt, Alan McLean Raleigh,
Patrick Bergander, Malin Jennerholm
and Pauline Lindwall. In addition, the
employee organisation LIVS appointed
one employee representative to the Board,
Lena Grönedal. All Board members have
attended Nasdaq’s stock market training
course for boards and management. The
average age of the Board members elected
by the AGM was 57 years at year-end and
three of the seven are women. For infor-
mation about the Board members’ assign-
ments outside the Group and holdings of
shares in Cloetta, see pages 58–59 and
cloetta.com.
Diversity policy
The nomination committee applies rule 4.1
of the Code as its diversity policy to pro-
pose election of directors to the Board.
According to this rule, the board com-
position of the elected directors must
be set with regard to appropriateness to
the company’s operations and phase of
development and must collectively exhibit
diversity and breadth of competence,
experience and background. An equal
balance between the genders should be
aimed for. The objective of the diversity
policy is to underline the importance of
appropriate diversity within the Board
with regard to gender, age, nationality and
experience, professional background
and business expertise. The Nomination
Committee endeavours to achieve diver-
sity and gender balance on the Board.
This is evaluated each year along with
a continuous process to identify future
board candidates with relevant back-
grounds and experience. The proposed
composition of the board more than
satisfies the requirements for expertise
and experience, in view of the company’s
operations and future development.
The proposed composition also met the
applicable requirements including board
independence, sufficient experience
with listed companies and expertise in
accounting and auditing.
Independence of the Board
In accordance with the Code, the majority
of the Board members elected by the
AGM shall be independent in relation to
the company and its Group Management
Team and at least two of these shall also be
independent in relation to the company’s
major shareholders. Of the Board’s seven
members, all are independent in relation to
the company and its Group Management
Team and five are independent in relation
to the company’s major shareholders.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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strategy
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consumer
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markets
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shareholders
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performance
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report
Financial
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The Board’s instructions and policies
On a yearly basis, the Board reviews and
adopts a work plan for its own activities and
those of the Board’s audit and remuneration
committees. The Board also adopts
instructions for the President and CEO and
instructions for financial reporting. Among
other things, these regulate the segregation
of duties between the Board of Directors,
the Chairman of the Board, the President
and CEO and the auditor, quorum, conflict
of interest, the work of the committees,
internal and external reporting, routines
for notification of general meetings, Board
meetings and minutes. In addition, the
Board has issued and adopted a Code of
Conduct that applies throughout the group
for all relationships with employees, cus-
tomers, consumers, suppliers, competitors,
official authorities and non-governmental
organisations (NGO) and other important
policies.
Selection of policies
The Board reviews and
adopts a number of policies
on a yearly basis, these are a
selection of policies:
• Code of Conduct
• Communication and Disclosure
policy
• Finance policy
• HR policy
• Insider policy
• Internal control framework
policy
• IT security policy
• Fraud policy
• Whistleblowing policy
• Anti-bribery and anti-corruption
policy
• Trade controls policy
• Approval and Authorisation
framework
Evaluation of Board performance
The performance of the Board is evaluated
annually in order to continuously improve
the Board’s working methods and effi-
ciency. The Chairman of the Board is
responsible for carrying out the evaluation
and presenting the results to the nomination
committee. The intention of the evaluation
is to gather the Board members’ views on
the Board’s performance, measures that
can be taken to improve the efficiency of
board work and whether the Board has a
well- balanced mix of competencies. The
evaluation provides valuable input for the
nomination committee ahead of the AGM.
In November 2024, Cloetta had a digital
board performance survey using the com-
pany Board portal. The results of the survey
have been reported to and discussed by both
the Board and the nomination committee.
Board meetings
During 2024, the Board held nine
scheduled meetings. The President and
CEO and the CFO, who also acts as the
Board Secretary, take part in the Board’s
meetings. Other members of the Group
Management Team participate as needed
to report on special items of business.
5
Board committees
Audit committee
In 2024, the audit committee consisted of
members Patrick Bergander (Chairman),
Camilla Svenfelt and Malin Jennerholm. The
majority of the committee’s members shall
be independent in relation to the company
and its Group Management Team and at
least one of these shall also be independent
in relation to the company’s major share-
holders. At least one member shall be inde-
pendent and have accounting or auditing
expertise. Of the audit committee’s three
members, all are independent in relation to
the company and its Group Management
Team and two are independent in relation
to the company’s major shareholders. The
work of the audit committee is regulated
by instructions that have been adopted
by the Board as part of its work plan. The
audit committee is responsible for ensur-
ing the quality of the financial and sustain-
ability reporting and the effectiveness of
the company’s internal control and risk
management regarding financial report-
ing as well as overseeing the sustainability
reporting process. In brief, the audit com-
mittee, without affecting the other tasks
and responsibilities of the Board, shall meet
regularly with the company’s auditors to
remain informed about the focus and scope
of the audit of the financial reporting and
the limited assurance of the sustainability
reporting. The company’s auditor shall
be invited to participate in the meetings of
the audit committee. The audit committee
shall meet at least four times every financial
year. All audit committee meetings must
be documented. The audit committee shall
inform the Board about the matters dealt
with by the committee. The committee held
four meetings during 2024.¹
Remuneration committee
The remuneration committee shall have no
more than four members who are appointed
by the Board on a yearly basis. One of the
members shall be the chairman of the com-
mittee. The Board’s remuneration commit-
tee consists of members Pauline Lindwall
(chairman), Mikael Svenfelt, Alan McLean
Raleigh and Morten Falkenberg. The major-
ity of the committee’s members shall be
independent in relation to the company and
its Group Management Team. Of the remu-
neration committee’s members, all four are
independent in relation to the company and
its Group Management Team. The work of
the remuneration committee is regulated by
special instructions that have been adopted
by the Board as part of its work plan. The
main tasks of the remuneration committee
are to prepare recommendations to the
Board for decisions on remuneration prin-
ciples, remuneration and other terms of
employment for the Group Management
Team, to monitor and evaluate programmes
for variable remuneration completed during
the year and ongoing programmes for the
Group Management Team as adopted by
the AGM and to monitor the current remu-
neration structures and levels in the Group.
The remuneration committee shall meet
at least twice every financial year. During
2024 the committee held four meetingss.¹
Chairman of the Board
The Chairman of the Board is elected by
the Annual General Meeting and on 9 April
2024 the AGM elected Morten Falkenberg
as the Chairman of the Board. The Chair-
man shall supervise the work of the Board
and ensure that the Board discharges its
duties and has special responsibility for
ensuring that the work of the Board is well
organised and effectively executed and for
monitoring the Group’s development. The
Chairman oversees the effective imple-
mentation of the Board’s decisions and is
1) In the corporate governance report for 2023, the number of meetings related to the period between the AGM in 2023 and the publication of the 2023 Annual and Sustainability Report.
These numbers are therefore not comparable to last year’s corporate governance report.
50 Cloetta Annual and Sustainability Report 2024
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strategy
Market &
consumer
Sustainability
Main
markets
Share &
shareholders
Financial
performance
Risks & Corporate
Governance
Sustainability
report
Financial
reports
<< Content
Organisational chart
Marketing Operations
Finance, IT,
Communication, Legal
HR
President and CEO
Sweden
Denmark/Norway
& Pick & Mix
Finland
The Netherlands
& Germany
International
& UK
responsible for ensuring that the work of
the Board is evaluated yearly and that the
nomination committee is informed about
the results of this evaluation.
6
President and
Group Management Team
The President and CEO is appointed by the
Board. The President and CEO supervises
operations according to the instructions
adopted by the Board and is responsible for
the day-to-day management of the com-
pany and the Group, in accordance with the
Swedish Companies Act and other appli-
cable rules. In addition, the President and
CEO, together with the Chairman, decides
which matters are to be dealt with at Board
meetings. The Board regularly evaluates
the President and CEO’s duties and perfor-
mance. The President and CEO is respon-
sible for ensuring that the Board members
are supplied with the necessary information
to make decisions and presents reports
and proposals at Board meetings regarding
issues dealt with by the Group Management
Team. The President and CEO regularly
informs the Board and Chairman about the
financial position and development of the
company and the Group.
Katarina Tell has been the President and
CEO of Cloetta since 1 June 2024, Henri
de Sauvage-Nolting was the President and
CEO of Cloetta until 31 May 2024 and his
resignation was communicated by the com-
pany on 25 January 2024. Effective as of 15
August 2024, Ulrika Palm was appointed as
President Sweden. Per 31 December 2024
the Group Management Team consisted of
the five regional presidents (one also being
the Chief Pick & Mix Officer), the President
of Operations, the CFO, the CMO and the
Chief Human Resources Officer. For infor-
mation about the President and CEO and
other members of the Group Management
Team, see pages 60–61. The Group Man-
agement Team holds regular management
meetings and held twelve meetings in 2024.
The meetings are focused on the Group’s
strategic and operational development and
financial performance.
7
Auditor
The auditor is elected by the AGM to
examine the company’s annual accounts
and accounting records and the adminis-
tration of the Board of Directors and the
President and CEO. The auditor’s reporting
to the shareholders takes place at the AGM
through the presentation of the auditor’s
report. At the AGM on 9 April 2024, the
registered public accounting firm PwC was
re-appointed as the auditor for the company
for the period until the next AGM. The
authorised public accountant Sofia Götmar-
Blomstedt was elected to continue as the
Lead Audit Partner.
8
Financial and sustainability reporting
and sustainability governance
Financial and sustainability reporting
The Board of Directors is responsible for
ensuring that the company’s organisation is
structured in such a way that the company’s
financial circumstances can be controlled
satisfactorily and that external financial and
sustainability information, such as interim,
annual and sustainability reports to the
market, are prepared in accordance with
the legal requirements, applicable account-
ing standards and other requirements
applicable to listed companies.
The tasks of the Board are to oversee
the Group’s financial development, assure
the quality of the financial and sustainability
reporting and internal control and regularly
monitor and evaluate operations. The task
of the audit committee is to support the
Board in assuring the quality of the com-
pany’s financial and sustainability report-
ing. The audit committee also oversees
the financial and sustainability reports and
significant accounting matters, as well as
matters related to internal control, com-
pliance, material uncertainty in reported
values, events after the balance sheet date,
changes in estimates and judgements and
other circumstances affecting the quality of
the financial and sustainability reports.
The President and CEO ensures that
the financial accounting in the Group
companies is carried out in compliance
with legal requirements and that financial
management is conducted in a satisfactory
manner. Cloetta’s President and CEO and
the CFO are members of the boards of all
operating subsidiaries. Every month, the
Group prepares a closing of the books that
is submitted to the Board and the Group
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reports
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Management Team. For each financial year,
a profit & loss statement, cash flow state-
ment and investment budget are prepared
and are adopted at the scheduled Board
meeting in December. External information
is regularly provided in the form of:
• Interim reports;
• Annual and Sustainability report;
• Press releases about important news that
is deemed to have a potential impact on the
share price;
• Presentations for financial analysts, inves-
tors and the media on the date of publica-
tion of the year-end and interim reports;
• Meetings with financial analysts and
investors;
• External information on the Group’s
sustainability work is reported in the
sustainability reporting forming part of
the Annual Report.
Sustainability governance
The overall strategies for Cloetta’s sus-
tainability work have been adopted by the
Group Management Team and the ultimate
responsibility for sustainability matters
lies with Cloetta’s Board of Director and its
President and CEO. Cloetta’s sustainability
work is led by the CMO, who works together
with the Global Marketing Director for Sus-
tainability and the Sustainability (Reporting)
Managers. The Sustainability Manager is
the spokesperson for environmental and
social issues and is responsible for identi-
fying prioritised areas. The Sustainability
Reporting Manager is the spokesper-
son for reporting and governance issues.
Both act as the stakeholders’ link to the
Group Manage ment Team and support the
implementation of Cloetta’s sustainabil-
ity agenda. During 2024, Cloetta has also
established a Sustainability Board which
gathers director-level employees that have
close ties to daily operations to enable a
more practical and responsive forum for
sustainability matters.
The Group Head of Health & Safety,
Environment (HSE) leads the work on
health, safety and environment. All factories
have dedicated HSE managers and in the
rest of the organisation, local managers are
responsible.
Sustainability updates are provided to
the Board of Directors and its audit com-
mittee is responsible to oversee processes
and internal control relating to sustainability
reporting.
Additional information
The following information can be found at
www.cloetta.com: Articles of Association,
Cloetta’s Code of Conduct, information
from previous AGMs and corporate govern-
ance reports from previous years.
Press releases 2024
October
• Cloetta AB interim report
July–September 2024: Continued
organic growth and strengthened
profit
• Cloetta’s Nomination Committee for
the AGM 2025
September
• Cloetta puts investment in greenfield
plant on hold and initiates reassess-
ment of the plant and options
July
• Cloetta AB interim report
April–June 2024: Improved profitabil-
ity and continued organic growth
June
• Cloetta appoints Ulrika Palm as
President Cloetta Sweden
May
• Cloetta divests Nutisal brand to
further focus on core confectionary
portfolio
April
• Cloetta AB interim report
January–March 2024: Profit
protected despite historically high
cocoa price
• Decisions taken at the Annual General
Meeting of Cloetta on 9 April 2024
• Cloetta appoints Katarina Tell as
President and CEO
March
• Cloetta’s Annual and Sustainability
Report 2023 published
• Notice of the Annual General Meeting
of Cloetta AB (publ)
February
• Proposals of Cloetta AB’s Nomina-
tion Committee – Morten Falkenberg
proposed as new Chairman
January
• Cloetta AB interim report:
October–December 2023
• CEO Henri de Sauvage-Nolting to
leave Cloetta
• Cloetta appoints Laura Lindholm as
Director, IR and Communications
52 Cloetta Annual and Sustainability Report 2024
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Targets &
strategy
Market &
consumer
Sustainability
Main
markets
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shareholders
Financial
performance
Risks & Corporate
Governance
Sustainability
report
Financial
reports
<< Content
Remuneration
of the Group
Management Team
Guidelines for remuneration
of Group Management Team
The current guidelines for remuneration
of the Group Management Team were
adopted by the AGM on 4 April 2023. The
total remuneration shall be market-based
and competitive and shall be proportionate
to the individual’s responsibilities and
powers. In addition to base salary, remuner-
ation of the President and CEO, other mem-
bers of the Group Management Team and
other executives reporting directly to the
President and CEO can include: short-term
variable compensation, share-based long-
term variable compensation, pension bene-
fits, termination benefits and other benefits.
Short-term variable compensation
Short-term variable compensation is linked
to specific business targets and is derived
from the annual business plan approved
by the Board of Directors. The short-term
variable compensation is delivered through
a cash-based bonus programme. Short-
term variable compensation is based on
personal targets linked directly or indirectly
to the achievement of the financial targets
set by Cloetta’s Board of Directors.
Share-based long-term
variable compensation
Share-based long-term variable compen-
sation consists of the share-based long-
term incentive plans, which are resolved on
yearly by the AGM. It is aimed at increas-
ing value for the Group’s shareholders
by promoting and upholding the senior
management’s commitment to the Group’s
development and thereby aligning the
interests of the Group Management Team
and other key employees with those of the
shareholders to ensure maximum long-
term value creation. The targets for share-
based long-term variable compensation
are the compound annual growth rate, the
adjusted operating profit margin and the
EBIT level.
Pension benefits
Pension benefits vary depending on the
agreements and practices in the country
where the individual is employed. Defined
contribution plans are strived for, which
means that pension benefits most often
consist of defined contribution plans for
which annual premiums are paid as a per-
centage of pension-qualifying salary up to
the age of retirement. Variable salary and
benefits are not pension qualifying unless
provided by law or collective agreement.
The retirement age is not less than 60 years
and not more than 67 years.
The Board has the right to deviate from
these principles in individual cases where
there is special reason to do so.
Termination benefits
Upon termination of employment on the
part of the company, the notice period shall
be no longer than 12 months. Any termi-
nation benefits may not exceed one fixed
annual salary. Due to employment contracts
entered into by Leaf prior to Cloetta’s acqui-
sition of the company, there are contracts
with members of the Group Management
Team granting termination benefits exceed-
ing 12 monthly base salaries.
Other benefits
Other benefits consist mainly of sign-on
fees, severance pay, non-compete fees and
company car benefits.
President and CEO
The retirement age is 65 years. The pen-
sion terms consist of a defined contribution
plan for which annual premiums are paid
up to the age of retirement in an amount
corresponding to 30 per cent of pension-
qualifying salary, consisting of base salary.
Variable compensation and other benefits
are not pension-qualifying.
The President and CEO has a notice
period of six months. Upon termination on
the part of the company, the notice period is
12 months.
Remuneration in 2024
In 2024, the total remuneration of the Group
Management Team including the President
and CEO amounted to SEK 86,356 thou-
sand (80,031) including pension benefits
and SEK 78,541 thousand (71,533) exclud-
ing pension benefits.
Share-based long-term incentive
plan for senior executives
On 9 April 2024, the Annual General Meet-
ing approved the Board’s proposal for a
share-based long-term incentive plan. The
plan aligns the interests of the shareholders
with those of the Group Management Team
and other key employees in order to ensure
maximum long-term value creation.
A personal shareholding in Cloetta is
required for all participants. See page 32
and Notes 23 and 28 for more information
about share-based payment.
The Board of Directors’ report on the
remuneration committee’s evaluation
of remuneration of the Group
Management Team
The Board of Directors has established a
remuneration committee consisting of four
members who prepare recommendations
for decision by the Board regarding remu-
neration principles, remuneration levels and
other terms of employment for the Group
Management Team. The recommendations
have included the proportional distribution
between base salary and variable compen-
sation and the size of any salary increases.
Furthermore, the remuneration committee
has discussed pension terms and termina-
tion benefits.
The remuneration committee is also
entrusted with the task of monitoring and
evaluating programmes for variable remu-
neration of the Group Management Team,
application of the guidelines for remuner-
ation adopted by the AGM and the current
remuneration structures and remuneration
levels in the company. Pursuant to para-
graph 9.1, points 2 and 3 of the Swedish
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47%
3%
9%
41%
Short-term variable compensation
as a percentage of base salary
Target level Maximum level
President and CEO 50 % 100 %
Other Group Management Team, average 35 % 70 %
Total variable remuneration (costs
incurred) of the Group Management
Team incl. the President and CEO
SEK Thousand %
50,000
40,000
30,000
20,000
10,000
0
0
10000
20000
30000
40000
50000
20242023202220212020
0
30
60
90
120
150
Short-term and share-based long-term
variable compensation
Percentage of base salary
Remuneration of the Group
Management Team incl.
the President and CEO
%
47%
Base salary
41%
Short-term and
share-based
long-term variable
compensation
9%
Pension benefits
3%
Other benefits
Code of Corporate Governance, the Board
hereby presents the following report on the
results of the remuneration committee’s
evaluation:
The variable compensation that is pay-
able according to the guidelines is linked
to both the individual’s responsibility for
results and the Group’s profitability targets,
which contributes to value growth for the
company’s shareholders.
Market surveys are conducted regularly
with respect to salary statistics, remunera-
tion structures and levels for variable remu-
neration. In the opinion of the remuneration
committee, Cloetta’s remuneration struc-
tures and remuneration levels have allowed
Cloetta to recruit and retain the right per-
sonnel to the Group Management Team.
Remuneration of the President and CEO
and other members of the Group Manage-
ment Team for the financial year 2024 has
been determined by the Board. Remunera-
tion of other senior executives has been
approved by the President and CEO.
Since the 2024 AGM, the remuneration
committee has met on four occasions. The
current guidelines for remuneration to the
Group Management Team was adopted at
the AGM on 4 April 2023.
In accordance with the remuneration
guidelines, the Board may temporarily
deviate from the remuneration guidelines, in
whole or in part, if in a specific case there is
special cause for the deviation and a devi-
ation is necessary to serve the company’s
long-term interests.
For more information about remuneration
of the President and CEO, see the compa-
ny’s Remuneration Report published on the
website.
Any variable salary shall be linked,
directly or indirectly, to the achievement
of Cloetta’s long-term financial targets,
without it being necessary that the profit
for the year, or that the other financial tar-
gets, exceed the previous year’s results,
even if the starting point when deciding on
payment of variable salary shall be that the
adjusted profit for the year exceeds the
previous year’s adjusted profit.
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Remuneration cost incurred for the Group Management
2024
SEK Thousand
Base
salary
Short-term variable
compensation incurred in
the year, expected to be
paid out in the next year
Share-based
long-term variable
compensation
Other
benefits Subtotal
Pension
costs Total
Costs incurred in 2024
President and CEO
- Katarina Tell¹ 3,220 3,220 1,114 81 7,635 564 8,199
- Henri de Sauvage-Nolting¹ 4,446 4,194 -2,166 1,001 7,475 1,275 8,750
Other Group Management Team² 26,989 19,177 15,396 1,869 63,431 5,976 69,407
Total 34,655 26,591 14,344 2,951 78,541 7,815 86,356
of which, Parent Company 16,571 14,012 4,717 1,427 36,727 4,510 41,237
Amount paid in 2024
President and CEO
- Katarina Tell¹ 3,220 - - 81 3,301 564 3,865
- Henri de Sauvage-Nolting¹ 4,446 6,000 1,666 1,001 13,113 1,275 14,388
Other Group Management Team² 26,989 17,976 6,496 1,820 53,281 6,011 59,292
Total 34,655 23,976 8,162 2,902 69,695 7,850 77,545
of which, Parent Company 16,571 12,367 3,943 1,427 34,308 4,510 38,818
2023
SEK Thousand
Base
salary
Short-term variable
compensation incurred in
the year, expected to be
paid out in the next year
Share-based
long-term variable
compensation
Other
benefits Subtotal
Pension
costs Total
Costs incurred in 2023
President and CEO
- Henri de Sauvage-Nolting 6,000 6,000 2,912 87 14,999 1,800 16,799
Other Group Management Team² 26,357 17,590 11,224 1,363 56,534 6,698 63,232
Total 32,357 23,590 14,136 1,450 71,533 8,498 80,031
of which, Parent Company 14,347 12,298 7,129 422 34,196 4,304 38,500
Amount paid in 2023
President and CEO
- Henri de Sauvage-Nolting 6,000 4,959 - 87 11,046 1,800 12,846
Other Group Management Team² 26,357 14,874 - 1,363 42,594 6,698 49,292
Total 32,357 19,833 - 1,450 53,640 8,498 62,138
of which, Parent Company 14,347 10,205 - 422 24,974 4,304 29,278
1) Henri de Sauvage-Nolting resigned during 2024, with a termination date of 31 August 2024. Katarina Tell started as President and CEO on 1 June 2024.
2) Until 30 September 2023 Other Group Management Team comprised 9 persons. For the period 1 October 2023 until 31 December 2023, Other Group Managent Team comprised 10
persons, for the period 1 January 2024 until 31 May 2024 it comprised 9 persons, for the period 1 June 2024 until 14 August it comprise 8 persons and as of 15 August 2024 the Other
Group Management Team comprised 9 persons.
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Internal control over
financial reporting
The Board has overall responsibility for the
financial and sustainability reporting and
the company’s systems pertaining to inter-
nal control. The responsibility is regulated
by the Swedish Companies Act, which also
states that the audit committee has a spe-
cific responsibility for monitoring quality
assurance in risk management and internal
control over the financial reporting.
Cloetta’s internal control over financial
reporting is based on the framework pub-
lished by the Committee of Sponsoring
Organisations of the Treadway Commission
(COSO framework). The COSO framework
objectives are divided into three distinct
disciplines: operations, reporting and
compliance, and consists of five individual
areas: control environment, risk assess-
ment, control activities, information and
communication, and monitoring.
Control environment
The control environment comprises the
organisational structure and the values,
policies, instructions and similar, according
to which the organisation works. It forms the
basis of good internal control and involves
creating the necessary conditions for an
organisational structure with clear roles
and responsibilities, leading to effective
management of the risks in the operation.
The Board of Directors is responsible
for establishing fundamental rules and
guidelines for internal control. The audit
committee assists the Board of Directors
with its oversight of the performance of the
company’s risk management function and
internal control insofar as these affect the
company’s quality and integrity of financial
reporting. The Board of Directors and the
audit committee interact directly with the
external auditors.
Where the Board of Directors is respon-
sible for establishing fundamental rules
and guidelines, the President and CEO is
responsible for the design effectiveness,
implementation and supervision of
monitoring of the internal control within
the Group. The CFO is responsible for the
design and operating effectiveness of the
internal control environment within the
Group.
The Group Management Team and local
management teams ensure that the group
has employees with the right competency in
all key financial positions and that there are
procedures in place to ensure that employ-
ees in key financial positions have the
requisite knowledge and skills.
Risk assessment
Central and local risk assessments cover-
ing both financial and other risks are pre-
pared and form the basis for how risks are
managed through various controls. These
assessments comprise the likelihood that
risks could occur and the potential impact
they may have. In addition, the velocity at
which a risk could occur is considered.
Central and local financial reporting risks
are assessed with respect to account
balance assertions such as existence, com-
pleteness, rights and obligations, valuation
and allocation, presentation and disclosure
and financial impact. The internal control
environ ment is designed to mitigate risks
identified to a level considered acceptable
by management.
Certain specific risks, for example risks
related to taxes and legal matters and other
financial risks, are reviewed proactively on a
periodic basis. Risks and risk management
are reported on separately in more detail
in the Annual and Sustainability report, on
pages 40–44. Tax, legal and other financial
risks are reflected based on management’s
best estimate and judgement and in
accordance with the applicable account-
ing standards in the consolidated financial
statements.
Fraud risk
Cloetta’s Group Management Team, local
management teams and the central finance
team are responsible for addressing the
risk of fraud and for carrying out a contin-
uous assessment of the risk for fraud with
respect to the prevailing attitudes, incen-
tives and opportunities to commit fraud.
The Board of Directors has issued a fraud
policy and a whistleblower policy aimed
at preventing dishonest and/or fraudulent
activity and to establish procedures for
reporting fraudulent activities to Cloetta’s
management and audit committee.
In addition to these policies, Cloetta
has adopted an anti-bribery and anti-
corruption policy. The purpose of the policy
is to prevent bribery and corruption by any
employee or third party acting on behalf of
Cloetta. The trade controls policy summa-
rises potentially applicable sanctions and
export control rules and compliance proce-
dures to be followed by all Cloetta employ-
ees. The purpose of this policy is to provide
guidelines to ensure compliance with all
local trade control laws and regulations
including countries through which ship-
ments or financial transactions flow.
Basis for financial reporting risk assessment
Existence:
Reported
assets and lia-
bilities exist on
the reporting
date.
Completeness:
All transactions
during the
reporting period
are recorded and
reported.
Rights and obligations:
Assets are the rights
of the organisation
and the liabilities are
its obligations as of a
given date.
Valuation and allocation:
All items in the financial reporting
are reported in compliance with
IFRS valuation principles and are
correctly calculated and summa-
rised and appropriately recorded.
Presentation and
disclosure: Items
in the financial
reports are prop-
erly described,
sorted and clas-
sified.
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Control activities
Control activities reduce the risks identi-
fied to ensure accurate and reliable finan-
cial reporting as well as process efficiency.
Control activities occur throughout the
organisation, at all levels and in all functions.
They are embedded in business process
and include a range of activities as diverse
as approvals, authorisations, verifications,
reconciliations, reviews of operating perfor-
mance, security of assets and segregation
of duties. The controls contain a balanced
mix of preventive and detective controls
and of automated and manual controls. In
addition to a standard set of automated
controls in Cloetta’s central systems, local
management teams are encouraged to
automate controls insofar possible and
efficient, especially for routine transactions.
Nevertheless, there are also manual control
activities in place to verify that the auto-
mated controls function as intended and to
validate non-routine transactions. All identi-
fied financial reporting risks are covered by
one or more control activities.
Cloetta has a systematic and structured
process in place for dealing with reporting
whereby periodically reported financial
results from a local level is reviewed by the
Group Management Team. This reporting
process serves as the basis for Cloetta’s
internal and external reporting as well as
for legal and business reviews. The busi-
ness reviews, conducted for each business
area, are carried out periodically accord-
ing to a structure in which sales, earnings,
cash flow and other key ratios and trends
of importance to the Group are compiled
and form a basis for analysis and actions by
management. Other important and group-
wide components of internal control and
reporting routines include the annual busi-
ness planning process and the monthly and
quarterly forecasting cycles.
The company’s financial situation is dis-
cussed at each Board of Directors meeting.
The Board’s audit committee has important
monitoring and control duties regarding loans,
investments, financial management, financial
reporting and internal control. The audit com-
mittee and Board of Directors review and for-
mally approve interim reports and the Annual
and Sustainability Report prior to publication.
In addition, the audit committee receives
regular reports from the independent auditor
addressing amongst others financial report-
ing, IT and internal control matters.
Information and communication
Effective communication ensures the
information flows in the organisation. Sig-
nificant policies, guidelines, instructions
and manuals that are important to internal
control are regularly updated and made
available on the intranet. There are both
formal and informal information channels to
Group management from employees. For
external communication, there is a policy in
place setting out the requirement to provide
external stakeholders with correct and
relevant information in a timely manner.
Monitoring of internal control
Cloetta continuously strengthens its inter-
nal control environment by evaluating the
design and operating effectiveness of the
environment. Annually, procedures are per-
formed to verify the design and operating
effectiveness in specific areas and relevant
control documents are reviewed. Internal
control deficiencies detected through the
ongoing monitoring activities or separate
evaluations are reported upstream and
corrective actions are taken to ensure con-
tinuous improvement of the internal con-
trol environment. Weaknesses identified
internally or by the auditor are reported and
discussed with the persons involved, with
members of Cloetta’s Group Management
Team and where needed with the audit
committee.
Evaluation of the need for a separate
internal audit function
There is currently no internal audit function
at Cloetta. The Board of Directors has
reviewed this matter and determined that
the existing structures for monitoring and
evaluation provide a satisfactory basis for
control. For certain special internal audit
activities, external resources may be used.
Process for financial reporting
Monthly Quarterly
Collection of information
Local units report monthly according
to an established timeframe in com-
pliance with the applicable laws, regu-
lations and accounting practices and
the Group’s accounting manual.
Audit committee
The auditor attends every quarterly
audit committee meeting. Possible
actions are carried out based on
the auditors reporting to the audit
committee.
Controls
The Group’s reporting system con-
tains embedded controls. In addition,
the central finance team carries out
analytical controls as well as controls
of completeness and reasonability.
External reporting
Cloetta publicly discloses its interim
and year-end reports through press
releases and publication on the
company’s website.
Processing and consolidation
Any corrections are implemented in
dialogue with the affected parties.
Reconciliation occurs.
Reporting
Reporting of operational and financial
information to the Board of Directors
and the Group Management Team.
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Board of Directors
Patrick Bergander
Position: Member of the Board
Chairman of the Audit Committee
Elected: 2019
Year of birth: 1971
Nationality: Swedish
Education: B.Sc. Business and Economics,
Stockholm University.
Other assignments: CEO of Nordic Tyre Group and
Board member of SPP Pension & Försäkring AB.
Previous assignments: CFO of Rosti Group, CEO
and CFO RSA Scandinavia (Codan/Trygg-Hansa),
several positions at Electrolux, including CFO Asia
Pacific and Head of Group Business Control. CFO,
Business area Private at If Skadeförsäkring and
Consultant and Auditor at Arthur Andersen.
Independence:
In relation to major shareholders: Yes
In relation to the company and management: Yes
Shareholding: Direct: 4,180 class B shares
Related parties: –
Camilla Svenfelt
Position: Member of the Board
Member of the Audit Committee
Elected: 2016
Year of birth: 1981
Nationality: Swedish
Education: Bachelor of Science in Social Work and
courses in business administration, labour market
economics and management, Stockholm University.
Other assignments: Board member of AB Malfors
Promotor, deputy board member of the Hjalmar
Svenfelt Foundation and Accounting supervisor at
AB Malfors Promotor.
Previous assignments: –
Independence:
In relation to major shareholders: No
In relation to the company and management: Yes
Shareholding: Class A shares, Direct: 60
Related parties: 5,729,569
Class B shares, Direct: 512,485
Related parties: 88,794,068
Morten Falkenberg
Position: Chairman of the Board
Member of the Remuneration Committee
Elected: 2024
Born: 1958
Nationality: Danish
Education: B.Sc., Copenhagen Business School
Other assignments: Board member of Ansell och
Duni Group
Previous assignments: CEO and Group CEO of
Nobia from 2010 to 2019. Previously held senior posi-
tions at both divisional and group management levels
within Electrolux, Tele Denmark and Coca-Cola.
Independence:
In relation to major shareholders: Yes
In relation to the company and management: Yes
Shareholding: Direct: 400,000 class B shares
Related parties: –
Pauline Lindwall
Position: Member of the Board
Chairman of the Remuneration Committee
Elected: 2023
Year of birth: 1961
Nationality: Swedish
Education: M.Sc. (Econ), Växjö University.
Other assignments: Board member of Huhtamaki
Finland and European Institute of Innovation & Tech-
nology (EIT) Food.
Previous assignments: Board member of Duni AB,
Swedish Match AB, McKesson Europe AG and
Lantmännen. Senior Advisor of Stora Enso AB.
Independence:
In relation to major shareholders: Yes
In relation to the company and management: Yes
Shareholding: Direct: 11,261 class B shares
Related parties: –
Malin Jennerholm
Position: Member of the Board
Member of the Audit Committee
Elected: 2022
Year of birth: 1970
Nationality: Swedish
Education: B.Sc. in Business Administration and
Economics from School of Business, Economics and
Law at the University of Gothenburg.
Other assignments: CEO Svenska Retursystem AB.
Previous assignments: Board member of Livs-
medelsföretagen, Board member of Sweden Food
Arena, CEO at Orkla Confectionery & Snacks
Sweden, General Manager Professional Nordics
at Jacobs Douwe Egberts and various positions at
Mondelez International and Kraft Foods.
Independence:
In relation to major shareholders: Yes
In relation to the company and management: Yes
Shareholding: Direct: 7,000 class B shares
Related parties: –
Alan McLean Raleigh
Position: Member of the Board
Member of the Remuneration Committee
Elected: 2018
Year of birth: 1959
Nationality: British
Education: B.Sc. (Hons) Production Engineering and
Production Management, University of Strathclyde.
Other assignments: Board Chairman of Robinson plc.
Previous assignments: Trustee on the Board of
the Chartered Institute of Procurement and Supply
(CIPS), Executive Vice President, Personal Care
Supply Chain, Unilever.
Independence:
In relation to major shareholders: Yes
In relation to the company and management: Yes
Shareholding: Direct: 8,144 class B shares
Related parties: –
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Mikael Svenfelt
Position: Member of the Board
Member of the Remuneration Committee
Elected: 2008
Year of birth: 1966
Nationality: Swedish
Education: Marketing and Business Economics,
Tibbleskolan and Law studies, Folkuniversitetet.
Other assignments: CEO and Board member of AB
Malfors Promotor.
Previous assignments: Senior positions in Nicator
Group, Dell Financial Services, GE Capital Equipment
Finance AB and Rollox AB, Board Chairman of
Fjärilshuset Haga Trädgård AB, Board member of
Fjärilshuset Haga Trädgård Café AB.
Independence:
In relation to major shareholders: No
In relation to the company and management: Yes
Shareholding: Class A shares, Direct: 25
Related parties: 5,729,569
Class B shares, Direct: 47,535
Related parties: 88,699,973
Lena Grönedal
Position: Employee board member, LIVS
Elected: 2008
Year of birth: 1962
Nationality: Swedish
Position at Cloetta: Factory Operative, Cloetta
Sverige AB.
Shareholding: Direct: –
Related parties: –
Shareholding stated as at 31 December 2024
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Group Management Team
Thomas Biesterfeldt
Position: Chief Marketing Officer (CM0) Marketing,
Innovation and Sustainability since 2018
Employed by Cloetta since 2018
Year of birth: 1980
Nationality: German
Education: MBA (Major Marketing), Hamburg
University of Applied Sciences.
Other assignments: –
Previous positions: Marketing Director at L’Oréal
Paris in the Nordics (based in Denmark), previously
Marketing and Group product manager at L’Oréal
Paris in Germany and Sweden.
Shareholding: Direct: 65,676 class B shares
Related parties: –
Marcel Mensink
Position: President Operations (COO) since 2017
Employed by Cloetta since 2017
Year of birth: 1971
Nationality: Dutch
Education: MBA University of Canterbury and B.Sc.
Food Technology, van Hall Institute.
Other assignments: –
Previous positions: Supply Director, Mars Supply
Petcare Europe. Several leading positions at Mars
in various business units, including Petcare, Food
and Chocolate, Supply Director Mars Care & Treats
Europe, Plant director Mars Food UK, several
different operational roles at Mars Chocolate.
Shareholding: Direct: 60,086 class B shares
Related parties: –
Katarina Tell
Position: President and CEO since 1 June 2024
Employed by Cloetta since 2018
Year of birth: 1970
Nationality: Swedish
Education: M.Sc. Food & Nutrition, Umeå University
and studies in business administration, Lund
University.
Other assignments: Board member of Svensk Plast-
industri i Motala and DLF, Dagligvaruleverantörernas
Förbund.
Previous positions: President Cloetta Sweden,
General Manager Findus, Sweden. Managing Direc-
tor Heinz Northern and Eastern Europe, Retail Sales
Manager Heinz Sweden and Business development
Findus.
Shareholding: Direct: 161,801 class B shares
Related parties: –
Ewald Frenay
Position: CHRO since 2023
Employed by Cloetta since 2000 (through acquired
company LEAF)
Year of birth: 1963
Nationality: Dutch
Education: M.Sc. Economics, Erasmus University.
Other assignments: –
Previous positions: Area President Cloetta Middle
2012-2023, Interim President Cloetta Italy and Export
Markets 2016–2017. Various positions at
LEAF 2000–2012 including President Middle at
LEAF and Chief Marketing Officer. Member of LEAF
Executive Committee 2008–2012. Vice President
Segment Sugar confectionery at CSM 2005–2007,
Marketing Director at CSM 2004-2005 and
Marketing Director of RBV LEAF the Netherlands
2000–2004. Several marketing and sales positions
at Mars Inc. 1989–1999.
Shareholding: Direct: 54,434 class B shares
Related parties: –
Frans Rydén
Position: Chief Financial Officer (CFO) since 2018
Employed by Cloetta since 2018
Year of birth: 1972
Nationality: Swedish
Education: B.Sc. Business Administration and
Degree of Master of Laws, LL.M, Stockholm
University.
Other assignments: –
Previous positions: Various finance positions in
Mondelez such as chief financial officer for India and
for Indonesia, Finance Director ZBB Asia-Pacific,
Regional Manager Financial Planning and Analysis
and Area Manager Internal Controls. Vice President
Finance at Arla Foods.
Shareholding: Direct: 162,932 class B shares
Related parties: –
Michiel Havermans
Position: Senior Vice President Cloetta International
since 2018
Employed by Cloetta since 2018
Year of birth: 1973
Nationality: Dutch
Education: M.Sc. Economics, Erasmus University.
Other assignments: –
Previous positions: Regional Director sales and
marketing for Europe, Middle East and Americas
at United Dutch Breweries (UDB), Export Director,
Country Manager UK and Managing Director
Vietnam and the Philippines at Perfetti van Melle.
Shareholding: Direct: 24,041 class B shares
Related parties: –
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Niklas Truedsson
Position: President Cloetta Denmark, Norway and
Chief Pick & Mix Officer since 2021
Employed by Cloetta since 2019
Year of birth: 1972
Nationality: Swedish
Education: M.Sc. Business Administration and
Economics, Lund University.
Other assignments: –
Previous positions: Various managerial roles at
Unilever in the Nordics and Asia including Country
Manager Sweden, CEO at Risenta, part of the
Paulig Group.
Shareholding: Direct: 57,031 class B shares
Related parties: –
Ulrika Palm
Position: President Sweden since 15 August 2024
Employed by Cloetta since 2024
Year of birth: 1973
Nationality: Swedish
Education: Master of Business and Administration
from the School of Business, Economics and Law at
the University of Gothenburg.
Other assignments: Board member of Board
Member of GS1 Sweden and DLF (Trade Association
of Sweden).
Shareholding: Direct: 3,300 class B shares
Related parties: –
Ville Perho
Position: President Finland since 2015
Employed by Cloetta since 2004 (through acquired
company LEAF)
Year of birth: 1979
Nationality: Finnish
Education: M.Sc. Turku School of Economics.
Other assignments: Co-owner and Board member
of Varastoaura Oy, Chairman of Finnish Chocolate,
Sugar Confectionery and Biscuit Industries’
Association.
Previous positions: Sales Director Cloetta Finland
2010–2015, Category Development Manager LEAF
2004–2010, Global Account Manager Lidl at LEAF
2007–2009.
Shareholding: Direct: 85,447 class B shares
Related parties: –
André Ruikes
Position: President Middle since 2023
Employed by Cloetta since 2010 (through acquired
company LEAF)
Year of birth: 1985
Nationality: Dutch
Education: Bachelor Business Administration and
Master Marketing Management, Erasmus University
Rotterdam, the Netherlands.
Other assignments: –
Previous positions: Different positions in Cloetta
such as Customer Director 2019–2023, Customer
Marketing Director 2015–2019, Sr. Account Manager
2012-2015 and Brand Manager 2010–2012.
Shareholding: Direct: 10,632 class B shares
Related parties: –
Changes in the
Group Management Team
On 17 January 2025, Cloetta shared that
Marcel Mensink, President Operations and
COO, will leave Cloetta and its Group Man-
agement Team in the middle of April 2025.
On 19 June 2024, Cloetta appointed Ulrika
Palm as Katarina Tell’s successor as
President Sweden, effective in autumn 2024
at the latest.
On 25 January 2024 Cloetta shared that CEO
Henri de Sauvage-Nolting had informed that
he wishes to resign from his position. On 4
April 2024 Cloetta appointed Katarina Tell
President and CEO, which became effective
as from 1 June 2024.
Shareholding stated as at 31 December 2024
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strategy
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Main
markets
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performance
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Financial
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Content
General information 63
Basis for preparation 63
Material sustainability matters 67
Interaction with business model
and strategy
69
Sustainability governance 72
Environmental information 74
Climate change 74
EU taxonomy 80
Biodiversity and ecosystems 86
Resource use and circular economy 88
Social information 92
Own workforce
Workers in the value chain
92
98
Consumers and end-users 101
Governance information 104
Business Conduct 104
The sustainability report outlines Cloetta’s governance
and performance concerning key sustainability issues,
including detailed performance indicators and metrics.
Sustainability
report
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General information
Basis for preparation
As of the financial year 2024, Cloetta AB
(publ) sustainability report is prepared with
inspiration of the new EU legislation Cor-
porate Sustainability Reporting Directive
(CSRD) and the European Sustainability
Reporting Standards (ESRS). To give a
fair picture of our operations, our ambition
has been to implement the reporting stand-
ards to the extent possible for the finan-
cial year 2024. The sustainability report is
excluded from the management report for
2024, as it is inspired by the ESRS stand-
ards but does not yet fully align with them.
Cloetta is preparing to meet the CSRD
requirements for 2025, at which point the
sustainability report will be integrated into
the management report in accordance
with the legislation. Cloetta’s annual stat-
utory sustainability report is prepared in
accordance with Chapter 6, Section 10
of the Swedish Annual Accounts Act, as
described on page 39 of the management
report. Cloetta’s sustainability report is also
prepared in accordance with the Norwegian
Transparency Act 2021 and other relevant
regulations. Disclosures required by the
Norwegian Transparency Act are provided
in chapters on “Human Rights,” “Own Work-
force,” and “Workers in the Value Chain”.
Consolidation
The data is consolidated according to the
same principles as the financial statements,
meaning it includes the parent company,
Cloetta AB (publ), and its controlled subsid-
iaries. The sustainability report covers the
entire business operations of the company,
unless otherwise noted. This approach
to consolidating information is consistent
across all disclosures and material topics.
Accounting principles
We collect and verify data systematically
across all key sustainability metrics, inte-
grating this information into our non-financial
reporting processes. Sustainability data is
internally reviewed and approved before
data is entered into the report, ensuring
central oversight and control. To reduce the
risks associated with manual data entry,
a quality control process is used, ensuring
that at least two people review and verify
the data before approval. Where necessary,
external audits are conducted to validate the
accuracy, completeness, and reliability of
the reported data. Cloetta’s reporting struc-
tures and calculations are evaluated annu-
ally to ensure they reflect real conditions as
accurately as possible.
A primary risk in sustainability reporting
is that data may be reported inaccurately or
not consolidated correctly. Some reported
data points, such as taxonomy KPIs and
scope 3 emissions, rely on assessments
and estimates. Climate data is generally
associated with some uncertainty due to
different measurement methods and data
quality. We use well established methods
and frameworks, such as the Greenhouse
Gas Protocol (GHG protocol), for calcu-
lating our greenhouse gas emissions. Any
changes to these estimates are recognised
in the period they are updated. Informed
judgments are applied when implementing
accounting policies. This includes making
decisions about how data is calculated,
presented, or classified based on the spe-
cific context. Details of these estimates and
assumptions are available in the following
quantitative environmental, social, and
governance (ESG) data sections.
Reporting changes and
prior reporting errors
For Cloetta’s 2024 sustainability disclo-
sures, reporting has transitioned from the
Global Reporting Initiative (GRI) to an initial
alignment with ESRS requirements. Key
changes include an updated materiality
assessment, a restructured sustainabil-
ity report, and reporting on ESRS topical
standards. All data points included in the
sustainability sections have been assessed
as material according to Cloetta’s double
materiality assessment. No major errors
from previous reports were found, but some
corrections to waste and climate data have
been made, affecting historical records
and leading to revised figures in this year’s
report. Such corrections are described in
the respective disclosures.
External review
Selected disclosures from ESRS are
covered by review (limited assurance)
performed by the company’s auditor PwC.
Please see the auditor’s limited assurance
report on page 107–109. The latest sustain-
ability report was issued on March 11,
2024. Questions about Cloetta’s sustain-
ability report can be directed to:
sustainability@cloetta.com.
Strategy, business model
and value chain
Creating value through 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 three pillars represent
our most important areas in our business
and value chain where we have the ability
and the responsibility to create a positive
impact. Sustainability is integrated into the
core of our business, our mission connects
to Cloetta’s purpose, and the progress of
our initiatives raises our ambition to create
a sweeter future. Our sustainability efforts
create value by enhancing our brand image,
driving consumer preference, ensuring sup-
ply chain stability, and preparing our com-
pany for future regulatory requirements. By
embedding sustainability into our business
strategy, we not only contribute to a health-
ier planet and society but also secure our
long-term success and profitability.
Our business
Cloetta’s business model focuses on
producing and marketing confectionery
products, targeting both branded con-
sumer goods and the Pick & mix segment.
Our offerings include products like Läkerol,
CandyKing, Jenkki, Kexchoklad, Malaco,
Sportlife, and Red Band. We operate in key
European markets, including Sweden, Fin-
land, the Netherlands, Denmark, Norway, the
UK, and Germany, as well as selected inter-
national markets. Cloetta’s plants are located
in multiple countries, supporting our exten-
sive product portfolio. Read more about our
business model and strategy on pages 10–11
and 18–23, our markets on pages 12–13 and
24–28, and our consumers on pages 14–16.
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Our value chain
Activities Stakeholders
UpstreamOwn operationsDownstream
Transport
Resource
extraction
Manufacturing,
processing and
packaging
Waste
management
Distribution
and retailing
Consumption
Recycling
Research and
development
Sales and
marketing
Procurement of
raw material
Environmental
Environmental
Environmental
Social
Social
Social
Farming
Local
communities
Industry
partners
Universities
and research
institutions
Authorities
Local
communities
Suppliers
Consumers
Own
workforce
Farmers
NGO's
Suppliers
Transport
1
7
4
1
6
4
3
6
3
2
5
2
5
4
1
1
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Environmental
1
Natural resources exploitation
and land-use change
2
Deforestation
3
Biodiversity/Habitat loss
4
Greenhouse gas emissions
5
Energy consumption
6
Waste generation during operation
7
Waste generation from packaging/
non-recyclable packaging waste,
food waste
Social
1
Working conditions
2
Fair wages
3
Child and forced labour
4
Worker safety
5
Labour conditions
6
Health and nutrition impacts
Environmental
1
Increased operational costs
Social
1
Health and safety incidents –
productivity loss and brand impact
Negative impact Risks
Cloetta’s value chain encompasses the full
lifecycle of confectionery products and is
structured into upstream, own operations,
and downstream stages. Each stage plays a
vital role in delivering high-quality products
while addressing material sustainability
impacts, risks, and opportunities.
In the upstream stage, activities include
the farming and resource extraction of
our raw materials, as well as their growing,
harvesting, and refining or processing.
This stage also involves the trade and
transportation of these raw materials to
Cloetta’s manufacturing facilities.
Own operations encompass procure-
ment, manufacturing, processing, and
packaging activities. Raw materials are
sourced and transformed into confection-
ery products at Cloetta’s facilities under
strict food safety and quality control stand-
ards. Packaging is designed to protect
products while minimising environmental
impact. Innovation, design, and develop-
ment play key roles in enhancing product
value and addressing customer needs,
while marketing ensures the effective
communication of product benefits.
The downstream stage involves the
distribution of finished products to retailers
and consumers through various sales chan-
nels. This stage includes product consump-
tion, with efforts to promote recycling to
minimise waste and environmental impact.
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Our engagement with stakeholders
Stakeholder engagement is an ongo-
ing process integrated into our strategic
and operational activities. We collaborate
with stakeholders at all levels, globally
and locally, to build trust and gain insights
that inform our business decisions. This
engagement helps us anticipate market
trends, innovate, and align actions with the
needs of our consumers, suppliers, and
communities, ultimately driving our sustain-
ability goals and creating value. Ongoing
stakeholder dialogue has been maintained
throughout the year, complemented by a
dedicated stakeholder dialogue as part of
the double materiality analysis . Insights
from stakeholder engagements are sys-
tematically reviewed and communicated to
relevant parties. When these insights influ-
ence Cloetta’s strategic direction or oper-
ational priorities, they are shared with the
Group Management team and the Board of
Directors to ensure alignment with stake-
holder expectations.
Stakeholder Key issues – sustainability Communication and cooperation
Customers and
consumers
•
Responsible Marketing
• Food safety and product transparency
• Less and Better Packaging
• Climate action
• Clear labeling, certifications
• Cloetta’s website, social media
• Customer and sales meetings three times per year (in-person or
online), and via customer surveys and collaborative initiatives for
e.g. eco-efficient transportation
Employees,
Board &
Management
•
Competence development
• Health and safety, employee well-being
• Equality & diversity in the workplace
• Ethics and anti-corruption
• Climate action
• Long-term sustainable value growth
• Daily meetings to discuss occupational health and safety in the
factories
• Annual performance reviews with all employees
• Systematic skills development
• Up-to-date information provided monthly, e.g. via managers, union
representatives and Cloetta’s intranet
• Employee survey “Cloetta Engagement survey” every other year
Workers in
the value chain
•
Human & labour rights in the supply chain
• Transparency & risk management
• Ethics and anti-corruption
• Annual audits by certification bodies for ISO, RSPO and
Rainforest Alliance
• Supplier sustainability questionnaires
• Collaboration with suppliers and third-party organisations
• Development projects
Shareholders
and investors
•
Long-term sustainable value growth
• Transparency & risk management
• Ethics and anti-corruption
• Climate action
• Human & labour rights in the supply chain
• Analyst and investor meetings
• Interim reports
• Annual general meeting
• Annual and Sustainability Report
• Cloetta’s website
Suppliers
•
Food safety
• Climate action
• Human & labour rights in the supply chain
• Biodiversity impact from key raw materials
• Ethics and anti-corruption
• Less and Better Packaging
• Annual evaluation of suppliers’ performance
• Audits
• Development projects
• Collaborative projects for sustainability
Communities
and the public
•
Transparency
• Community involvement
• Climate action
• Human & labour rights in the supply chain
• Continuous contact with the local communities/municipalities
close to Cloetta’s factories with regard to the local environment
• Annual audits by certification bodies for ISO, BRC, RSPO and
Rainforest Alliance
• Continuous contact with key opinion leaders
Regulatory
authorities
•
Legal and regulatory compliance • Continuous contact with public authorities in areas related to
workplace health and safety, environmental and product
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Material sustainability matters
During 2024, Cloetta’s double materiality
assessment was finalised, assessing both
the impact on environment and people,
and the financial effects of sustainability
risks and opportunities. This approach is
required under the European Sustainability
Reporting Standards (ESRS) as part of the
new EU Corporate Sustainability Reporting
Directive (CSRD). Our updated process
reflects these requirements, incorporating
a financial assessment and a more thorough
evaluation of our value chain.
The double materiality assessment is a
central component of Cloetta’s sustaina-
bility strategy, guiding us in identifying and
prioritising the environmental, social, and
governance issues that are most material
for our business and stakeholders. This
process enables us to align our sustaina-
bility efforts with our core values and busi-
ness objectives, ensuring that we focus on
areas where we can make the most signif-
icant impact. The outcome of the double
materiality assessment is integrated into
our sustainability agenda, which reflects
our commitment to providing high- quality
products, supporting the well-being of
people involved in our value chain, and min-
imising our environmental footprint. This
is also reflected in our external reporting
and serves as the basis for the content of
the sustainability report. The process and
outcome was reviewed and approved by
Cloetta’s Group Management Team and the
Board of Directors during 2024, to ensure
alignment with the company’s strategic
priorities and sustainability commitments.
Double materiality
assessment methodology
Background
Material issues for Cloetta are those topics
that represent significant environmental,
social, and governance (ESG) impacts, as
well as risks and opportunities that shape
stakeholder perceptions of our perfor-
mance and affect our capacity to create and
sustain value. These issues become mate-
rial when they are critical to our business
strategy and management of non- financial
matters. Cloetta’s double materiality
assessment considers impacts arising both
from its own operations and its business
relationships throughout the value chain.
Process
In collaboration with external consultants,
Cloetta identified material sustainability
topics by analysing internal and publicly
available documents, interviewing internal
experts and external stakeholders, and
conducting workshops involving Group
Management Team. Our assessment
focused on specific activities, business
relationships, and other factors that may
pose an increased risk of adverse impacts.
In particular, we examined the upstream
value chain, including raw material sourcing
and exposure to high-risk geographies,
where human and labour rights, environ-
mental impacts, and business ethics risks
may be more prevalent due to the nature of
our industry. The assessment was based
on industry-wide value chain assessments,
sector expertise, and internal insights
gained through participation in various
forums. We also assessed the connections
between our impacts and the potential
financial risks or opportunities they may
generate by evaluating whether each
specific impact leads to a financial risk
or opportunity. This thorough process
ensured that all potentially relevant issues
are covered and validated, ensuring a com-
plete and accurate assessment of material
sustainability issues across the business.
Assessment of impact materiality
and financial materiality
Impact Materiality is evaluated based on
whether Cloetta’s impact on a material
topic is positive and/or negative, as well as
whether the impact is actual or potential.
Negative impacts are assessed based on
severity, which includes scale, scope, and
irremediability, along with likelihood (for
potential impacts). For potential negative
human rights impacts, severity takes prece-
dence over likelihood. Positive impacts are
evaluated based on scale, scope, and likeli-
hood. The reasoning and scoring (0-5) are
based on stakeholder dialogue, primarily
through in-depth interviews. Financial
materiality is assessed by determining
whether a topic presents a risk and/or an
opportunity for Cloetta, as well as likelihood
and potential magnitude. Scoring (0–5)
considers the magnitude of the financial
effect and the likelihood over the short,
medium, and long term.
In collaboration with the Group Manage-
ment Team, Cloetta’s sustainability team
and external consultants established suita-
ble thresholds to determine material topics.
Any topics with a score above the threshold
of 3 were deemed material and included in
the reporting scope, while those below the
thresholds were excluded.
Double materiality assessment outcome
Impact materiality
Financial materiality Double materiality
Non-material
E
Climate change
S
Own workforce
G
Business conduct
E
Biodiversity and ecosystems
E
Resource use and circular economy
S
Workers in the value chain
S
Consumers and end-users
E
Pollution
E
Water and marine resources
S
Affected communities
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Process for double materiality
The following steps were conducted:
1
Scope Definition and Key Sustainability
Issues: We started by defining the scope
and objectives of our assessment, focusing
on key parts of the value chain and relevant
sustainability issues. Objectives were aligned
with our strategic goals and stakeholder
expectations. We then identified and catego-
rised potential sustainability issues through
stakeholder engagement, industry research,
regulatory requirements, and past perfor-
mance analysis.
2
Engage Stakeholders: Through continuous
stakeholder dialogues, including employees,
consumers, business partners, non-govern-
mental organisations (NGOs) and investors
we gathered insights on their concerns and
expectations. These interactions helped us
identify significant issues from both sustaina-
bility and financial perspectives.
3
Assess Impact Materiality: We evaluated how
our operations affect the environment and
society by analysing the scale, scope, and
potential irreversibility of impacts and if the
impact is actual or potential.
4
Assess Financial Materiality: We analysed
how sustainability issues impact our financial
performance, evaluating potential risks and
opportunities related to regulatory changes,
market trends, operational disruptions, and
financial costs or savings. We also considered
dependencies on access to natural and social
resources. This assessment focused on how
these factors could affect our profitability,
strategy, and long-term value.
5
Prioritise Issues: Based on the assessments,
we prioritised the sustainability issues by their
significance, to determine the most critical
areas. This prioritisation helped us focus
efforts on the most significant issues.
6
Develop and Implement Strategies: We formu-
lated strategies and action plans to address
the prioritised issues, setting targets, devel-
oping policies, and implementing initiatives to
manage and mitigate risks while enhancing
opportunities.
7
Monitor and follow up: Our double materiality
assessment is an ongoing process, regularly
updated to reflect changes in our business and
stakeholder expectations. This continuous
improvement ensures our sustainability strat-
egy stays relevant in addressing key impacts,
risks and opportunities. Material topics are
reviewed annually by internal experts, with a
reassessment occurring every three years
alongside updates to Cloetta´s long-term
sustainability strategy.
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Interaction with Strategy and Business Model
Cloetta’s sustainability strategy is integrated
with its overall business model and long-
term strategic goals. We recognise that
addressing sustainability challenges, such
as climate change, resource efficiency, and
human rights, is critical to maintaining its
market position, ensuring compliance, and
creating long-term value for stakeholders.
For example, investments in reducing green-
house gas emissions and improving energy
efficiency not only align with Cloetta’s cli-
mate targets but also drive operational cost
savings and enhance resilience in the face
of rising energy prices. Similarly, the focus
on sustainable sourcing practices strength-
ens supplier relationships, mitigates impacts
and risks related to supply chain disruptions.
It also aligns with the growing consumer
demand for responsibly produced products.
Cloetta’s sustainability initiatives are embed-
ded into key decision-making processes
across all business functions. The Board of
Directors and Group Management Team
oversee the alignment of sustainability pri-
orities with strategic objectives, ensuring
that material sustainability impacts, risks and
opportunities are identified, managed, and
leveraged to support growth.
Material
Topic Sub-topic
Material
impact or risk Description Mitigation
E
Climate
change
Climate change
mitigation
Negative impact Biodiversity loss and shortages of raw
materials due to extreme weather events,
rising temperatures and shifting eco-
systems impacting supply chains, damage
facilities and availability of raw materials
• Reducing emissions across the value chain
in alignment with science-based targets.
• Incorporating climate mitigation strategies
into sourcing practices, such as reducing
emissions from animal-based products
through vegan options.
• Ensuring sustainable and deforestation-
free practices by using certified raw
materials like cocoa and palm oil.
Risk Increased costs may arise due to invest-
ments in climate mitigation measures, such
as renewable energy, sustainable sourcing,
and energy-efficient upgrades.
• Collaborate with suppliers and peers for
shared costs and innovation.
• Waste reduction through facility upgrades,
circular economy principles and optimised
logistics.
Risk Production and supply chain disruptions,
including energy shortages, raw material
scarcities, or extreme weather, could stop
operations, delay deliveries, and harm the
company’s performance and reputation.
• Monitor sourcing and delivery processes
for disruptions.
• Protective protocols ensure safe work-
place and limit negative impacts.
Risk Regulatory risks, including fines, taxes, or
restrictions on operations.
• Monitor and adapt to climate regulations.
• Follow science-based targets to cut
carbon footprint.
• Proactively implement carbon manage-
ment strategies.
Energy
Negative impact Energy use derived from fossil-based
fuels, results in greenhouse gas (GHG)
emissions, which contribute to climate
change.
• Shift to renewable energy (wind, solar,
hydro).
• Energy efficiency improvements with
upgrades and optimisation.
Biodiversity
and eco-
systems
Direct impact drivers
on biodiversity loss
Deforestation
Negative impact Deforestation, driven by agricultural
expansion and land-use change leads
to biodiversity loss. Sourcing ingredients
from deforested areas can harm biodiver-
sity and destabilise ecosystems due to
changes in land use, freshwater and sea
use change.
• Sourcing certified raw materials and
collaborating with suppliers and NGOs
to ensure deforestation-free practices.
• Exploring regenerative agriculture and
alternative raw materials with lower
environmental impacts.
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Material
Topic Sub-topic
Material
impact or risk Description Mitigation
Resource
use and
circular
economy
Resource inflows,
including resource
use
Negative impact High resource use and single-use plastics
cause depletion, pollution, environmental
degradation and high emissions.
• Proactively exploring opportunities to
prevent waste generation and promoting
recycling.
• Implementation of advanced technologies
for better resource efficiency.
• Follow standards for environmental
management.
Resource Outflows
related to Products
Negative impact Waste generation due to inefficient
processes contributes to landfil and
environmental pollution.
• Implementation of waste reduction
practices.
• Use of environmental management
system.
Negative impact Plastic packaging negatively impacts the
environment by depleting resources, con-
tributing to greenhouse gas emissions and
plastic pollution, and generating waste that
persists in ecosystems.
• Reducing plastic and minimising
packaging.
• Using renewable materials in packaging
through the PlantPack project.
S
Own
workforce
Working
Conditions
Negative impact Work-related stress can lead to burnout,
reduced productivity, and higher employee
turnover, impacting both employee
well-being and the organisation’s long-
term capacity.
• Introduction programs, evaluations,
learning platforms, vitality initiatives, and
surveys.
• Workload monitoring and promoting time
off to support work-life balance.
Negative impact Workplace hazards primarily include
machinery risks, slippery floors, chemical
spills, and vehicle accidents, which can
result in severe injuries, absenteeism, legal
liabilities, reputational harm, and work-
related stress. Health risks include chem-
ical exposure, noise pollution, and mental
health issues.
• Health and safety management system
covering all Cloetta production sites and
offices.
• Processes and training programs to pro-
actively manage and minimise risks and
incidents.
• Continous monitoring and strict adherence
to safety protocols to prevent incidents and
accidents.
Negative impact Lack of equality and diversity in the
workplace can limit perspectives, reduce
collaboration, and create barriers to equal
opportunities, potentially affecting over-
all team perfor-mance and employee
well-being.
• Measures for competence development,
equal pay, and non-discrimination
• Introduction programs, platforms for devel-
opment and learning, health-promoting
activities, and regular employee surveys
(Cloetta engagement survey)
• Leadership trainings and other initiatives
to promote equal opportunities.
Risk Productivity loss and brand impact due to
injuries or illnesses can lead to a downtime
in production or the overall efficiency on
offices. If not adequately managed, inci-
dents could harm the company’s reputa-
tion, affecting customer and investor trust.
• See mitigations for workplace hazards and
health issues.
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Material
Topic Sub-topic
Material
impact or risk Description Mitigation
Workers in
the value
chain
Working
conditions
Negative impact Working conditions and other work related
rights risks including inadequate wages
may arise in procurement of raw materi-
als like cocoa and palm oil from high-risk
regions.
• Sourcing 100 per cent certified palm oil
(RSPO) and cocoa (Rainforest Alliance).
• Third-party monitoring through local
audits.
• Collaborating with Rainforest Alliance’s
“Living Income Fund” to support farmers’
incomes.
Other work-
related rights
Negative impact Child and forced labour may occur in sup-
ply chains, particularly in agriculture and
cocoa production, contributing to human
rights violations. Vulnerabilities tied to
poverty and weak local institutions vary
by market.
• Enhancing supplier performance through
Sustainable Sourcing program to ensure
that raw materials are sourced to protect
and improve social impacts in the supply
chain.
Consumers
and end-
users
Personal safety
of consumers
and/or end-users
Negative impact Inadequate control over food traceability,
hygiene, and safety may affect consumers
by increasing the risk of product contami-
nation, allergic reactions, and other health
consequences.
• Source first-class raw materials aligned
with international quality standards.
• Conduct chemical and physical tests on
raw materials and finished products.
• Develop policies addressing key product
safety issues.
• Maintain plans for information dissem-
ination and product recalls in case of
deficiencies.
Negative impact High sugar content in products is linked
to health issues like obesity and diabetes,
posing a risk as health-conscious consum-
ers demand natural ingredients and low-
sugar alternatives, potentially reducing
demand for traditional sweets.
• Provide clear information about product
content and calories.
• Develop lower-sugar and sugar-free
product options.
• Promote dental health alongside
confectionery offerings.
Protection
of children
Negative impact Misleading or excessive marketing
targeted at children can influence their
consumption habits unethically as children
are particularly susceptible to influence.
• Practice responsible marketing by
adhering to EU Pledge guidelines.
• No marketing efforts targeting children
to reduce risks of obesity and over-
consumption.
• Commit to being a positive role model
through ethical marketing practices.
G
Business
conduct
Corruption
and bribery
Risks Corruption and bribery risks, primarily
significant in regions with inadequate reg-
ulations enforcement. Risks can emerge at
various stages of the value chain, leading
to unethical practices, increased costs,
strained supplier relations, and reputa-
tional harm.
• Cloetta has established processes for
addressing potential corruption issues
within the company. This includes training
sessions, guidelines, and comprehensive
policies. The Cloetta Code of Conduct
outlines these challenges for our work-
force, while the Supplier Code of Conduct
obligates suppliers to comply with ethical
business practices.
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Sustainability governance
Board and Management’s role and
responsibility
Organisation
The Board of Directors and President and
CEO are ultimately responsible for Cloetta’s
sustainability-related efforts and results.
They are ultimately responsible for the
compliance with laws and regulations, of
which there are no significant instances
of non-compliance. Cloetta’s Group Man-
agement Team has played a key role in
developing our sustainability agenda. Each
sustainability initiative has a dedicated
executive sponsor from the Group Manage-
ment Team to ensure focused leadership
and accountability.
Cloetta’s sustainability work is led by
the CMO, who works together with the
Global Marketing Director, Candy & Sus-
tainability and Director’s direct reports.
Together with the Sustainability manager
they report on progress at monthly Group
Management Team meetings, where sus-
tainability is a standing item on the agenda.
The Sustainability Manager is responsible
for driving the sustainability agenda, while
the Sustainability Reporting Manager
oversees reporting and compliance mat-
ters. Both act as the stakeholders’ link to
the Group Management Team and support
the implementation of Cloetta´s sustain-
ability agenda. In addition, the company’s
different business function leaders are
responsible for the implementation of the
sustainability agenda within their part of
the organisation. Environmental and occu-
pational health and safety managers are in
place at all Cloetta’s factories, and report
to the group Director of Health, Safety and
Environment (HSE).
With support of the Sustainability man-
ager, the Group Management Team is
responsible for evaluating the effective-
ness and relevance of the management
approach to sustainability. Sustainability
updates are provided to the Board of Direc-
tors, sustainability trainings and regular
progress meetings are provided for the
Group Management Team and the whole
company. The Audit Committee, estab-
lished by the Board of Directors, primarily
oversees Cloetta’s processes and internal
control of sustainability reporting. For more
information regarding corporate govern-
ance, see the Corporate governance report
on pages 46–52 and 58–61.
Sustainability Board
During 2024, a new sustainability forum
was established, the Sustainability Board,
to enhance Cloetta’s focus and strategic
oversight on sustainability initiatives. This
board will play a crucial role in driving the
sustainability agenda forward, ensuring
alignment with our long-term goals, and
fostering collaboration across different
departments and stakeholders. With the
Sustainability Board in place directors who
have closer ties to the daily operations are
more involved, while the Group Manage-
ment Team functions takes a supportive
sponsorship role. This structure enables a
practical and responsive forum for address-
ing sustainability issues and ensures better
alignment of priorities across different
areas. Leaders of specific sustainability
initiatives report their key performance
indicators (KPIs) and overall progress
directly to their designated members of the
Sustainability Board and the Sustainability
Affairs team.
Governance Sustainability Board:
• Decide and approve deliveries
• Manage key questions and provide
direction
• Escalation point for the Sustainability
Affairs
• Prioritises resources when needed
• Monthly board meetings
• Progress of each focus area is reported by
the Sustainability Board members. Focus
area leads participate upon invitation.
• Follow-up on tactical plan for Cloetta´s
sustainability agenda
Sustainability policies and procedures:
• Monthly progress tracking at Group
Management Team meeting
• Use of third-party certification schemes
• Cloetta’s Code of Conduct
• Cloetta’s Supplier Code of Conduct
• Quarterly updates at Board meetings
• Discovery platforms for innovation
• BRC (British Retail Consortium, global
standard for food safety)
• GMP (Good Manufacturing Practices)
• Internal control policy & management
systems
• Health and Safety policy
• Environmental policy
Board of Directors
Group Management Team
Sustainability Affairs
Leads for sustainability focus areas
Sustainability Board
Board of Directors
• Annual review
Group Management Team
• Sets overall direction and priorities
• Makes strategic decisions
• Sponsor for sustainability initiatives
Sustainability Board
• Drives Cloetta’s sustainability agenda
• Makes tactical decisions
• Manage key questions and
provide direction
• Escalation point for the
Sustainability Affairs
• Prioritises resources when needed
Sustainability Affairs
• Ensure progress and drive develop-
ment of sustainability agenda
• Ensure compliance with
sustainability legislation
• Develop internal and external
sustainability communication
Leads for sustainability
focus areas
• Project management and
follow-up of stakeholders
• Data collection, analysis and
KPI follow-up
• Risk management
• Development of deliverables
• Reports to Sustainability Board
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• Approval and Monitoring of Suppliers
• Anti-bribery and Anti-corruption policy
• Fraud policy
• Whistleblower policy
• Palm oil policy
The policies commit Cloetta to conduct
business responsibly in many ways, such
as conducting due diligence, applying the
precautionary principle, respecting human
rights, and including at-risk or vulnerable
groups in our organisation and/or supply
chain. We communicate our policies exter-
nally on cloetta.com, as well as directly with
associated stakeholders. In addition to the
company-wide online training for the Code
of Conduct, we also offer sustainability-
related training, and news shared on our
intranet.
Risk management
Cloetta´s sustainability-related risk iden-
tification takes place in the course of con-
ducting and updating the double materiality
analysis that covers the entire organisation
and also, where relevant, the value chain.
We face both opportunities and risks in our
business activities, as uncertainty about
future events can impact operations pos-
itively or negatively. Risks may arise from
external factors beyond our control or from
internal mismanagement within the com-
pany, its suppliers, or customers.
Cloetta’s Board of Directors is respon-
sible for the overall risk management. The
Group Management Team provides risk
assessments related to business develop-
ment, sustainability and long-term strategy
to the Board of Directors. Cloetta’s oper-
ational risk management is guided by our
Code of Conduct and various policies.
Risk identification and prevention are key
responsibilities of the Group Manage-
ment Team, ensuring proactive measures
are taken to minimise or prevent negative
impacts on operations. Monitoring events
that could affect confidence in Cloetta or
disrupt operations is a priority. Sustainabil-
ity-related risks are managed separately
from the company’s other risk management
processes, but are partially integrated into
the control processes. These risks are pri-
marily governed by the materiality analysis.
Read more about Cloetta’s risk manage-
ment on page 40 and internal control on
pages 56–57.
Due diligence
Cloetta supports international standards
on business and human rights such as the
Organisation for Economic Co-operation
and Development (OECD) Guidelines for
Multinational Enterprises, the International
Bill of Human Rights, and the core conven-
tions of the International Labour Organiza-
tion (ILO). We take a risk-based approach
to due diligence, based on OECD Guide-
lines, and actions are adjusted accordingly
across the value chain. This includes policy
development and integration, strengthen-
ing of grievance mechanisms, training and
capacity building, strategy development,
collaborations in industry initiatives, and
other ways to manage risk and contribute
to a positive impact on people and the
environment. Our due diligence process
is designed to identify, prevent, mitigate,
and account for potential adverse impacts
associated with our operations and sup-
ply chain. We engage with stakeholders,
including employees, suppliers, and local
communities, to understand their con-
cerns and expectations. This engagement
informs our risk assessments and helps
us prioritise actions to address the most
significant issues.
5. Communication
of outcomes
We communicate how
impacts are addressed in
our sustainability report.
4. Monitoring
We track implementation
and results.
6. Remediation
We enable remediation when appropriate,
given our level of impact and influence.
3
2
4
5
1
Governance
We embed Responsible
Business Conduct
though our Governance
and Policies.
Cloetta’s approach to due diligence
¹
2. Impact identification
We identify and assess adverse
impacts in our operations, supply
chain and business relationships.
3. Mitigation of impacts
We cease, prevent, or mitigate
actual or potential adverse impacts
through appropriate measures.
1) Approach according to the OECD guidance for responsible business conduct.
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E1 Climate change
Reducing our reliance on fossil fuels is crucial for our business resilience and the
planet. We are committed to reducing our environmental footprint and advancing
our understanding of the climate impacts resulting from our operations and value
chain. To achieve this, we continuously refine our data collection processes and
collaborate closely with our value chain partners.
Strategy, policy and processes
Climate strategy and transition plan
Cloetta´s climate strategy and transition
plan aim to address the urgent need for
climate action by integrating sustainabil-
ity into all aspect of operations, including
implementing key initiatives with the aim to
reduce our greenhouse gas emissions. We
align our effort with global standards and
base our methods on scientific evidence
to ensure that our climate work is credible
and impactful. As a result, we continue to
be innovative and find new ways to lower
our product’s environmental footprint. This
approach ensures that we are not only
reducing our emissions but also building
resilience for the future.As our climate jour-
ney progresses, we are collaborating with
our suppliers to expand our plant-based
product portfolio, thereby increasing our
range of vegan alternatives available to con-
sumers. We are also aiming to transition to
packaging from renewable sources or recy-
cled materials as well as renewable energy
sources, all while committing to substantial
reductions in CO₂ emissions, verified by the
Science Based Targets initiative. Cloetta
Climate Journey defines our overarching
targets and milestones towards the sci-
ence-based target of 46 per cent green-
house gas emissions reduction by 2030.
To support this journey, we established
an overall climate transition plan that is
designed to align with the Paris Agreement
and the 1.5-degree target and cover our
scope 1, 2, and relevant scope 3 emissions
across the value chain. The transition plan
includes operational efficiency improve-
ments to reduce energy consumption,
transitioning to renewable energy sources
across production facilities as well as col-
laborating with suppliers to lower emissions
in raw material sourcing, packaging, and
transportation. Cloetta´s climate transition
plan is approved by the Group Manage-
ment Team and the Board of Directors and
is embedded in our overall business strat-
egy through our company-wide Climate
Action Program. Progress against target is
monitored monthly, with updates reported
transparently to ensure accountability and
alignment with international climate com-
mitments. The transition plan includes
approximately 200 local and central initi-
atives that support our climate journey on
short and long term. The main initiatives
in the transition plan are the renewable
energy shift for our own sites, focusing on
natural gas and liquefied petroleum gas
(LPG). Production processes to become
more reliant on renewable electricity is also
part of the plan for scope 1 and 2. Emissions
occuring from our suppliers is a subcentral
part of the scope 3, and this is due to the
agriculture farming methods and its impact
on land use carbon emissions. Also, our
products and packaging have a substantial
impact on the climate footprint. All outlined
initiatives are essential to achieving our
climate objectives.
Increase Decrease Total
Source: CEMAsys
Climate transition plan
tCO₂e savings by 2030
2019
Baseline
Total savings
19–24
Renewable
energy
Waste Transports
& Travel
Product &
Packaging
Gap 2030
target
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
315,168
–27,463
170,191
–2,601
–6,810
–85,377
–21,423
–10,002
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Climate journey
1
A good
start
100 per cent renewable
electricity
100 per cent RSPO certi-
fied segregated palm oil
100 per cent Rain Forest
Alliance certified cocoa
20 per cent packaging
from renewable sources
or recycled materials
8.5 per cent reduction of
CO₂e coming from total
waste
Sign up for Science
Based Targets – 46 per
cent CO₂e emission
2
Accelerate
our journey
•
Engage all key suppliers
to set their own emission
reduction targets by
2025
•
Increase plant-based
(vegan) confectionery
portfolio with 100 per
cent by 2025 vs 2019
•
100 per cent recyclable
packaging by 2025
•
50 per cent of transpor-
tation to renewable fuel
by 2025
•
All new company cars will
be 100 per cent electric
by 2025
•
Zero emissions from total
waste by 2030
3
Scaling
up
•
Support key suppliers
to increase share of
regenerative agriculture
methods by 2030
•
Increase plant-based
(vegan) confectionery
portfolio with 100 per cent
by 2030 vs 2025
•
100 per cent packaging
from renewable sources
or recycled materials by
2030
•
75 per cent of transpor-
tation to renewable fuel
by 2030
•
75 per cent renewable
energy sources by 2030
4
Delivering
our promise
Reaching the targets
approved by Science
Based Targets initiative
46%
CO₂ reduction by 2030
CO₂
2019 2023 2025 2030
Our approach and strategy
As a leading confectionary company, we
recognise the important role we play in
addressing climate change and are com-
mitted to reducing our environmental
impact. Our products rely on raw materials
sourced globally, and their production and
consumption come with significant respon-
sibilities. This drives us to integrate climate
action into every aspect of our operations,
from sourcing raw materials to packaging. In
2020, Cloetta set ambitious science-based
targets to reduce our greenhouse gas
emissions by 46 per cent by 2030, using
2019 as the baseline year. These targets
are approved by the Science Based Targets
initiative (SBTi) and reflect our commitment
to global climate goals.
Climate Action Program
Cloetta is committed to proactive climate
governance, which is integrated into our
sustainability and business strategy. Our
approach is reflected in our Climate Action
initiative. We have also established a Climate
Action Program to effectively manage our
climate initiatives and reduce greenhouse
gas emissions across all three scopes. This
comprehensive initiative consists of sev-
eral interconnected workstreams that bring
together diverse departments. Our strategy
emphasises collaboration, allowing teams
to share best practices and innovative solu-
tions that drive progress. Furthermore, we
actively seek insights from industry leaders
and sustainability experts to incorporate
varied perspectives and enhance our strate-
gies. Through this collaborative framework,
Cloetta not only aims to meet our emission
reduction targets but also strives to inspire
a broader commitment to sustainability
throughout our operations.
Policies
Cloetta’s Environmental Policy forms a core
part of our sustainability agenda, emphasis-
ing a commitment to reducing the environ-
mental impact throughout the value chain.
The policy includes resource efficiency,
climate action, and circular economy prin-
ciples, with a focus on reducing carbon
emissions, energy and water use, and min-
imising waste. Continuous improvement is
built into the approach, with clear objectives
and regular reviews. This ongoing improve-
ment process is guided by our environmen-
tal management system, which ensures
compliance with regulations and stake-
holder expectations. We strive for open
communication with internal and external
stakeholders and report regularly on our
performance.
The President and CEO and the Group
Management Team at Cloetta hold ultimate
responsibility for ensuring the implemen-
tation of and compliance with the Environ-
mental policy. The Environmental Policy is
publicly available on our website cloetta.
com for transparency and accessibility.
Relevant policies
• Cloetta Environmental policy
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Material
Topic Sub-topic
Material
impact or risk Description Mitigation
E
Climate
change
Climate change
mitigation
Negative impact Biodiversity loss and shortages of raw
materials due to extreme weather events,
rising temperatures and shifting ecosys-
tems impacting supply chains, damage
facilities and availability of raw materials
• Reducing emissions across the value chain
in alignment with science-based targets.
• Incorporating climate mitigation strategies
into sourcing practices, such as reducing
emissions from animal-based products
through vegan options.
• Ensuring sustainable and deforestation-
free practices by using certified raw
materials like cocoa and palm oil.
Risk Increased costs may arise due to invest-
ments in climate mitigation measures, such
as renewable energy, sustainable sourc-
ing, and energy-efficient upgrades.
• Collaborate with suppliers and peers for
shared costs and innovation.
• Waste reduction through facility upgrades,
circular economy principles and optimised
logistics.
Risk Production and supply chain disruptions,
including energy shortages, raw material
scarcities, or extreme weather, could stop
operations, delay deliveries, and harm the
company’s performance and reputation.
• Monitor sourcing and delivery processes
for disruptions.
• Protective protocols ensure safe work-
place and limit negative impacts.
Risk Regulatory risks, including fines, taxes,
or restrictions on operations.
• Monitor and adapt to climate regulations.
• Follow science-based targets to cut
carbon footprint.
• Proactively implement carbon manage-
ment strategies.
Energy
Negative impact Energy use derived from fossil-based
fuels, results in greenhouse gas (GHG)
emissions, which contribute to climate
change.
• Shift to renewable energy (wind, solar,
hydro).
• Energy efficiency improvements with
upgrades and optimisation.
Actions
Within our Climate Action initiative, the aim
is to improve the environmental perfor-
mance both in our operations and across
the supply chain. This includes assessing
emissions from our own operations as well
as working closely with suppliers to drive
emission reduction. In our production,
investments are made in energy- efficient
technologies, and we aim to transition
fully to renewable energy. As Cloetta is a
food company, approximately 90 per cent
of our total carbon footprint comes from
emissions from raw materials, packaging,
transportation, and services we purchase
(scope 3). This calls for collective action,
as well as innovative ideas and collabora-
tions beyond our operations. Consequently,
Cloetta is actively working to reduce emis-
sions from high-impact raw materials, par-
ticularly by focusing on more responsible
sourcing practices and expanding the plant-
based product offerings. By increasing our
portfolio of plant-based products, we not
only meet the growing consumer demand
for vegan options but also reduce our reli-
ance on animal-derived ingredients, which
generally have a higher environmental foot-
print. The aim of this plant-based shift is to
contribute to lower greenhouse gas emis-
sions, in line with our broader sustainability
goals and science-based targets.
To mitigate potential negative impacts
within the value chain, we proactively col-
laborate with suppliers, making carbon
emission a central aspect of our supplier
relationship management. Efforts are par-
ticularly focused on key suppliers, selected
based on procurement volume, spending,
product category, and geographic or social
risk. By collecting data related to carbon
emissions from key suppliers, we gain a
better understanding of their progress and
assess their impact on our carbon footprint.
We aim to continue to strengthen our col-
laboration with our suppliers to collectively
progress towards our climate targets.
FLAG
In 2024, the work to set FLAG targets
(Forest, Land, and Agriculture-related
Greenhouse Gas) was initiated, and the
process will continue in 2025. In the initial
phase, the focus has been on collecting
data from key suppliers, particularly
those with a significant impact on our
raw material portfolio, as well as selected
third-party suppliers where volume is
considered relevant. The data collection
serves as the foundation for the contin-
ued analysis and validation of emission
factors. As part of the FLAG project, the
emission factors used in our calculations
are reviewed and compared with alterna-
tive sources. The goal is to ensure that the
most reliable and relevant factors form
the basis of our analyses, with a particular
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focus on materials that have the greatest
impact on our carbon footprint. Once the
data collection and review of emission fac-
tors are completed, we will assess whether
adjustments are needed to improve the
accuracy of our reporting.
Improvements on data collection
Throughout 2024, we worked on two pro-
jects to enhance our data systems and
improve our ability to analyse the climate
impact of various activities. These tools
enable us to simulate and evaluate the
carbon emission implications in different
scenarios, such as selecting alternative
raw materials for ingredients and pack-
aging or implementing energy reduction
initiatives. By refining these systems, we
aim to make more informed, data-driven
decisions to effectively manage and reduce
our carbon footprint across operations.
Energy efficiency improvements
Cloetta plans to incorporate more efficient
technologies to reduce internal energy con-
sumption, showcasing our commitment
to energy efficiency. Recognising that a
considrable portion of our CO₂ emissions
from factories originates from natural gas
combustion, nearly double that of electric-
ity use, we aim to phase out natural gas to
lower the total carbon footprint. Cloetta is
fully committed to sustainable energy prac-
tices, sourcing almost 100 per cent of our
electricity from green sources, verified by
green certificates. Energy consumption is
closely monitored and regularly reviewed,
with employees trained to understand their
impact.
External collaborations
Due to its production site in Ljungsbro,
Cloetta, together with Tekniska verken i
Linköping AB, is part of the local initiative
Linköpingsinitiativet, which brings together
actors from both the private and public
sectors in Linköping to address challenges
related to energy, material use, and trans-
portation. Tekniska verken i Linköping AB, a
municipal company specialising in sustain-
able energy and infrastructure solutions,
helps convert by-products from Cloetta’s
confectionery production into renewable
biogas used as fuel. The collaboration pro-
motes resource efficiency through energy
optimisation and conversion, with a shared
focus on identifying innovative ways to
develop circular resource flows.
In our Ljungsbro site, a study has been
performed regarding increasing biome-
thane in the production as a replacement
for petroleum gas. This initiative holds the
potential to lower our emissions by shifting
to a renewable energy source and it sup-
ports the local energy production.
Targets
• 46 per cent absolute greenhouse gas emissions reduction by
2030 compared to 2019 base year emissions
Performance
Greenhouse gas emissions
Total greenhouse gas emissions have
decreased by approximately 3 per cent
compared to the baseline in 2019. In 2024,
expected greenhouse gas emission sav-
ings was impacted by an increased out-
sourcing of manufacturing, approximately
12 per cent compared to the previous year,
especially related to the closing of the pro-
duction site in Roosendaal Borchwerf in
mid-2024. There was also an increased
volume of purchased raw materials that
impacted our greenhouse gas emissions
with approximately 7 per cent compared
to previous year. Emissions from the com-
pany’s own operations (scope 1 and scope
2) remained stable with a slight decrease,
driven by operational efficiencies. Total
energy consumption decreased slightly,
but energy intensity increased due to lower
production volumes. Additionally, changes
in production and logistics influenced both
emissions and energy usage. For scope 1
and scope 2 emissions, the variations are
minimal, with an overall slight decrease
observed. Specifically, scope 1 emissions
saw a marginal reduction due to decreased
natural gas consumption in 2024, mainly
resulting from operational efficiencies.
However, this reduction was partially offset
by increased consumption of purchased
steam, which is accounted for under scope
2 emissions. Electricity consumption
showed a modest decline across most of
Cloettas operating countries, with some
regional variations. Biogenic emissions
from combustion of fuel in leased vehi-
cles are included in scope 3 reporting and
totaled approximately 60.15 tCO
2
e
Energy
Total energy consumption experienced a
decrease from 191,594 MWh to 189,543
MWh in 2024. However, as production vol-
umes were lower in 2024 compared to
2023, the KPI for energy intensity increased
from 1.89 MWh/tonne to 1.94 MWh/tonne.
The reduction in production volumes does
not directly correlate and lead to a reduc-
tion in energy consumption, as it depends
on many other factors such as the product
types produced and building baseload.
Therefore, the energy intensity target has
not decreased, instead it has increased
due to the lower production volumes.
This change is attributed to small reduc-
tions in natural gas, electricity, and district
heating consumption.The reduction in
electricity usage was primarily observed in
some regions, while the decrease in self-
produced natural gas was concentrated
in specific production sites. The closure of
the production site also contributed to the
reduced consumption of gas and electricity.
District heating consumption declined,
particularly linked to specific production
operations. At one production site, elec-
tricity usage remained almost unchanged,
while district heating decreased signifi-
cantly, reflecting energy-saving measures.
However, due to increased production
of specific products requiring steam and
utilising liquefied petroleum gas (LPG), the
absolute consumption of these energy
sources has increased.
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Metrics
Gross scopes 1, 2, 3
and Total GHG emissions
Retrospective Milestones and target years
Base
year 2024 20231
%, 2024/
2023 20252 2030
Annual %
target/
Base year3
Scope 1 GHG Emissions
Gross scope 1 GHG emissions (tCO₂eq) 14,306 19,304 20,107 - 4 17,374 7,725 4
Scope 2 GHG Emissions
Gross location-based scope 2 GHG emissions (tCO₂eq) 19,909 11,676 12,082 - 3 11,522 10,751 4
Gross market-based scope 2 GHG emissions (tCO₂eq) 15,026 2,930 2,150 36 N/A N/A N/A
Scope 3 GHG Emissions
Total Gross Indirect (scope 3) GHG emissions (tCO₂eq) 280,953 274,187 273,263 0 253,775 151,715 4
1
Purchased goods and services4 246,033 241,514 236,916 2 N/A N/A N/A
3
Fuel and energy-related activities
(not included in scope 1 or scope 2)
4,834 5,972 6,344 - 6 N/A N/A N/A
4
Upstream transportation and distribution 15,299 14,425 15,979 - 10 N/A N/A N/A
5
Waste generation 1,286 1,209 2,274 - 47 N/A N/A N/A
6
Business travelling 2,266 1,306 1,248 5 N/A N/A N/A
7
Employee commuting 3,934 3,628 3,819 - 5 N/A N/A N/A
8
Upstream leased assets 1,792 1,142 1,279 - 11 N/A N/A N/A
9
Downstream transportation 1,773 1,878 1,855 1 N/A N/A N/A
12
End-of-life treatment of sold products5 3,736 3,113 3,548 - 12 N/A N/A N/A
Total GHG Emissions
Total GHG emissions (location-based) (tCO₂eq) 315,168 305,166 305,452 0 292,896 170,191 4
Total GHG emissions (market- based) (tCO₂eq) 310,285 296,420 295,520 0 N/A N/A N/A
Source: CEMAsys
1) Category 1: Purchased goods and services in has been adjusted for 2023 due to a calculation error in emissions from third-party production, leading to an increase in scope 3 and total
carbon emissions compared to the previous reporting period.
2) The targets for 2025–2029 are based on a linear projection to achieve a 46% reduction by 2030.
3) The calculation reflects the average annual percentage reduction required to reach a 46% reduction from the 2019 base year to 2030. This is determined by dividing the emissions in the
target year by the emissions in the base year and then distributing the reduction over the years from 2019 to 2030.
4) Transports is not included in the emissions from third-party production.
5) Emissions from the end-of-life treatment of sold products for 2023 have been adjusted from previous reporting due to a miscalculation.
GHG intensity
GHG intensity per net sales¹ 2024 2023 2024 / 2023
Total GHG emissions (location-based) per net sales (tCO₂eq/SEKm) 35.4 35.5 1.0
Total GHG emissions (market-based) per net sales (tCO₂eq/SEKm) 34.4 34.3 1.0
Source: CEMAsys
1) The calculation of greenhouse gas intensity is based on Cloetta’s total emissions in tonnes of CO₂ equivalents divided by net sales (SEKm). Net sales is reconciled with relevant items in the
financial statements, which are disclosed in note 1 on page 118.
GHG emissions distribution by scope¹
%, tCO₂e
7%
4%
89%
Scope 1
Scope 2
Scope 3
19,304 tCO₂e
11,676 tCO₂e
274,187 tCO₂e
Total 305,166 tCO₂e
GHG emissions
tCO₂e (scope 1, 2, 3)
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
0
50000
100000
150000
200000
250000
300000
350000
Scope 3
Scope 2
Scope 1
202420232022202120202019
Scope 1 Scope 2 Scope 3
1) tCO₂e (metric tons of carbion dioxide equivalent) represents
emissions from all greenhouse gases.
Source: CEMAsys Source: CEMAsys
Target
2030
Energy consumption
Mwh/prod. tonne
2.0
1.5
1.0
0.5
0
0,0
0,5
1,0
1,5
2,0
202420232022202120202019
Source: CEMAsys
Target
2030
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Energy consumption and mix 2024 2023
(2) Fuel consumption from crude oil and petroleum products (MWh) 6,700 5,808
(3) Fuel consumption from natural gas (MWh) 83,282 88,092
(5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh) 19,397 16,612
(6) Total fossil energy consumption (MWh) (calculated as the sum of lines 2, 3, 5)
109,379 110,512
Share of fossil sources in total energy consumption (%)
58 58
(9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 80,164 81,082
(11) Total renewable energy consumption (MWh) (calculated as the sum of line 9)
80,164 81,082
Share of renewable sources in total energy consumption (%)
42 42
Total energy consumption (MWh) (calculated as the sum of lines 6, and 11)
189,543 191,594
Source: CEMAsys
Accounting principles
Climate data and emissions reporting
To improve the reliability of reported data,
Cloetta employs internationally recognised
methodologies and frameworks, including
the Greenhouse Gas Protocol (GHG Proto-
col). Climate data is collected monthly, with
emissions data consolidated at the Group
level. In accordance with the GHG Protocol,
an operational control approach for scope
1, 2 and 3 emissions is applied. Any material
changes—such as acquisitions, divesti-
tures, or significant changes in calculation
or disclosure principles—trigger a review
of the base year and may result in a restate-
ment of historical emissions data.
Emission factors and methodology
For emissions calculations, Cloetta utilises
up-to-date emission factors provided by
its sustainability data software provider.
These factors are sourced from reputable
entities, including DEFRA, IEA, EcoInvent,
IMO, IPCC, AIB, and WBCSD/WRI, and are
based on life cycle analysis (LCA) using a
cradle-to-gate approach. Calculations are
performed in Cloetta’s greenhouse gas
emissions reporting system. The report-
ing considers the following greenhouse
gases, all converted into CO₂- equivalents:
CO₂, CH4 (methane), N₂O (nitrous oxide)
and HFCs. The total reported GHG emis-
sions are expressed in metric tons of
CO₂ equivalent (tCO₂e). For all emission
scopes, location-based and market-based
approach for calculating GHG emissions
is applied, using activity data from the most
recent annual accounts. Cloetta calcu-
lates location-based emissions based on
data on electricity production in the areas
where Cloetta has production sites, tak-
ing into account the energy mix, including
fossil fuels. Emission factors are typically
sourced from national data published by the
IEA, while district heating and cooling are
based on local or national averages. Market-
based emissions are calculated based on
Cloetta’s procurement agreements. When
purchasing Guarantees of Origin (GoOs)
or Renewable Energy Certificates (RECs),
the electricity is assumed to have zero
emissions. Without these certificates, the
residual mix is used, which has a higher
emission factor
Scope 1 emissions cover direct emis-
sions from Cloetta-owned or controlled
assets, including on-site energy use
( natural gas, refrigerants, boilers) and
fuel consumption in company-owned
vehicles. Scope 2 emissions account for
indirect GHG emissions from purchased
energy (electricity, steam, heating, cool-
ing) produced off-site. Scope 3 emis-
sions represent indirect GHG emissions
from Cloetta’s value chain, divided into
upstream and downstream activities.
Upstream emissions encompass GHG
emissions related to purchased goods and
services. Biogenic emissions are based on
the combustion of fuel from leased vehi-
cles. Downstream emissions cover emis-
sions related to warehousing, distribution,
transport, marketing, sales, end-of-life
treatment of products etc. According to
SBT guidelines, we identify and report the
scope 3 categories that are assessed to
have a significant impact on our total car-
bon footprint and are essential to our busi-
ness model, supply chain, and production.
Excluded categories are considered negli-
gible. Scope 3 estimates are based on LCA
studies relevant to our operations and are
conducted by a third party to ensure calcu-
lation quality. 83.5 per cent of scope 3 data
is primary data from suppliers and value
chain partners. Scope 1 and 2 contain no
estimations, as the data is based on actual
consumption records from suppliers.
Energy consumption and mix
Energy consumption data are collected
from all our production facilities and offices.
This includes direct energy consumption
(scope 1) from on-site fuel use and indi-
rect energy consumption (scope 2) from
purchased electricity, steam, heating, and
cooling. Energy data is collected monthly
and reported at the Group level. For acqui-
sitions, divestments, or other significant
operational changes, the data collection
methods are reassessed to ensure consist-
ent and comparable reporting. Energy mix
data is documented based on the sources
of energy consumed, including fossil fuels,
electricity, and renewable energy. Energy
sources are categorised by type ( natural
gas, heat fuel, district heating, etc.) and
reported the percentage of total energy
consumption derived from each source.
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EU Taxonomy Reporting
Background
Regulation (EU) 2020/852 (the Taxonomy
Regulation) is designed to support the
transformation of the EU economy to meet
its European Green Deal objectives, includ-
ing the 2050 climate-neutrality target. The
Taxonomy Regulation establishes six envi-
ronmental objectives which are described
in the delegated acts adopted under the
regulation. In the following section, we as a
non-financial parent company present the
share of our group turnover, capital expend-
iture (Capex) and operating expenditure
(Opex) for the reporting period 2024, which
are associated with Taxonomy-eligible and
aligned economic activities related to the
six environmental objectives.
Our economic activities as a
confectionary company
– Taxonomy- non-eligible
We have examined all Taxonomy-eligible
economic activities listed in the delegated
acts under the Taxonomy Regulation,
based on our activities as a confectionery
company. As a confectionery company,
we define the manufacturing of choco-
late and sugar confectionery as the core
of our business activities. We concluded
that our core economic activities are not
covered by the delegated acts under the
Taxonomy Regulation and consequently are
Taxonomy-non -eligible. Referring to Annex
XII in the delegated act on nuclear energy
and natural gas, Cloetta does not engage
in any nuclear energy or fossil gas-related
activities.
Our KPIs
The KPIs include turnover, Capex and
Opex. For the reporting period 2024, the
KPIs must be disclosed in relation to Tax-
onomy-aligned economic activities and
consequently Taxonomy-eligible activities
related to specific environmental objectives
such as climate change, water and marine
resources, circular economy, pollution
and biodiversity. Capex and Opex include
those that are related to the purchase of
output from Taxonomy-aligned economic
activities and certain individual measures
enabling the target activities to become
low-carbon, or to lead to greenhouse gas
(GHG) emission reductions.
Analysis of Taxonomy eligibility
and alignment
A Taxonomy-eligible economic activity
is an activity that is described in the del-
egated acts adopted under the Taxon-
omy Regu lation irrespective of whether
that activity meets any or all the technical
screening criteria laid down in those del-
egated acts. Regarding Capex and Opex
related to purchases and measures that we
consider as individually Taxonomy eligible,
we refer to the explanations below in the
sections “Capex KPI” and “Opex KPI” in
the description of our accounting policies.
Since our economic activities as a confec-
tionery company are not covered by any
of the delegated acts under the Taxonomy
Regulation, the share of Taxonomy-eligible
or aligned economic activities in our total
turnover is 0 per cent and, consequently,
the related Capex and Opex are also 0 per
cent. However, we disclose Capex and
Opex relating to the purchase of output
from Taxonomy-eligible economic activities
and individual measures to improve energy
efficiency listed in the delegated acts. We
have not been able to verify alignment with
our suppliers. To be Taxonomy-aligned,
an eligible activity must comply with the
technical screening criteria, i.e., whether a
substantial contribution is being made to
climate protection, contribute to at least one
of six listed environmental objectives, and
do no significant harm (DNSH criteria) to
any of the other objectives, while respecting
basic human rights and labour standards,
anti- bribery/anti-corruption, taxation and
fair competition.
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Taxonomy reporting table 2024 – Turnover
Financial year 2024 Year
Substantial
contribution criteria
DNSH criteria (“Does Not
Significantly Harm”) (h)
Economic activities (1)
Code (a) (2)
Turnover, SEKm (3)
Proportion of turnover, 2024 (4)
Climate change mitigation (5)
Climate change adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change mitigation (11)
Climate change adaptation (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards (17)
Taxonomy
aligned
(A.1.)
or eligible
(A.2.) pro-
portion of
turnover,
2023 (18)
Category
(enabling
activity)
(19)
Category
(tran-
sitional
activity)
(20)
Text Cur-
rency
% Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-eligible activities
A1. Environmentally sustainable
activities (Taxonomy-aligned)
Turnover of environ mentally
sustainable activities
(Taxonomy- aligned) (A.1.)
- 0
- - - - - -
- - - - - - - 0
Of wich enabeling - 0 - - - - - - - - - - - - - 0 -
Of wich transitional - 0 - - - - - - - 0 -
A2. Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-
aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Turnover of Taxonomy- eligible
but not environmentally
sustainable activities (not
Taxonomy-aligned) (A.2)
- 0
- - - - - -
0
A. Turnover of
Taxonomy- eligible
activities (A.1+A.2)
- 0 - - - - - - 0
B. Taxonomy-non-eligible
activities (B)
Turnover of Taxonomy-
non- eligible activities (B)
8,613 100
Total (A+B)
8,613 100
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Taxonomy reporting table 2024 – Capex
Financial year 2024 Year
Substantial
contribution criteria
DNSH criteria (“Does Not
Significantly Harm”) (h)
Economic activities (1)
Code (a) (2)
Capex, SEKm (3)
Proportion of Capex, 2024 (4)
Climate change mitigation (5)
Climate change adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change mitigation (11)
Climate change adaptation (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards (17)
Taxonomy
aligned
(A.1.)
or eligible
(A.2.) pro-
portion
of Capex,
2023 (18)
Category
(enabling
activity)
(19)
Category
(tran-
sitional
activity)
(20)
Text Cur-
rency
% Y; N; N/
EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-eligible activities
A1. Environmentally sustainable
activities (Taxonomy-aligned)
Capex of environmentally
sustainable activities
( Taxonomy-aligned) (A.1.)
0 - - - - - - - - - - - - - 0
Of wich enabeling 0 - - - - - - - - - - - - - 0 -
Of wich transitional 0 - - - - - - - 0 -
A2. Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-
aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Transport by motorbikes,
passenger cars and light
commercial vehicles
CCM 6.5 35 16
EL N/EL N/EL N/EL N/EL N/EL
7.9
Renovation of existing buildings CCM 7.2 3 1
EL N/EL N/EL N/EL N/EL N/EL
1.3
Installation, maintenance and repair
of energy efficiency equipment
CCM 7.3 4 2
EL N/EL N/EL N/EL N/EL N/EL
10.8
Installation, maintenance and
repair of instruments and devices
for measuring, regulation and
controlling energy performance
of buildings
CCM 7.5 0 0
EL N/EL N/EL N/EL N/EL N/EL
0.5
Acquisition and ownership
of buildings
CCM 7.7 24 11
EL N/EL N/EL N/EL N/EL N/EL
6.6
Capex of Taxonomy- eligible
but not environmentally
sustainable activities
(not Taxonomy-aligned) (A.2)
66 29 - - - - - - 27.2
A. Capex of Taxonomy-eligible
activities (A.1+A.2)
66 29 - - - - - - 27.2
B. Taxonomy-non-eligible
activities (B)
Capex of Taxonomy-
non- eligible activities (B)
158 71
Total (A+B)
224 100
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Taxonomy reporting table 2024 – Opex
Financial year 2024 Year
Substantial
contribution criteria
DNSH criteria (“Does Not
Significantly Harm”) (h)
Economic activities (1)
Code (a) (2)
Opex, SEKm (3)
Proportion of Opex, 2024 (4)
Climate change mitigation (5)
Climate change adaptation (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Climate change mitigation (11)
Climate change adaptation (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity (16)
Minimum safeguards (17)
Taxonomy
aligned
(A.1.)
or eligible
(A.2.) pro-
portion of
Opex, 2023
(18)
Category
(enabling
activity)
(19)
Category
(tran-
sitional
activity)
(20)
Text Cur-
rency
% Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-eligible activities
A1. Environmentally sustainable
activities (Taxonomy-aligned)
Opex of environmentally
sustainable activities
( Taxonomy-aligned) (A.1.)
0 - - - - - - - - - - - - - 0
Of wich enabeling 0 - - - - - - - - - - - - - 0 -
Of wich transitional 0 - - - - - - - 0 -
A2. Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-
aligned activities)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Product-as-a service and other
circular use and result -oriented
service models
CCM 5.5 13 5
N/EL N/EL N/EL N/EL EL N/EL
-
Renovation of existing buildings CCM 7.2 0 0
EL N/EL N/EL N/EL N/EL N/EL
0.8
Installation, maintenance and repair
of energy efficiency equipment
CCM 7.3 4 2
EL N/EL N/EL N/EL N/EL N/EL
2.1
Installation, maintenance and
repair of instruments and devices
for measuring, regulation and
controlling energy performance
of buildings
CCM 7.5 13 5
EL N/EL N/EL N/EL N/EL N/EL
-
Acquisition and ownership
of buildings
CCM 7.7 11 4
EL N/EL N/EL N/EL N/EL N/EL
-
Opex of Taxonomy- eligible
but not environmentally
sustainable activities
(not Taxonomy-aligned) (A.2)
41 16 - - - - - - 2.9
A. Opex of Taxonomy-eligible
activities (A.1+A.2)
41 16 - - - - - - 2.9
B. Taxonomy-non-eligible
activities (B)
Opex of Taxonomy-
non- eligible activities (B)
224 84
Total (A+B)
265 100
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Nuclear energy related activities
1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative
electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
No
2 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative
electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
No
3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity
or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear
energy, as well as their safety upgrades.
No
Fossil gas related activities
4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce
electricity using fossil gaseous fuels.
No
5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and
power generation facilities using fossil gaseous fuels.
No
6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities
that produce heat/cool using fossil gaseous fuels.
No
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Accounting principles
We determine the Taxonomy-eligible or
aligned KPIs in accordance with the legal
requirements and describe our accounting
policy in this regard as follows:
Turnover KPI
The proportion of turnover shall be calcu-
lated as the part of the net turnover derived
from products or services, including intan-
gibles, associated with Taxonomy- eligible
or aligned economic activities (numerator),
divided by the net turnover (denominator).
The turnover shall cover the revenue rec-
ognised pursuant to International Account-
ing Standard (IAS) 1, paragraph 82(a), as
adopted by Commission Regulation (EC)
No 1126/2008 (1). The accounting policy
regarding Net sales which corresponds
to net turnover is disclosed on page 118.
Details of the net sales is provided in Note 3
on page 123.
Capex KPI
The Capex KPI is defined as Taxonomy-
eligible or aligned Capex (numerator)
divided by our total Capex (denominator).
Total Capex consists of additions to tangi-
ble and intangible fixed assets during the
financial year, before depreciation, amor-
tisation and any re-measurements, includ-
ing those resulting from revaluations and
impairments, as well as excluding changes
in fair value. It includes additions to fixed
assets (IAS 16), intangible assets (IAS 38)
and right-of-use assets (IFRS 16). Additions
resulting from business combinations are
also included. Goodwill is not included in
Capex, because it is not defined as an intan-
gible asset in accordance with IAS 38. Total
capex can be reconciled against the year’s
additions in Note 12 Intangible assets on
page 127, Note 13 Property, plant and equip-
ment on page 129 and Key ratios on page
166 where Capex is disclosed separately.
The amount in here consists of the two
additions of Note 12 and 13.
Opex KPI
The KPI is defined as Taxonomy- eligible
or aligned Opex (numerator) divided by our
total Opex (denominator). The denominator
of the KPI shall cover direct non-capitalised
costs that relate to research and develop-
ment, building renovation measures, short
term lease, maintenance and repair, and
any other direct expenditures relating to the
day-to-day servicing of assets of property
plant and equipment (PP&E). In general,
this includes staff costs, costs for services,
and material costs for daily servicing as well
as for regular and unplanned maintenance
and repair measures. This does not include
expenditures relating to the day-to-day
operation of PP&E such as: raw materials,
cost of employees operating the machinery,
and electricity or fluids that are necessary
to operate PP&E. The related cost items can
be found in various line items in our income
statement.
Explanations on the numerator of the Capex KPI and the Opex KPI
Since Cloetta AB has no eligible or aligned
turnover generating economic activities,
we do not record Capex and Opex related
to assets or processes that are associated
with Taxonomy-aligned economic activ-
ities in the numerator of the Capex KPI
and the Opex KPI. Furthermore, there are
no Capex plans to upgrade a Taxonomy-
eligible economic activity to become Tax-
onomy-aligned (“category a and b”). Only
“category c” Capex and Opex can therefore
qualify as Taxonomy-eligible and conse-
quently aligned, i.e., related to the purchase
of output from Taxonomy- aligned eco-
nomic activities and individual measures
enabling the target activities to become
low-carbon or to lead to GHG reduction.
These individual measures correspond to
economic activities listed in the delegated
acts supplementing the Taxonomy Regula-
tion. The following activities were identified
as taxonomy -eligible:
Corresponding economic activity
5.5 Product-as-a-service and other circular
use- and result-oriented service models
6.5 Transport by motorbikes, passenger cars
and light commercial vehicles
7.2 Renovation of existing buildings
7.3 Installation, maintenance and repair
of energy efficiency equipment
7.5 Installation, maintenance and repair
of instruments and devices for measuring,
regulation and controlling energy performance
of buildings
7.7 Acquisition and ownership of buildings
These activities include investments in our
factories to become more energy efficient,
renovations and maintenance, car leasing,
extended and new leasing agreements for
buildings and circular use. For the alloca-
tion of Capex and Opex we have identified
the relevant purchases and measures, and
we have identified the primary related eco-
nomic activity in the Climate Delegated
Act. In this way, we ensure that no Capex or
Opex is considered more than once.
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E4 Biodiversity
and ecosystems
As a leading confectionery company, we recognise the impact our operations can
have on biodiversity and ecosystems. Our products are dependent on raw materials
across the world, and the biodiversity needed to maintain healthy ecosystems that
supply these crucial materials. Therefore, we have a great responsibility to reduce
our environmental footprint and contribute to more resilient ecosystems.
Our approach and strategy
As a confectionery company, Cloetta
depends on ingredients such as sugar,
starch, palm oil, cocoa, and nuts, where
agriculture impacts ecosystems and con-
tributes to the loss of biodiversity. Large-
scale farming practices often involve
deforestation and the use of chemical pes-
ticides, which can harm species like pollina-
tors and contaminate ecosystems. Cloetta’s
dependency on palm oil and cocoa indi-
rectly contributes to deforestation, leading
to habitat loss, fragmentation, and soil deg-
radation. Additionally, climate change fur-
ther impacts biodiversity, forcing species to
relocate and altering ecosystems globally.
We acknowledge these challenges, and we
are focused on mitigating the environmental
footprint across our value chain. Cloetta’s
ongoing efforts to protect biodiversity and
ecosystems are critical to our long-term
sustainability and resilience. By integrating
biodiversity into the sustainability agenda,
our strategic planning and operations, we
not only meet regulatory requirements but
also contribute to global efforts to decrease
biodiversity loss.
Sustainable sourcing of agricultural raw
materials means paying particular atten-
tion to agricultural practices with the over-
all goal of turning negative environmental
impacts into positive ones. Protecting bio-
diversity is intimately connected to climate
change where deforestation adds to the
issue, while reforestation can provide part
of the solution. Cloetta’s collaboration with
the Rainforest Alliance and the Roundtable
on Sustainable Palm Oil (RSPO) supports
the company’s sustainability goals, par-
ticularly in sourcing key raw materials like
cocoa and palm oil more responsibly. These
partnerships help us meet our sustainability
targets by improving our environmental and
social performance, supporting responsible
sourcing practices across our supply chain,
and contributing to the company’s broader
commitment to reducing our overall envi-
ronmental footprint. For other raw materials,
Cloetta is working directly with suppliers as
well as with NGO’s to improve traceability
and improved overall sustainability perfor-
mance.
Policies
Cloetta has several governing docu-
ments that guide the management of
biodiversity- related sustainability topics.
These policies help shape our approach to
minimise impact on biodiversity. Cloetta’s
environ mental, palm oil, and Supplier Code
of Conduct policies form the foundation of
our commitment to responsible sourcing
and business practices. The Environmen-
tal Policy emphasises Cloetta’s dedication
to reducing our environmental footprint
by promoting resource efficiency and
addressing climate change. The palm oil
policy ensures that 100 per cent of the palm
oil used is RSPO-certified, supporting sus-
tainable agriculture and reducing deforest-
ation. Cloetta’s factories that manufacture
products using palm oil are therefore certi-
fied according to the RSPO SCCS annually.
Meanwhile, the Supplier Code of Conduct
establishes expectations for ethical behav-
ior, environmental responsibility, and fair
labour practices for all suppliers, ensuring
alignment with Cloetta’s sustainability goals.
The President and CEO and the Group
Management Team at Cloetta hold ultimate
responsibility for ensuring the implementa-
tion of and compliance with these policies
and they are also publicly available on our
website cloetta.com for transparency and
accessibility. Additionally, the Supplier Code
of Conduct is shared with business partners
when contracts are established to ensure
alignment with Cloetta’s sustainability and
ethical standards.
Relevant policies:
• Supplier Code of Conduct
• Palm oil policy
• Environmental policy
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Material
Topic Sub-topic
Material
impact or risk Description Mitigation
E
Biodiversity
and eco-
systems
Direct impact drivers
on biodiversity loss
Deforestation
Negative impact Deforestation, driven by agricultural expan-
sion and land-use change leads to bio-
diversity loss. Sourcing ingredients from
deforested areas can harm biodiversity and
destabilise ecosystems due to changes in
land use, freshwater and sea use change.
• Sourcing certified raw materials and
collaborating with suppliers and NGOs to
ensure deforestation-free practices.
• Exploring regenerative agriculture and
alternative raw materials with lower
environmental impacts.
Actions
By sourcing 100 per cent Rainforest Alliance
certified cocoa, we aim to mitigate the risks
associated with unsustainable practices,
ensuring that our cocoa is produced respon-
sibly, with a focus on minimising deforest-
ation and promoting biodiversity. Our
collaboration with the Rainforest Alliance
allows us to contribute to initiatives that
safeguard ecosystems, enhance soil health,
and support responsible farming methods.
Palm oil production is linked to negative
impacts on biodiversity, including deforest-
ation and habitat destruction. Today, the
RSPO is the most widely supported method
of achieving improved standards for palm
oil production and the full supply chain is
monitored by independent, RSPO-accred-
ited auditors. Through our commitment to
RSPO, we ensure that the palm oil used in
our products is sourced from certified plan-
tations, helping to reduce the negative envi-
ronmental impacts, such as deforestation
and habitat destruction. Cloetta has phased
out palm oil from products where it is neither
necessary nor the most optimal choice for
efficiency, taste, and texture.
During 2024, Cloetta has worked on
further integrating biodiversity consider-
ations into the business operations. This
includes the development of additional
policies to strengthen our commitment to
preserving ecosystems within our supply
chain. We continued our collaboration with
suppliers and third-party organisations to
enhance the performance of our suppliers
and drive social and environmental projects
related to our raw materials, ensuring that
our sourcing practices protect or improve
the environmental and social impacts within
the supply chain.
Value chain
During 2024, we took steps to enhance our
biodiversity efforts as we conducted an
in-depth assessment to identify the areas
within the value chain that have the most
significant impact on biodiversity. This
assessment identified key agricultural raw
materials—such as sugar, cocoa, and palm
oil—as having the most significant biodiver-
sity risks, especially in regions vulnerable
to deforestation. Based on these findings,
Cloetta has prioritised actions in areas with
the greatest potential to reduce negative
impacts.
EU Deforestation regulation (EUDR)
In 2024, Cloetta has proactively prepared for
the upcoming EU Deforestation Regulation
by implementing a series of strategic meas-
ures to ensure compliance and reinforce
our commitment to responsible sourcing.
We have strengthened our supply chain due
diligence processes, focusing on trace ability
and transparency, particularly for raw mate-
rials linked to deforestation risks. Our efforts
include collaborating closely with suppli-
ers to verify the origin of key ingredients,
enhancing our monitoring systems, and
conducting risk assessments to identify and
mitigate potential deforestation impacts.
Targets
• With palm oil-based vegetable oils, continue to source
100 per cent RSPO segregated certified palm oil
• Maintain 100 per cent Rainforest Alliance certified cocoa
Performance
In 2024, we upheld our commitment to
biodiversity by continuing to source 100
per cent certified cocoa and palm oil. This
ongoing dedication ensures that bio diver-
sity protection remains central to our supply
chain, as both RSPO and Rainforest Alliance
certification programs emphasise sustain-
able agriculture and responsible land use.
By adhering to these certifications, we are
helping to mitigate deforestation risks and
supporting biodiversity conservation in the
regions where our key ingredients are grown.
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E5 Resource use and
circular economy
Efficient resource management is a priority for Cloetta across the entire value chain.
We are committed to adopting a circular approach and continuously assessing the
environmental impact of our products and packaging throughout their life cycle.
Our key focus areas include efficient resource use, enhancing operational efficiency,
reducing emissions to air, water, and soil, and ensuring responsible use of chemicals.
Our approach and strategy
Efficient resource management is a priority
for Cloetta across the entire value chain.
While sourcing raw materials and produc-
ing confectionery items, especially on a
large scale, we recognise the significant
amounts of energy, water, refrigeration,
machinery, and transportation needed.
These factors contribute to greenhouse
gas emissions and environmental impacts.
Cloetta´s waste streams are primarily
linked to food production and packaging
materials. The main waste types include
food waste, such as production residues,
as well as packaging waste. Additionally,
process wastewater is generated during
production. The waste mainly consists
of biomass from food residues, plastic
from packaging and production materials,
paper and cardboard from packaging,
and smaller amounts of metals, such as
machine components from maintenance.
Certain manufactured goods are discarded
due to quality defects, production errors,
or process inefficiencies. These products
do not meet the required standards for sale
and consumption. If possible, scrapped
products are reintroduced into production.
Some waste streams are repurposed as
animal feed or converted into biogas for
energy production. Example on such waste
streams are sugar, fondant, masses, candy
or chocolate defects and non-standard
packaged products. Waste from gum goes
to rework or incineration. Non- recoverable
products are disposed following food
safety and environmental regulations.
Packaging plays a crucial role in protecting
our products, ensuring quality, and extend-
ing shelf life, which helps reduce waste
and resource consumption. However, it
also has an environmental impact through
resource use, greenhouse gas emissions,
and end-of-life disposal. Therefore, prior-
itising the selection of type and amount of
packaging material is crucial. Furthermore,
circular packaging solutions are essential
to support the development in the recycling
industry. By focusing on recyclable, recy-
cled and renewable materials, we address
the industry’s environmental impact and
aim to reduce waste throughout our value
chain. Cloetta’s targets of 100 percent
recyclable packaging by 2025 and 100
percent packaging made from renewable
or recycled materials by 2030 align with
global efforts to reduce plastic waste and
mitigate climate impacts.
Optimising resource use, minimising
waste, and reducing emissions are critical
for maintaining stakeholder trust, particu-
larly among consumers who increasingly
seek responsibly sourced products. Effec-
tive resource management not only drives
cost savings and operational efficiency
but also reduces risks and helps meet the
growing expectations for responsible busi-
ness practices. Our strategy for efficient
resource use is embedded into our sustain-
ability agenda, primarily through initiatives
like “Less and Better Packaging”, as well as
waste management practices and local col-
laborations focused on circular solutions.
Policies
Cloetta’s Environmental Policy guides our
efforts to use resources efficiently, reduce
waste, and enhance our environmental per-
formance throughout our operations. The
policy covers all stages of our supply chain,
from sourcing raw materials to recycling
packaging. Environmental considerations
are integrated into product development,
technical installations, and investments.
Cloetta’s way of working is founded on a
philosophy of continuous improvement to
strengthen our environmental performance,
as outlined in our environmental manage-
ment system. This system includes guide-
lines that support the implementation of the
Environmental Policy, ensure compliance
with legal and other requirements, and
meet the expectations of our stakeholders.
The President and CEO and Group
Management Team at Cloetta hold ultimate
responsibility for ensuring the imple-
mentation of and compliance with the
Environ mental policy. For transparency
the Environmental policy is also publicly
available on our website cloetta.com.
Relevant policies:
• Environmental policy
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Material
Topic Sub-topic
Material
impact or risk Description Mitigation
E
Resource
use and
circular
economy
Resource inflows,
including resource
use
Negative impact High resource use and single-use plastics
cause depletion, pollution, environmental
degradation and high emissions.
• Proactively exploring opportunities to
prevent waste generation and promoting
recycling.
• Implementation of advanced technologies
for better resource efficiency.
• Follow standards for environmental
management.
Resource Outflows
related to Products
Negative impact Waste generation due to inefficient
processes contributes to landfill and
environmental pollution.
• Implementation of waste reduction
practices.
• Use of environmental management system.
Negative impact Plastic packaging negatively impacts the
environment by depleting resources,
contributing to greenhouse gas emissions
and plastic pollution, and generating waste
that persists in ecosystems.
• Reducing plastic and minimising
packaging.
• Using renewable materials in packaging
through the PlantPack project.
Actions
Less and Better Packaging
All Cloetta’s packaging must guarantee good
quality and safety for our products. On top of
this Cloetta has the “Less and Better Pack-
aging” initiative focusing on reducing plastic
use, adopting renewable materials, improving
recyclability, and reducing the overall envi-
ronmental impact of packaging. An essen-
tial contributor to reach our target of 100 per
cent packaging from renewable sources or
recycled materials by 2030, is our PlantPack
innovation. PlantPack replaces up to 50 per
cent of fossil-based plastic with plant-based
plastic derived from multiple sources such
as sugar cane, used cooking oil or tall oil, a
by-product of the pine pulp industry. When
using used cooking oil or tall oil it’s done via
a mass-balance principle to ensure that
renewable feedstock is integrated into the
packaging production process, resulting in
reduced CO₂ emissions and less reliance on
fossil fuels. We will continue making further
progress in replacing more packaging materi-
als with our PlantPack innovation. Regarding
to our goal of all packaging material used in
Cloetta production sites to be recyclable, we
have worked according to The Circular Econ-
omy for Flexible Packaging’s (CEFLEX) defi-
nition of recyclability. We will revise according
to Packaging and Packaging Waste Regula-
tion (PPWR) and remain committed to achiev-
ing recyclable packaging by 2030 through
continuous innovations. We are continuously
investigating moving additional volume from
plastic tubs to bag in box solution. The bag in
box solution reduces the amount of plastic
used per kg packed product.
Waste management and recycling
In our manufacturing processes, we focus
on reducing waste and improving efficiency
through several programs. We also have
waste management procedures in place to
separate and recycle waste where possible.
Our environmental management system,
aligned with ISO 14001 standards, provides a
structured approach, adaptable at each pro-
duction site. Four of our sites are included in
our ISO 14001 multi-certificate. Our environ-
mental reporting system regularly monitors
our resource usage and waste, providing
insights that inform our strategies and helps
us set realistic targets for waste reduc-
tion. Furthermore, we continuously work
to replace hazardous chemicals with safer
alternatives to reduce environmental risks.
This proactive approach helps to mitigate
environmental risks and aligns with our goal
of a healthier environment.
In 2024, our focus has been on opera-
tional excellence and minimising scrapped
products, while seeking opportunities for
advanced waste management solution to
achieve higher levels in the waste hierarchy.
Additionally, we have further enhanced the
details in our environmental data.
Targets
Waste
• Zero emissions from total waste by 2030
• 95 per cent recovered and recycled waste by 2030
Packaging
• 100 per cent recyclable packaging by 2025
• 100 per cent packaging from renewable sources or
recycled materials by 2030
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Performance
During 2024, PlantPack accounted
for approximately 18 per cent of the total
plastic packaging used in our Cloetta pro-
duction sites, which is approximately 6 per
cent more compared to 2023. Previously
we have focused on tracking the PlantPack
implementation progress, measuring the
percentage PlantPack solutions of total
plastic packaging in our production sites.
From 2024, we also track the percentage
PlantPack solutions of total flexible plastic
packaging, since that represents the main
focus of the implementation. For flexible
plastic packaging, PlantPack accounted
for approximately 30 per cent, which is
approximately 11 per cent more com-
pared to 2023. Since setting the 100 per
cent recyclable packaging-goal, we have
implemented several initiatives to phase
out PVC and the use of PET in laminates.
Through partnership with our suppliers,
we have worked on developing new mate-
rials that push the boundaries of technol-
ogy and performance to help contribute to
our targets. As of 2024, we have achieved
approximately 98 percent recyclable pack-
aging used at Cloetta's production sites
and around 94 percent based on consumer
packaging, leading us to consider the 2025
target achieved. However, we will con-
tinue to work together with our suppliers to
improve the recyclability of our packaging
to ensure compliance with PPWR.
In 2024, total waste amounted to
236 kg per tonne produced, representing
an increase from previous year. An error in
the reporting system affected two waste
fractions, leading to higher reported waste
volumes. This impacts historical waste
data from 2019 to 2024, resulting in revised
figures in this year’s reporting compared
to previous year. The increase in waste is
mainly due to higher waste streams associ-
ated with process wastewater. For example,
at the Ljungsbro plant, an equalization tank
with aeration was installed to remove more
fat from the wastewater before discharge,
which has increased the waste of fats.
Also, due to some increased waste streams
associated with process waste water at
Levice plant. Waste data from offices have
also been included in the reporting for
2024. For most of the offices, estimates of
the waste data have been made.
Waste¹
kg/prod. tonne2
0
50
100
150
200
250
202420232022202120202019
Target
2030
Source: CEMAsys
1) Revised waste data from 2019 and onwards.
2) Waste per produced ton is calculated by
dividing the total waste generated within the
organisation by the total amount of product
produced. The targets for 2025–2029 are
projected linearly to achieve a 46% reduction
by 2030.
PlantPack 2024¹ %
2019
0
2023
20
2024
30
2025
45
2026
50
2027
60
2028
70
2029
85
2030
100
30%
19%
Targ et
2030
1) Figures based on total flexible plastic packaging in Cloetta's production.
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Metrics
Resource outflows
Waste generation 2024 2023
Hazardous
waste
Non-
Hazardous
waste Total
Hazardous
waste
Non-
Hazardous
waste Total
(1) Incineration 15 890 905 16 1,135 1,151
(2) Landfill 11 304 315 11 298 309
(3) Other waste fractions 99 17,250 17,349 100 14,172 14,272
(4) Total waste directed to disposal
(calculated as the sum of lines 1-3 )
125 18,444 18,569 127 15,605 15,732
(5) Recycled waste¹ 9 1,374 1,383 11 1,416 1,427
(6) Recovered waste² N/A 3,127 3,127 N/A 3,163 3,163
(7) Total waste diverted from disposal
(calculated as the sum of lines 5-6)
9 4,501 4,510 11 4,579 4,590
Total waste generated, tonnes
(calculated as the sum of lines 4-7)
134 22,945 23,079 138 20,184 20,322
Source: CEMAsys
1) Recycled waste: reprocessing of products or components of products that have become waste, to make new materials. Material recycled waste
may include paper, plastic, metal, carton, wood pallets, electronics etc.
2) Recovered waste, other operations: scrapped product to animal feed.
2024 2023
Tonnes % Tonnes %
Total amount of non-recycled waste 21,696 94 18,895 93
Total amount of waste generated 23,079 100 20,323 100
Source: CEMAsys
Accounting principles
Waste
Waste data is collected and managed
using standardised methodologies aligned
with health, safety, and environmental
(HSE) best practices, as well as relevant
regulatory and sustainability reporting
frameworks. Waste fractions are classi-
fied according to DEFRA’s categorisation
framework. Combustion factors are derived
from ECO Invent. Reporting is based exclu-
sively on measured data, capturing the pre-
cise weight or volume of waste collected
by authorised waste transporters. Each
local site is responsible for tracking and
validating waste data, sourcing information
directly from waste transport providers and
receiving facilities. This data is systemati-
cally entered into the central sustainability
data management platform, which consol-
idates, monitors, and analyses waste gen-
eration, disposal methods, and material
recovery rates across the organisation.
Packaging
Data on all packaging materials delivered
to Cloetta production sites is collected
through our ERP-system. Packaging data
is calculated in absolute terms, meaning
reported figures fluctuate with produc-
tion volumes; lower production typically
results in reduced packaging figures and
vice versa. The percentage of PlantPack is
evaluated using two metrics: percentage
PlantPack of total plastic packaging and
the percentage PlantPack of total flexible
plastic in Cloetta production sites. Flexible
plastic includes all plastic films, mainly for
consumer packaging but also other pack-
aging materials, for example stretch film for
pallets. Recyclability is evaluated using two
distinct metrics: the percentage of all pack-
aging materials that are recycle-ready and
the percentage of consumer units meeting
recycle-ready criteria.
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S1 Own workforce
We believe that a healthy and safe working environment is crucial to foster and
sustain an engaged and productive workforce. Therefore, we are committed to
continuously developing a well-balanced work environment where employees can
perform at their best. To systematically improve our performance, our approach to
managing workforce- related matters is divided into two areas, Human Resources
and Health and Safety.
Our approach and strategy
Human Resources
Cloetta is driven by the conviction that value
is created through our employees, and that
the ability to attract, retain, and develop
the best and most competent people is
crucial to our success. Cloetta emphasises
the importance of supporting employees
through fair labour practices, strong health
and safety measures, and opportunities for
career growth.
Our strategy for employee well-being
is embedded in our broader sustainability
agenda through our initiative, Diversity,
Equity and Inclusion (DEI). This initiative
focuses on fostering a work environment
that supports employee health, engage-
ment, and career development. Specific
actions include offering development
opportunities, promoting work-life balance,
and ensuring fair treatment for all employ-
ees across the organisation. By embedding
employee well-being into our overall cor-
porate strategy, we ensure a consistent,
fair, and supportive environment that aligns
with both our business and sustainability
objectives.
Cloetta values
Cloetta’s values—Focus, Passion, Team-
play, and Pride—steer us in creating an inclu-
sive company culture. These values unite
our diverse workforce, helping individuals
with varied skills, experiences, and aspira-
tions work together toward shared goals.
Health and safety
Our health and safety strategy is designed
to improve the physical, social, and organ-
isational aspects of the workplace at all
levels. Management at all levels of the
organisation bears the responsibility of
minimising potential negative impacts on
employees’ well-being. To this end, Cloetta
has developed a comprehensive roadmap
to transition from a reactive to a preventive
safety mindset. Health and safety are key
priorities that influence how we design our
work processes and organise our activi-
ties. By maintaining a focus on health and
safety, we aim to prevent workplace inju-
ries and occupational illnesses, safeguard-
ing the well-being of our workforce. A safe
and healthy work environment directly
impacts our ability to achieve our business
objectives through increased productivity,
reduced absenteeism, and enhanced
employee morale.
Key elements of our strategy include the
development and implementation of a strong
safety culture. This involves targeted initia-
tives aimed at reducing risks and preventing
injuries while promoting overall well-being
throughout the company. Our health and
safety strategy is integrated into our overall
sustainability agenda, ensuring it being imple-
mented across both production sites and
offices. Specific actions include regular risk
assessments, safety training, and continuous
improvement measures to enhance work-
place safety standards.
Operations
The backbone of operations is the Cloetta
Leading Performance Program (CLPP) with
the vision to create the Perfect Factory.
The aim of the program is to create a trust-
worthy and engaging environment in which
employees feel empowered to deliver
improvements. The program involves
improving operational excellence, and stra-
tegic investments to modernise the plant
network. Through these efforts, we aim to
create an organisation where health and
safety considerations are embedded in
our daily operations and decision-making
processes.
Policies
Cloetta has established policies to prioritise
the well-being, safety, and work environ-
ment of employees. These policies outline
essential principles for creating a safe and
supportive workplace that promotes phys-
Focus
Pride Teamplay
Cloetta values
Passion
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ical health, mental well-being, and overall
safety. They guide our efforts to proactively
manage potential health risks, ensure a
positive work environment, and continu-
ously improve safety standards.
Through these policies, we are commit-
ted to fostering a relationship of trust and
respect with employees, guided by col-
laboration with European and local works
councils, as well as labour unions. Cloetta
upholds the laws and regulations in all coun-
tries where it operates and adheres to the
ILO’s Fundamental Social Principles, focus-
ing on key areas such as equality, freedom
of association, collective bargaining, health
and safety, and fair working hours.
Human Resources policies
Cloetta’s HR policies are aligned with the
corporate governance framework and
cover all aspects of the employee lifecycle,
including recruitment, onboarding, perfor-
mance management, talent and succession
management, and employee engagement.
These policies ensure that HR manage-
ment aligns with our vision and values.
The aim is to support our strategy, foster
a positive workplace culture, and create a
performance-driven environment based
on Cloetta’s core values. Additionally, the
policies promote respect for diversity,
equity, and inclusion, valuing employees
for their unique backgrounds, skills, and
experiences. These policies are also
communicated to all managers within
the organisation.
Health and Safety policy
Cloetta’s Health and Safety policy has its
foundation in our sustainability values.
Our aim is to build Cloetta into a sustain-
able organisation of engaged, motivated
and healthy employees. Cloetta’s occupa-
tional health and safety objective centers
on ensuring employees’ well-being through
a zero-work-related ill-health vision. Key
focus areas include providing safe and
healthy working conditions for physical
and psychological health, reducing risks to
prevent injury and ill-health, continuously
improving safety performance, and foster-
ing a supportive, inclusive workplace free
from discrimination and harassment. The
policy is relevant for all people working
under the Cloetta brand and/or visit Cloetta
premises.
The President and CEO and the Group
Management Team at Cloetta hold ultimate
responsibility for ensuring the implemen-
tation of and compliance with the Health
and Safety and the central HR policy. The
business lead and the HR Business Partner
of each unit are responsible for implement-
ing local HR policies. For transparency, the
Health and Safety policy is also publicly
available on our website cloetta.com. Reg-
ular reviews ensure that our policies are
effectively implemented, remain compliant
with regulations, and evolve in response to
changing workforce needs and feedback.
Relevant policies:
• Central HR Policy
• Local HR policies
• Health and Safety policy
Material
Topic Sub-topic
Material
impact or risk Description Mitigation
S
Own
workforce
Working
Conditions
Negative impact Work-related stress can lead to burnout,
reduced productivity, and higher employee
turnover, impacting both employee
well-being and the organisation’s longterm
capacity.
• Introduction programs, evaluations, learning
platforms, vitality initiatives, and surveys.
• Workload monitoring and promoting time
off to support work-life balance.
Negative impact Workplace hazards primarily include
machinery risks, slippery floors, chemical
spills, and vehicle accidents, which can
result in severe injuries, absenteeism, legal
liabilities, reputational harm, and work-
related stress. Health risks include chem-
ical exposure, noise pollution, and mental
health issues.
• Health and safety management system
covering all Cloetta production sites and
offices.
• Processes and training programs to pro-
actively manage and minimise risks and
incidents.
• Continous monitoring and strict adherence
to safety protocols to prevent incidents and
accidents.
Negative impact Lack of equality and diversity in the
workplace can limit perspectives, reduce
collaboration, and create barriers to equal
opportunities, potentially affecting over-
all team performance and employee
well-being.
• Measures for competence development,
equal pay, and non-discrimination
• Introduction programs, platforms for devel-
opment and learning, health-promoting
activities, and regular employee surveys
(Cloetta engagement survey)
• Leadership trainings and other initiatives to
promote equal opportunities.
Risk Productivity loss and brand impact due to
innjuries or illnesses can lead to a down-
time in production or the overall efficiency
on offices. If not adequately managed, inci-
dents could harm the company’s reputa-
tion, affecting customer and investor trust.
• See mitigations for workplace hazards and
health issues.
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Engaging with own workforce
We actively foster a workplace culture that
encourages open communication, collab-
oration, and professional development.
Through employee surveys and feedback
mechanisms, we assess engagement lev-
els and gather insights to inform our policies
and practices.
Human Resources
A key tool to continuously improve engage-
ment is the Cloetta Engagement Survey,
which measures the following indexes:
Overall engagement, leadership, team,
management, e-NPS. This survey is con-
ducted every second year. Managers have
access to a portal where the results for their
team are visible with specific focus areas-
Results are shared within the team and
define concrete actions to improve.
Health and safety
Our processes for engaging with our work-
force encompass regular communication,
training, and a systematic approach to
health and safety responsibilities. To
enhance competence development, we
provide comprehensive training programs
that outline specific roles and responsi-
bilities related to health and safety. This
includes practical deployment of our health
and safety awareness methodology which
is designed to strengthen our overall health
and safety culture. Through this initiative,
we ensure that everyone understand their
vital role in maintaining a safe workplace.
Our engagement processes also include
regular health and safety assessments,
employee feedback mechanisms, and
health and safety audits. These practices
allow us to continually improve our health
and safety measures and respond proac-
tively to any concerns raised by our work-
force. Employees are encouraged to share
their experiences and suggestions through
various channels, including surveys and
direct communication with management.
Furthermore, risk assessments are done
for vulnerable groups to prevent these
groups of being exposed to physical or
psychological harm.
Remediate negative impacts
We actively identify, assess, and remediate
any adverse effects our operations may
have on our employees and the wider com-
munity. We have established channels for
our workforce to raise potential concerns
regarding workplace conditions, discrim-
ination, or any other issues affecting their
well-being. Employees can report their con-
cerns confidentially through our dedicated
whistleblower function, or directly to their
line managers. We encourage an open dia-
logue, fostering a culture where everyone
feels empowered to speak up without fear
of retaliation. For more details, see page 105
in section G1 Business Conduct.
Actions
Human Resources
At Cloetta, we enhance employee
well-being and engagement through var-
ious initiatives, ensuring a positive and
growth-oriented workplace. Our programs
include onboarding, evaluation and learn-
ing platforms, wellness activities, and reg-
ular feedback surveys. We emphasise skill
development, equal pay, non- discrimination,
parental leave, and mental health support,
to maintain a supportive and fair work
environment. Our recruitment strategy
is continuously refined with tailored pro-
cesses for different groups, best practices
across countries, and manager training
using tools like tests and self-assessments.
We employ job descriptions and a rigorous
selection process with interviews and tests
to attract top talent. Cloetta promotes a
healthy work-life balance with flexible work-
ing arrangements. The Cloetta Energy pro-
gram encourages a healthy lifestyle through
the 4B’s: Brain, Body, Behavior & Building.
Locally, we organise activities focusing
on for example balance, sports, healthy
behaviors, and ergonomics. Our “Cloetta
Tasting” introduction program facilitates a
smooth onboarding experience. This global
initiative includes welcome meetings, online
courses, engaging films, and a welcome
package with tasks designed to help new
employees to integrate into the company
culture effectively.
We apply the 70-20-10 learning model
to employee development, where 70 per
cent of learning occurs through practical
work experiences, 20 per cent through
interactions with colleagues, and 10 per
cent through formal training. The formal
training can take place in one of our
academies. This includes the Leadership
Academy, with tailored programs for differ-
ent organisational roles: Personal Leader-
ship Academy for interpersonal skills, Core
Leadership Academy for first-line leaders,
New Leadership Academy for emerging
leaders, and Advanced Leadership Acad-
emy for experienced leaders. Our annual
performance management process, sup-
ported by the Workday system, helps
employees and managers review objectives
and performance.
In 2024, we conducted the Cloetta
Engagement Survey to gather valuable
insights and feedback from our employees,
helping to identify areas for workplace
improvement. We also integrated the Learn-
ing Agility concept into our talent manage-
ment process, emphasising adaptability
and continuous learning as essential skills
for career growth and organisational suc-
cess. Learning Agility is the ability and will-
ingness to learn from experience and apply
that learning to perform successfully under
new or first-time conditions. Essentially, it
means knowing what to do when you don’t
know what to do. Managers with learning
agility can quickly adapt to changes in the
business environment, identify emerging
trends, and implement innovative solu-
tions. Additionally, we launched a new HR
initiative focused on Diversity, Equity, and
Inclusion (DEI), which included developing
policies and setting targets to foster a more
inclusive work environment.
Health and safety
Our health and safety efforts are structured
around two main objectives. Firstly, we
work proactively to identify and reduce
health and safety risks across all work
environments, from production sites to
office spaces, by implementing health and
safety protocols, conducting regular risk
assessments, and ensuring compliance
with health and safety standards. Secondly,
we aim to build a strong health and safety
culture across Cloetta, where employees
are empowered with the knowledge,
tools, and mindset to prioritise health and
safety in every task. Regular training ses-
sions, health campaigns, and engagement
programs encourage employees to adopt
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health and safety practices and take active
responsibility for their own well-being and
that of their colleagues. We prioritise health
care services in each country where we
operate, offering accessible support for
medical treatment and preventative meas-
ures. Health examinations and wellness
initiatives are part of our commitment to
ensuring that employees receive the nec-
essary care to maintain their physical and
mental well- being.
Cloetta’s way of working is built on a
continuous improvement philosophy and
is described in our health and safety man-
agement system, including guidelines to
fulfill policies and organisation compliance
obligations. Internal and external audits
are part of our continuous improvement
philosophy as well as monitoring pro-
gress through identified KPIs. Our health
and safety management system covers
all Cloetta production sites and offices. All
our employees, temporary personnel, con-
sultants and visitors are part of our health
and safety management system where the
core is to identify hazards and risks and
report all types of incidents. Our processes
enable our employees to regularly submit
reports on incidents, hazards, and risks
through each site-specific incident report-
ing structure. These reports are tracked
and monitored within our health and safety
management system. All employees have
the right to stop unsafe work if they perceive
a risk to themselves or others. Investigation
of incidents are managed by our HSE inci-
dent and reporting process that supports
us in finding the root cause and take appro-
priate actions.
In 2024, we developed two of our health
and safety processes; risk assessment
and incident reporting & investigation.
The main focus was to include a broader
scope related to human, technology and
organisational factors when performing
risk assessments and incident investiga-
tion. This approach supports the organ-
isation in understanding the root causes
and prevents incidents from re-occurring.
We also launched several E- learnings for
our workforce, this with the aim to increase
the health and safety awareness and
understanding of how we work at Cloetta
and what is expected from each individual.
Additionally, we integrated health and
safety leadership skills and behaviors into
our daily work practices, prioritising safety
and ensuring that our teams are equipped
with the knowledge and tools needed
to sustain a safe and supportive work
environment.
Targets
Human Resources
• Cloetta Engagement survey to be in line with the global
benchmark by 2025
Health and safety
• Continue to work towards zero work-related accidents
Performance
Human Resources
Cloetta Engagement Survey
The results of the engagement survey reveal
significant improvements in our engagement
score and the Employee Net Promoter
Score (E-NPS). We had a high response rate
of 88 per cent, which shows strong partici-
pation from our colleagues. Our ambition is
to score on or above the Global Benchmark.
In the 2024 survey, we achieved this bench-
mark on all indexes, and we are very close
to reaching it in team efficiency, with just
a minor gap of one percent remaining. All
managers involved have developed action
plans based on the survey’s focus areas for
their respective teams. These actions will
be evaluated throughout the year to ensure
continuous improvement and our ambition
to achieve the highest standards.
Health and safety
In 2024, we achieved a 95 per cent SRA
index, highlighting the correlation between
risk observations, near misses, and acci-
dents, and underscoring our organisational
focus on preventative measures. How-
ever, we observed an increasing trend in
lost time and recordable accidents, due to
recurring root causes. To address this, we
have expanded our approach to incident
investigations and risk assessments,
incorporating a broader focus on human,
technological, and organisational factors.
As part of our focus on incidents that could
lead to a severe work-related accident, we
have introduced the criteria: critical, major,
moderate, minor, and limited. The number
of incidents in the “major” category, accord-
ing to the new criteria, decreased by 63
per cent in 2024 compared to 2023. This
reflects improvements in the work environ-
ment and increased awareness of health
and safety across the organisation.
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Metrics
Workforce characteristics 2024
Country
Own
workforce¹
Regular
Employees
Fixed Term
Employees
Seasonal hours
employees
Contingent
Workers
Sweden 747 696 37 - 14
Slovakia 702 631 69 - 2
The Netherlands 510 432 26 - 52
Finland 296 208 11 75 2
The UK 208 207 1 - -
Belgium 117 108 - - 9
Denmark 144 136 6 - 2
Ireland 68 52 16 - -
Norway 29 28 - - 1
Germany 11 11 - - -
Italy 3 3 - - -
Other 7 4 - - 3
Total 2,842 2,516 166 75 85
Source: Workday
1) Ref. ESRS 2, SBM-1 disclosure paragraph 40; headcount of employees by geographical area. See note 6 on page 125 for average number of employees per country.
Employment category Female Male Other¹ Not disclosed Total
Regular Employees 1,369 1,147 - - 2,516
Fixed Term Employees 100 66 - - 166
Seasonal hours employees 61 14 - - 75
Contingent Workers 24 61 - - 85
Total 1,554 1,288 - - 2,842
Source: Workday
1) Gender as stated by the worker.
Turnover¹ # %
Total employee turnover 584 21
1) Turnover rate calculation based on average number of employees
and total number of employees who left during the year.
Diversity metrics
Gender distribution
management
Female Male Other¹
# % # % # %
Board of Directors 3 43 4 57 - -
Group Management Team² 2 20 8 80 - -
Managers 152 44 193 56 - -
Source: Workday
1) Gender as stated by the worker.
2) Top management refers to the managerial level directly below the administrative and supervisory bodies and consists
of the Group Management Team.
Employee age
distribution¹ # %
<30 years 463 17
30-50 years 1,379 50
>50 years 915 33
Total 2,757 100
Source: Workday
1) Only employees are counted; contingent workers are
excluded
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Health and safety
KPI Employees / Contractors Target 2024¹ 2023
Number of fatalities²
Employees - - -
Contractors - - -
Lost time injury frequency rate (LTIR)3
Employees 3.2 3 3.2
Number of LTIs
Employees 6 12 8
Contractors 1 1
Severity rate4
Employees 48 113.2 48.3
Number of lost days from work
Employees 81 457 122
Number of recordable accidents
Employees 6 16 3
Contractors 1 1
Number of first aid accidents
Employees 170 166 170
Contractors 7 2
Total recordable incident rate (TRIR)5
Employees 4.7 6.9 4.4
Total injury rate (TIR)6
Employees 72 48.1 71.6
Near miss reporting
Employees 548 692 696
Contractors 5 5
Number of unsafe acts & conditions
Employees 5,579 5,498 5,699
Contractors 35 38
Number of safety conversations
Employees 14,015 15,027 15,126
Source: CEMAsys
1) In 2024, the data for health and safety includes not only production sites but also offices, reflecting an expanded scope of reporting compared to previous years.
2) Refers to fatalities resulting from work-related injuries and fatalities resulting from work-related ill health.
3) LTIR: LTA´s x 1000.000/worked hours for the same period. LTA = An accident that resulted in days off from work (lost days), starting with the next following day according to work schedule.
4) Severity = LDWI = Day out of work due to a work-related injury or ill health. Severity: LDWI´s x 1000.000/worked hours for the same period.
5) TRIR: LTA´s + REC x 1000.000/worked hours for the same period. REC = work related injury that requires outside medical treatment.
6) TIR: LTA´s + REC + FA x 1000.000/worked hours for the same period. FA = Personal Injury that requires either self-treatment or treatment by qualified first aid person in the factory.
Accounting principles
Human Resources
Cloetta’s workforce data is reported based
on headcount as of December 31, 2024.
Data covers demographics, employment
types, and turnover rates. The data is
primarily gathered through Cloetta’s
centralised HR system, ensuring consist-
ent management. If data is unavailable
in the system, it is sourced from local HR
or payroll systems. All changes, includ-
ing hires, role updates, and terminations,
are recorded, approved, and updated in
the HR system. Our HR system is busi-
ness process- oriented, with all changes
reviewed and approved by designated
function holders. Data integrity is ensured
by extracting information directly from
the HR system using predefined reports.
Exclusions or limitations in employee data
reporting may occur in regions or employee
categories where data is unavailable or
when estimates or assumptions are nec-
essary due to data collection constraints.
Regular employment refers to permanent
or indefinite-term positions, while fixed-
term employment is for a specific duration
or assignment, including internships. Sea-
sonal employees are hired for temporary
work with non-guaranteed hours, typically
during peak seasons. Contingent work-
ers: (co-) workers who are contracted via
agencies, consultancy organisations etc. or
being self-employed, who are hired to fulfil
certain assignments.
Health and safety
Worker-related health and safety data is
sourced directly from Cloetta’s HR systems
and integrated into our central sustainability
data platform. Work-related incidents and
accidents are reported by each site – pro-
duction sites, offices, or stores. Data verifi-
cation occurs monthly at both the local site
and Group level, ensuring accuracy for reli-
able reporting. Data is monitored on a rolling
12-month basis. To monitor performance,
data from the sustainability data platform is
transferred on a daily basis, enabling real-
time tracking of key health and safety KPIs.
Cloetta measures work-related injuries
through the Lost Time Injury Rate (LTIR),
Total Recordable Incident Rate (TRIR), and
Total Incident Rate (TIR), which are calcu-
lated as the number of accidents and inju-
ries per million hours worked. LTIR refers
to injuries resulting in at least 24 hours of
absence, while TRIR also includes injuries
requiring medical treatment, and TIR covers
all recordable incidents, including cases
that only require first aid. The severity rate
indicates the length of absence and is
measured by the number of lost workdays in
relation to hours worked. Additionally, near
misses, including serious incidents without
injuries, as well as hazardous behaviors
and conditions, are tracked. These obser-
vations, often identified through safety dia-
logues, are essential for proactive accident
prevention. Incidents are assessed based
on the criterias: critical, major, moderate,
minor, and limited.
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S2 Workers in
the value chain
In order to respond to sustainability challenges and meet Cloetta’s
overall sustainability agenda, we must take care of the people involved
in the making of our products. This responsibility extends beyond our
production sites and offices. Engaging in partnerships and collaborating
with organisations allows us to support farmers and improve living
conditions throughout our supply chain.
Our approach and strategy
The physical and mental well-being of indi-
viduals throughout our value chain is funda-
mental to how we operate and is essential
for the continued trust from all stakeholders
impacted by our activities. In line with inter-
national standards, we are guided by the
International Bill of Human Rights, the Inter-
national Labour Organization’s (ILO) Core
Conventions, and the UN Guiding Principles
on Business & Human Rights. As a signatory
of the UN Global Compact, we also support
the OECD Guidelines for Multinational
Enterprises. These frameworks guide our
work, ensuring that we operate ethically and
responsibly, with a particular focus on pre-
venting and minimizing negative impacts on
people directly or indirectly affected by our
business. Cloetta takes an active role in col-
laborating with partners and organisations
to improve living conditions throughout
our supply chain. This approach is embed-
ded in our Sustainable Sourcing initiative, a
core element of our sustainability agenda.
We work to minimise negative impacts by
engaging proactively with stakeholders,
including suppliers, farmers, and local com-
munities. Through ongoing dialogue and
collaboration, we continuously improve
practices and actively address any poten-
tial impacts arising from our operations.
Our efforts include ensuring compliance
with human rights standards including child
and forced labour, and maintaining ethi-
cal working conditions and a living income
throughout our supply chain. Our different
partnerships allow us to extend our com-
mitment to ethical practices beyond our
own facilities, ensuring that our values are
reflected across the value chain.
Policies
Cloetta has established policies to ensure
that our suppliers adhere to ethical, envi-
ronmental, and social standards through-
out the supply chain. Our Supplier Code
of Conduct outlines the minimum require-
ments to ensure that our supply chain part-
ners respect human rights, establish good
labour conditions, ensure ethical business
practices and continuously improve their
environmental and health and safety per-
formance. We evaluate compliance with our
Supplier Code of Conduct as a key part of
the supplier selection process. This Code
sets out minimum standards of ethical and
responsible conduct, which we expect all
suppliers to uphold in both intent and action.
We expect our suppliers to be transparent
and have an open dialogue with us about
challenges which they encounter as part of
their operations.
The President and CEO and the Group
Management Team at Cloetta hold the
ultimate responsibility for ensuring the
implementation of and compliance with the
Supplier Code of Conduct. For transpar-
ency this Code is also publicly available on
our website cloetta.com.
Relevant policies
• Supplier Code of Conduct
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Value chain workers engagement
We engage with our suppliers and part-
ners through various mechanisms, such
as audits, surveys and questionnaires, and
open communication channels, which help
us gather insights into working conditions,
labour rights, health and safety standards.
Furthermore, our different partnerships
include collaboration with suppliers in
agricultural sourcing to promote sustaina-
ble farming practices and worker welfare.
Through partnerships with third-party
organisations and NGOs, we extend this
outreach to farmers and workers for our
raw materials. Through selected certifica-
tion programs or other collaborations, we
work to enhance agricultural practices that
protect biodiversity, uphold community
welfare, and ensure fair labour standards.
Our initiatives also include training pro-
grams that encourage sustainable farming
methods, advocate for fair working hours
and a living income as well as empowering
women. Our partners continuously evaluate
and track progress through on-the-ground
visits, audits, and local engagements, which
assess the effectiveness of these initiatives.
Remediate negative impacts
Cloetta’s whistleblower service allows both
employees and external stakeholders to
report cases of suspected serious mis-
conduct within the company, particularly
regarding actions that would go against our
ethical values, policies, or applicable laws.
This service serves as a risk-reduction tool
and supports ethical business standards by
providing a secure, confidential channel for
reporting suspected issues without fear of
retaliation. For more details, see page 105 in
section G1 Business Conduct.
Actions
Cloetta works continuously to identify
and assess potential human rights risks
and impacts on employees, contractors,
as well as the people in our supply chain.
These risks are identified based on infor-
mation from impact assessments, internal
and external experts, and other relevant
sources. Through our risk assessments we
have identified ingredients that are sourced
in countries where there have been histor-
ical instances of human rights breaches.
To safeguard the sustainability of our sup-
ply chain, we are taking proactive steps to
address identified risks with our suppliers.
Through our partnerships with NGOs and
suppliers we reach the people growing
the raw materials. Cloetta has chosen to
take part in several international initiatives
to mitigate the risk of incidents of lacking
human rights in the value chain.
During 2024, we have evaluated new
partnerships to improve living conditions
in our supply chain. The requirements for
a new partnership were based on many
criteria, including having a system-wide
approach, programs addressing human
and labour rights as well as environmental
aspects, and the documented effective-
ness of the initiatives. Based on these crite-
ria we have decided to partner with World
Cocoa Foundation. However, no decisions
have yet been made regarding specific pro-
grams to support. These decisions will be
finalised in 2025.
The Living Income Fund
Approximately 87 per cent of cocoa grow-
ing households in the Ivory Coast earn less
than a living income, a country producing
much of the world’s cocoa. Building better
livelihoods for farmers is critical to create
a world where people and nature thrive
together. Since 2020, Cloetta has part-
nered with the Rainforest Alliance to tackle
inadequate pay for cocoa farmers. This
initiative utilises mobile direct payments to
facilitate direct payments to cocoa farm-
ers, resulting in increased incomes for
participants. Alongside this financial uplift,
the initiative has also led to significant pos-
itive impacts, including improved school
attendance, enhanced food security,
Material
Topic Sub-topic
Material
impact or risk Description Mitigation
S
Workers in
the value
chain
Working
conditions
Negative impact Working conditions and other work related
rights risks including inadequate wages
may arise in procurement of raw materi-
als like cocoa and palm oil from high-risk
regions.
• Sourcing 100 per cent certified palm oil
(RSPO) and cocoa (Rainforest Alliance).
• Third-party monitoring through local
audits.
• Collaborating with Rainforest Alliance’s
“Living Income Fund” to support farmers’
incomes.
Other work-
related rights
Negative impact Child and forced labour may occur in
supply chains, particularly in agriculture
and cocoa production, contributing to
human rights violations. Vulnerabilities tied
to poverty and weak local institutions vary
by market.
• Enhancing supplier performance through
Sustainable Sourcing program to ensure
that raw materials are sourced to protect
and improve social impacts in the supply
chain.
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better access to healthcare, and greater
economic resilience within farming commu-
nities. Find out more at ra.org.
Sustaining Shea
Since 2017, we have collaborated with
one of our long-term suppliers on the Kolo
Nafaso sustainability program, aimed at
promoting the production of sustainable
shea butter in Burkina Faso, Ghana, and the
Ivory Coast.The aim is to directly source
and trace shea kernels, while empowering
the women who source the shea nuts in
rural areas. The program aims to establish
direct trade relationships with women who
collect nuts, bypassing the traditionally
male-dominated intermediaries in the sup-
ply chain. Through this partnership, we
support the women to organise themselves
into producer groups and to get training in
business management and in good post-
harvest practices. The main advantage
for the women is a higher return, as they
receive the same price that would typically
be paid to intermediaries. It is also a guaran-
teed outlet for all of their shea kernels.
Targets
• Maintain existing partnerships and initiate a new collaboration
to improve living conditions in our supply chain by 2025
Performance
In 2024, we continued our support in the
Kolo Nafoso program promoting sustain-
able shea butter and empowering women.
The Living Income Fund has been a suc-
cessful project. As a result of the Living
Income Fund in Côte d’Ivoire, 337 cocoa
farmers received an estimated 11 per cent
increase in incomes. The increase of
income has had proven positive impacts
for farming communities, including better
school attendance for their children, more
food security, improved access to health-
care, and increased economic resilience. In
mid-2024, the Living Income Fund project
ended, due to other partners pulling out of
the project. For that reason, Cloetta has
been investigating other potential partner-
ships and programs to improve living
conditions in our supply chain.
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S4 Consumers
and end-users
Our consumers are at the center of our business. Innovating for the future is a
key success factor in order for Cloetta to stay in tune with the changing demands.
By responding to different preferences and needs, we aim to ensure the accuracy
and significance of our product range. We are committed not only to meeting their
diverse tastes and preferences but also to ensure high standards of safety, quality,
and transparency in all our products.
Our approach and strategy
Consumers increasingly wish to satisfy
their individual needs. This means that they
want the option of both choosing products
and having access to products and services
that are individualised and can be adapted
for different occasions. Cloetta strives
to build trust by providing clearly labeled
ingredients, responsibly sourced materi-
als, and products that align with evolving
health expectations. This commitment is
integrated into our sustainability agenda,
ensuring that our approach to consumer
safety, product quality, and transparency is
supported by targeted initiatives.
Impact on consumers
We acknowledge that we may have an
impact on consumer’s health and safety,
given that our products are consumed by
people and that sugar has a documented
adverse effect on health. Certain prod-
ucts within Cloetta’s portfolio also contain
elevated levels of fat, presenting potential
health risks. The primary impact associ-
ated with a high fat intake include weight
gain and obesity due to the resulting calorie
consumption. Other impacts of consuming
products high in sugar could include tooth
damage, both through the direct effects of
sugar on dental health and by chewing on
hard pieces. Over the past decade, we have
focused on reducing sugar and calories
in our products, supporting World Health
Organisation (WHO) recommendations
to limit added sugar intake. Our approach
helps consumers make balanced choices
for themselves and the environment by con-
centrating on key areas such as creating
products with less sugar, launching sugar-
free options, enhancing portion messaging,
implementing responsible marketing, and
developing products with lower carbon
footprints through ingredient reformulation.
Quality management
and product safety
To control risks and enhancing consumer
satisfaction all Cloetta plants have strin-
gent quality and food safety management
systems in place which includes our Good
Manufacturing Practices (GMP) standard,
comply with food safety regulations and
are certified according to BRCGS interna-
tional Food standard. Cloetta has a central
Food Safety team appointed to safeguard
the business against external food safety
risks. This team is responsible for monitor-
ing emerging food safety challenges within
supply chains and keeping up to date with
new regulations.
Policies
Cloetta has established several policies to
ensure that the operational work within the
organisation is aligned with our ambitions
and strategy.
Responsible marketing
Cloetta is committed to responsible mar-
keting, guided by our Responsible Market-
ing Policy, which ensures that our practices
reflect our dedication to ethical standards
and positively influence the communities
we serve. Through this policy, we prioritise
transparency, fairness, and integrity in all our
marketing efforts, reinforcing our position as
a positive role model within the industry. Our
Responsible Marketing Policy is consistent
with current legislation in countries in which
Cloetta is present. The guideline also consid-
ers industry-specific agreements such as the
International Chamber of Commerce (ICC)
framework for responsible food and bever-
age communications, the EU Pledge and the
European Brands Association. We ensure
that all relevant employees are informed
of our policy and we train our existing and
future media and creative partners to
adhere to our Responsible Marketing Pol-
icy. The policy is reviewed annually, and
adjustments are made if necessary.
Factory location Certifications¹
Levice, Slovakia BRC Global Standard for Food Safety, IFS, SMETA
Ljungsbro, Sweden BRC Global Standard for Food Safety
Roosendaal, the Netherlands BRC Global Standard for Food Safety
Turnhout, Belgium BRC Global Standard for Food Safety, SMETA
Sneek, the Netherlands IFS, GMP, BRC Global Standard for Food Safety, SMETA
Dublin, Ireland BRC Global Standard for Food Safety, SMETA
1) The table presents certifications related to food safety and does not constitute a comprehensive list of Cloetta’s certifications.
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Food Safety and Quality Policy
Cloetta’s Food Safety and Quality Policy is
integral to our sustainability agenda. We are
dedicated to delivering high-quality prod-
ucts that are safe, authentic, transparently
labeled, and compliant with legal and cus-
tomer requirements. Central to this commit-
ment is a culture of food safety and quality,
where every employee understands their
responsibilities and feels empowered to
uphold these standards. Our comprehen-
sive management system, grounded in risk
assessment and continuous improvement,
includes adherence to GFSI-recognised
food safety standards, collaboration with
compliant suppliers, and proactive engage-
ment with customer feedback.
The President and CEO and the Group
Management Team at Cloetta hold ultimate
responsibility for ensuring the implementa-
tion of and compliance with the Responsi-
ble Marketing Policy and the Food Safety
and Quality Policy. For transparency, the
Responsible Marketing Policy is publicly
available on our website cloetta.com.
Relevant policies
• Cloetta Responsible Marketing Policy
• Food Safety and Quality Policy
Consumer engagement
At Cloetta, we actively engage with con-
sumers to ensure their needs, preferences,
and concerns are incorporated into our
business practices. Through a variety of
channels, including surveys, focus groups,
and direct feedback mechanisms, we
gather insights on consumer expectations
related to product safety, quality, sustain-
ability, and ethical business practices.
This feedback is systematically analysed
and integrated into our product develop-
ment and marketing strategies to enhance
transparency and align our offerings
with consumer demands. Our consumer
engagement efforts also help us identify
emerging risks and opportunities in areas
such as health, environmental impact,
and social responsibility, enabling us to
adapt and improve continuously. Cloetta
continuously monitors consumer trends
to enhance product development, using
insights from market analysis to shape new
concepts. Our innovation team develops
and tests prototypes, collecting feedback
from a dedicated consumer panel to ensure
the products meet customer expectations.
This feedback informs recipe adjustments,
enabling us to optimise products before
launch.
Material
Topic Sub-topic
Material
impact or risk Description Mitigation
S
Consumers
and end-
users
Personal safety of
consumers and/or
end-users
Negative impact Inadequate control over food traceability,
hygiene, and safety may affect consumers
by increasing the risk of product contami-
nation, allergic reactions, and other health
consequences.
• Source first-class raw materials aligned
with international quality standards.
• Conduct chemical and physical tests on
raw materials and finished products.
• Develop policies addressing key product
safety issues.
• Maintain plans for information dissemination
and product recalls in case of deficiencies.
Negative impact High sugar content in products is linked
to health issues like obesity and diabetes,
posing a risk as health-conscious consum-
ers demand natural ingredients and low-
sugar alternatives, potentially reducing
demand for traditional sweets.
• Provide clear information about product
content and calories.
• Develop lower-sugar and sugar-free
product options.
• Promote dental health alongside
confectionery offerings.
Protection
of children
Negative impact Misleading or excessive marketing tar-
geted at children can influence their con-
sumption habits unethically as children are
particularly susceptible to influence.
• Practice responsible marketing by
adhering to EU Pledge guidelines.
• No marketing efforts targeting children
to reduce risks of obesity and over-
consumption.
• Commit to being a positive role model
through ethical marketing practices.
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Remediate negative impacts
We have established processes to monitor
and respond to potential concerns regard-
ing product quality, safety, or other issues
impacting consumer well-being. Consum-
ers can communicate their feedback or
concerns through dedicated channels,
making sure that their voices are heard
and appropriate corrective actions are
taken. For more details, see page 105 in
section G1 Business Conduct.
Actions
Cloetta has implemented a series of strategic
actions aimed at mitigating risks and meeting
evolving consumer demands. These actions
focus on product innovation, responsible
marketing, and product safety and quality. In
2024, we focused on enhancing our Health
and Wellbeing strategy by reviewing current
practices and identifying areas for improve-
ment. As part of this process, we are also
working on setting targets that reflect our
material topics, ensuring a structured and
measurable approach to our commitments.
We expect to finalise the strategy and com-
plete target setting during 2025.
Listening to consumer trends
Cloetta continuously monitors consumer
preferences, particularly the growing
demand for healthier options, resulting in
innovative ways to incorporate healthier
ingredients while staying true to our prod-
uct identity. Furthermore, we have diversi-
fied our portfolio by offering vegan options
and lower-sugar or sugar-free alternatives,
such as within our Gott & Blandat and Red
Band ranges. Expanding our healthier
offerings helps reduce risks related to con-
sumer health concerns, while addressing
growing demand and benefiting from the
lower carbon footprint of plant-based
ingredients.
Commitment to natural ingredients
As part of our commitment to natural ingre-
dients, Cloetta was the first to introduce a
50 per cent real fruit candy concept, with
focus on product quality and taste. Through
our NAFNAC (No Artificial Flavors and No
Artificial Colors) initiative, we are actively
reducing artificial substances in our prod-
ucts. By only replacing artificial ingredients
when we can ensure the same high quality,
we mitigate the risk of diminishing con-
sumer satisfaction while aligning with health
and wellness trends.
Responsible marketing and
consumer communication
Cloetta is committed to responsible mar-
keting practices to minimise health risks,
particularly those related to childhood
obesity and over-consumption. In line with
the EU Pledge, we have made a deliber-
ate decision not to target children in our
marketing efforts, with 100 per cent of our
marketing focused on individuals over 13
years of age. Additionally, we are introduc-
ing portion control communication across
our packaging to help consumers make
informed decisions about portion sizes.
This initiative is designed to align with food
legislation guidelines and mitigate risks
associated with over-consumption. Portion
communication guidelines for chocolate
products were developed in 2024 as part of
Cloetta’s commitment to promoting respon-
sible consumption. These guidelines are
designed to provide clear information about
portion sizes, helping consumers make
informed choices. Starting in the coming
year, this information will be rolled out on
product packaging across markets.
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G1 Business conduct
Cloetta is committed to fostering a transparent and ethical business environment,
both internally and in our external partnerships. We prioritise high standards of
business conduct by proactively addressing risks related to corruption and bribery
through robust processes, targeted internal training, and close collaboration with
our business partners.
Strategy, policy and processes
Corporate Culture
Cloetta’s corporate culture centers on
accountability, compliance, and integrating
sustainability into governance. The Board
of Directors and CEO are ultimately respon-
sible for sustainability outcomes, with
the Group Management Team driving the
agenda and key functions ensuring imple-
mentation. The Board’s Audit Committee
oversees reporting and controls, aligning
with compliance and corporate objectives.
For more details, see section General infor-
mation on pages 72–73 and the Corporate
governance report on pages 46–61.
Policies
Cloetta maintains a comprehensive gov-
ernance structure to address business risk,
in particular as relates to its commitment
against corruption and bribery, the follow-
ing policies are relevant to highlight:
Code of Conduct
Cloetta is committed to maintaining a corpo-
rate culture that upholds lawful and ethical
business practices and effective govern-
ance. Through our Code of Conduct, we
promote values of integrity, transparency,
and accountability across all business units.
All our employees and representatives act-
ing on behalf of Cloetta are responsible for
adhering to our Code of Conduct. Defined
principles are designed to ensure that our
people understand and uphold the prin-
ciples and ethical standards essential to
Cloetta. Managers are expected to lead by
example, demonstrating exemplary conduct
and decision-making in line with our Code of
Conduct, while ensuring their teams receive
the necessary training to understand and
uphold these values. In the event of a breach,
or suspected breach, our employees should
immediately report to their line manager, a
suitable person or function within the com-
pany, such as HR, Legal or managers on
management level, or through our whistle-
blowing service.
Supplier Code of Conduct
The principles set out in Cloetta’s Code of
Conduct is cascaded into requirements
that apply towards Cloetta’s business part-
ners through Cloetta Supplier Code of Con-
duct. It ensures that third parties comply
with legal, ethical, environmental, and social
standards throughout all activities in our
supply chain. Our Supplier Code of Con-
duct outlines the minimum requirements for
responsible and ethical practices, which
all suppliers are expected to uphold in both
their actions and commitments. Minimum
requirements require that our business
partners respect human rights, maintain fair
labour conditions, engage in ethical busi-
ness practices (including refraining from
corruption or bribery), and continuously
improve environmental, health, and safety
performance. In the event of a breach, or
suspected breach, people employed at a
third party or other affected parties are able
to report through Cloetta’s whistleblowing
service or directly to their point of contact
within Cloetta.
Anti-Bribery and Anti-Corruption Policy
Through our governance policies we
uphold a strict zero-tolerance towards cor-
ruption across all business areas, including
activities conducted by third parties
acting on our behalf. The Anti-Bribery and
Anti-Corruption Policy applies to all busi-
ness dealings and transactions, regard-
less of the country of operation. It requires
that before offering or accepting any gifts,
hospitality, or donations, our employees
and third parties must verify compliance
with Cloetta’s guidelines and, if there are
any question shall be addressed with the
CFO, in order to ensure that our operations
remain ethical and fully transparent. The
consequences for breaching this policy can
lead to disciplinary actions against the rele-
vant employee or third party.
Fraud Policy
Through the Fraud Policy, in combination
with our Code of Conduct, Cloetta has set
out a strict prohibition for dishonest and/
or fraudulent activities, which includes
corruption and bribery. Together with the
Internal Control Framework Policy, a num-
ber of procedures and processes are set
in place to detect fraudulent activity with
the group through the policy. This allows
Cloetta to identify business conduct inci-
dents promptly and if issues are identified
they will be processed independently and
objectively by senior members of the cen-
tral finance functions. Through the policy,
procedures are also established for report-
ing fraudulent activities to Cloetta’s man-
agement and/or Audit Committee.
Internal control framework policy
The Internal control framework policy sets
out the principles for internal control within
Cloetta. The framework sets out principles
for detecting non-compliance with external
and internal rules, including fraud, corrup-
tion and bribery, and requires implemen-
tation of necessary control features which
includes both automated and manual con-
trols as well as other procedural controls to
identify non-compliance issues. Supervision
of the policy is conducted by the Board of
Directors via the Audit committee and the
design and implementation is delegated to
the Group Management Team who dele-
gates responsibility to relevant functions in
the company.
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Whistleblower policy
Through the Whistleblower Policy, Cloetta
provides a whistleblowing service acces-
sible to all our employees and external
parties, offering an anonymous platform
for reporting potential legal violations,
breaches of Cloetta’s Code of Conduct,
Cloetta’s Supplier Code of Conduct or its
sustainability or quality certificates. This
process ensures that misconduct can
be reported confidently and securely by
anyone who may be hesitant to use other
reporting channels. The service is availa-
ble globally via an online system managed
by an independent third party, ensuring
confidentiality and protection for the
whistleblower. Cloetta has established a
number of internal channels for reporting
of concerns and has held multiple trainings
for its internal investigators. Through the
whistleblowing policy, Cloetta also com-
mits, in-line with applicable EU legal require-
ments, to protect any whistleblowers from
retaliation. The policy also established a
requirement to report all whistleblowing
reports to the Audit Committee. Informa-
tion on whistleblowing is part of the Code of
Conduct trainings provided to employees
and is prominently displayed on the intranet.
Overview of policies
We conduct at least an annual review of our
policies and the described procedures to
ensure alignment with legal and other reg-
ulatory developments. In case of material
legislative updates during the year, policies
are reviewed to ensure compliance with
relevant legislation. The Board of Directors
bears the ultimate responsibility for ensur-
ing that the operations within the group are
conducted in compliance with all applica-
ble legislation. The President and CEO is
responsible for implementing and ensuring
compliance with all policies and guidelines
issued by the Board, including the Code of
Conduct, Supplier Code of Conduct and
the Anti-Bribery and Anti-Corruption Policy.
The Audit Committee of the Board of
Directors shall act to oversee the group’s
compliance with the Whistleblower Policy
and is informed of each report submitted.
For full transparency, these documents are
available publicly on our website
www.cloetta.com.
Relevant policies
• Cloetta Code of Conduct
• Cloetta Supplier Code of Conduct
• Cloetta Anti-Bribery and Anti-Corruption
Policy
• Fraud Policy
• Internal control framework policy
• Cloetta Whistleblower Policy and
guidelines
Animal welfare
Cloetta does not have any policy for animal
welfare, however, to the extent that raw
materials of animal origin are sourced, the
company requires its suppliers to adhere to
any applicable legislation in the production
and supply of such products.
Management of relationships with suppliers
Our work with suppliers is based on the prin-
ciples of Cloetta’s Supplier Code of Conduct.
For suppliers that supply direct material,
requirements relating to product quality and
food safety is set out in the Cloetta Quality
Agreement. Suppliers are obliged to adhere
to these governance documents and report
any changes in their operations that may lead
to deviations from agreements with us.
Screening and approval
process of new suppliers
During the screening process for potential
new suppliers, the procurement depart-
ment issues a questionnaire that includes
sustainability-related questions to evalu-
ate the supplier’s maturity and practices
in these areas. Suppliers must provide
detailed information and documentation
on their health, safety, and environmen-
tal practices to ensure compliance with
Cloetta’s sustainability standards. The sub-
mitted materials are thoroughly evaluated
and approved only if they meet Cloetta’s
requirements.
Monitoring of suppliers
Suppliers are monitored based on risks
related to procurement volume, procure-
ment spend, product category, as well as
geographical and social risks, and their own
performance over time. The objective is
for suppliers to continuously improve their
performance. Cloetta uses a questionnaire
to assess selected supplier’s adherence to
the Supplier Code of Conduct and related
criteria, verifying that required documen-
tation is in place and enabling corrective
action if non-conformities arise. We follow
up on suppliers through regular dialogue
and supplier evaluations. Our suppliers are
obligated to take action to respond to the
requirements of the Supplier Code of Con-
duct, and to incorporate the principles of
the code into their own operations. To make
sure all documents for existing suppliers
are valid we have established a process for
follow-up on certificates and policies.
Actions during 2024
In 2024, we prioritised identifying and
addressing sustainability risks in our supply
chain. Key initiatives included mapping envi-
ronmental, social, and governance impacts
for key high-risk commodities and enhanc-
ing buyer competence through targeted
training sessions. We developed a risk
Material
Topic Sub-topic
Material
impact or risk Description Mitigation
G
Business
conduct
Corruption
and bribery
Risks Corruption and bribery risks, primarily
significant in regions with inadequate
regulations enforcement. Risks can
emerge at various stages of the value
chain, leading to unethical practices,
increased costs, strained supplier
relations, and reputational harm.
• Cloetta has established processes for
addressing potential corruption issues
within the company. This includes training
sessions, guidelines, and comprehensive
policies. The Cloetta Code of Conduct
outlines these challenges for our work-
force, while the Supplier Code of Conduct
obligates suppliers to comply with ethical
business practices.
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assessment tool for the top 10 highest-risk
raw materials, evaluating sustainability
impacts and integrating this knowledge into
the procurement process. Additionally, new
sustainability requirements on disclosures
for health, safety, and the environment
were introduced into our supplier approval
processes.
As part of our long-term strategy,
we advanced our Sustainable Sourcing
roadmap for 2030. This year’s focus was
on refining existing processes and building
organisational competence, particularly
among buyers managing high-risk commod-
ities. Looking ahead, we plan to enhance
transparency and traceability across our
supply chain while maintaining our commit-
ment to continuous improvement.
Late payments practices
Cloetta is committed to timely payments
to all suppliers, including SMEs, as part
of its responsible sourcing principles.
While no specific policy exists to prevent
late payments, payment terms are set,
and processes are monitored to ensure
timely payments. These terms are com-
municated during contract negotiations
and are designed to be fair and supportive.
Payment terms comply with regulations
and guidelines aimed at preventing unfair
trading practices in the food supply chain.
These rules set maximum payment terms
for specific business categories and sizes,
ensuring fairness and legal adherence.
Prevention and detection of corruption or bribery
All business transactions carry a risk of cor-
ruption and bribery with the ultimate poten-
tial of impacting human rights and society
overall. Cloetta collaborates with partners
across various sectors and geographies,
some of which pose higher corruption risks.
Consequently, there is a risk of corruption
affecting Cloetta’s value chain, which we
actively work to mitigate. All employees,
including the Group Management Team,
undergo basic training in corruption and
bribery as part of Cloetta’s Code of Con-
duct. This training is mandatory for new
employees and is repeated throughout their
employment. Cloetta is currently evaluat-
ing opportunities for more in-depth train-
ing for employees in roles where the risk
of corruption may be higher, such as lead-
ership positions as well as sales and pro-
curement roles. Additionally, the company
is exploring ways to measure and monitor
the effectiveness of the training to ensure
continuous development and compliance.
To further reinforce anti-corruption meas-
ures, employees are expected to report
suspected breaches of our governance
policies. Reports can be made directly to
a line manager, the next-in-line manager,
or anonymously through the whistleblow-
ing service. Serious violations may lead to
legal proceedings, disciplinary action, or, in
severe cases, dismissal and reporting to the
police. Insights from reported incidents are
used to continuously strengthen Cloetta’s
anti-corruption practices.
Whether a suspected case of corruption
or bribery is reported, it is required that
all reports are investigated and brought
to the attention of the Board of Directors’
Audit Committee. Below, we go into further
details on the steps for reports submitted
through the whistleblowing channel.
Internal control includes all such policies,
processes and structures that ensures
that Cloetta is achieving its objective, to act
ethically and in compliance with applicable
laws. To this end, Cloetta has an internal
control framework based on the COSO¹
framework. The five elements can be sum-
marised as follow. The control environment
comprises the structure and the culture
creating the conditions for internal control
in line with Cloetta’s objectives. The risk
assessments made include inter alia risk for
fraud identified by the Fraud Policy. As part
of the control activities, each risk identified
is addressed with one or more control activ-
ities. Control activities occur at all levels of
the organisation and balances preventa-
tive and detective controls. These include
activities such as approvals, authorisations,
verifications, reconciliations, reviews of
operating performance, security of assets
and segregation of duties. There are estab-
lished information flows, both to internal and
external stakeholders. The effectiveness
of its internal control environment is con-
tinuously monitored, and actions are taken
to ensure continuous improvement of the
internal control environment. For informa-
tion about Internal control over financial
reporting, see pages 56–57.
Investigations submitted through the
whistleblowing system are investigated by
independent, internal investigators. Inves-
tigations notified based on the Fraud Policy
through the next-in-line manager or other
senior employees shall be notified to the
Director Finance & Accounting. All sus-
pected frauds, including corruption and
bribery matters, shall be informed to the
CFO. The Director for Finance & Account-
ing is responsible for further investigation in
cooperation with the CFO. In case of possi-
ble involvement of anyone within the man-
agement chain, there are procedures to
bypass such individuals to ensure an impar-
tial investigation.
Corruption and bribery incidents
Cloetta maintains a zero-tolerance policy
toward corruption and bribery. For 2024, no
confirmed incidents of corruption or bribery
were identified across Cloetta’s operations,
nor were any legal cases related to such
matters initiated or concluded. We received
4 reports in our whistleblowing channels
during 2024 whereof 0 reports fulfilled the
requirements, or were sufficiently substan-
tiated, to initiate a formal investigation under
our whistleblowing policy and 4 reports
which were deemed not to be formal
whistle blowing matters.
1) Committee of Sponsoring Organizations.
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Auditor’s Report on Limited assurance
of Specific Quantitative Metrics in
Cloetta AB’s (publ) Sustainability Report
and Statement Regarding the Statutory
Sustainability Report
To the General Meeting of Shareholders in Cloetta AB (publ), Reg. No. 556308-8144
Introduction
We have been engaged by the Board of Directors and the managing
director of Cloetta AB (publ) (“Cloetta”) to conduct a limited assur-
ance engagement in respect of specific quantitative metrics and the
reporting of the EU’s green taxonomy regulation Article 8 in Cloetta
AB’s sustainability report for the year 2024. Cloetta has defined the
scope of the sustainability report as pages 62–106 in this document.
The engagement also includes a statement regarding the statutory
sustainability report.
Responsibility of the Board of Directors
and the managing director
The Board of Directors and the managing director are responsible
for preparing the sustainability report, including the statutory sus-
tainability report and the specific quantitative metrics specified in
the section “ESRS Specific Quantitative Metrics,” in accordance
with applicable criteria and the Annual Accounts Act according to
the older version that was in effect before July 1, 2024. The criteria
are outlined on page 63 and consist of accounting and calculation
principles based on ESRS specific metrics and the EU’s green
taxonomy regulation Article 8.
This responsibility also includes the internal controls deemed
necessary to prepare a sustainability report that is free from
material misstatements, whether due to fraud or error.
ESRS Specific Quantitative Metrics
E1–5 Energy consumption and mix
(reported in section performance on page 77 and metrics on pages
78 and 79 in Cloetta AB’s Annual and Sustainability Report 2024)
• 37 Total energy consumption related to own operations
• 37 (a) Total energy consumption from fossil sources
• 37 (c) total energy consumption from renewable sources
disaggregated by:
– ii. consumption of purchased or acquired electricity, heat, steam,
and cooling from renewable sources
• 38 (b) Fuel consumption from crude oil and petroleum products
• 38 (c) Fuel consumption from natural gas
• 38 (e) Consumption of purchased or acquired electricity, heat,
steam, or cooling from fossil sources
• 39 Non-renewable energy production and renewable energy
production
E1–6 Gross Scopes 1, 2, 3 and Total GHG emissions
(reported in section performance on page 77 and metrics on pages
78–79 in Cloetta AB’s Annual and Sustainability Report 2024)
• 44 Total GHG emissions location based
• 44 Total GHG emissions market based
• 48 (a) Gross Scope 1 greenhouse gas emissions in metric tonnes of
CO
2
eq
• 49 (a) Gross location-based Scope 2 greenhouse gas emissions in
metric tonnes of CO
2
eq
• 49 (b) Gross market-based Scope 2 greenhouse gas emission in
metric tonnes of CO
2
eq
• 51 Gross Scope 3 greenhouse gas emissions
• 53 GHG emissions intensity (total GHG emissions per net revenue)
E5-5 Resource outflow
(reported in section our approach and strategy page 88, waste
management and recycling page 89, performance and metrics on
page 90 in Cloetta AB’s Annual and Sustainability Report 2024)
• 35 Description of the key products and materials that come out of
the undertaking’s production process
• 36 (c) The rates of recyclability content in products and their
packaging
• 37 (a) Total Waste generated
• 37 (b) Waste diverted from disposal, breakdown by hazardous and
non-hazardous waste and treatment type
• 37 (c) Waste directed to disposal, breakdown by hazardous and
non-hazardous waste and treatment type
• 37 (d) Non-recycled waste
• 37 (d) Percentage of non-recycled waste
• 39 Total amount of hazardous waste
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S1–6 Characteristics of the entity’s employees
(reported in section performance on page 95 and metrics on pages
96–97 in Cloetta AB’s Annual and Sustainability Report 2024)
• 50 (a) Number of employees by geographical areas (head count)
• 50 (a) Number of employees in countries with 50 or more employ-
ees representing at least 10% of total number of employees
• 50 (a) Average number of employees in countries with 50 or more
employees representing at least 10% of total number of employ-
ees
• 50 (b) The total number by head count or full time equivalent
(FTE) of
– Permanent employees, and breakdown by gender
– Temporary employees, and breakdown by gender
– Non-guaranteed hours employees, and breakdown by gender
• 50 (c) the total number of employees who have left the under-
taking during the reporting period and the rate of employee
turnover in the reporting period
• 51. For the information specified in point (b) of paragraph 50, the
undertaking disclose the breakdown by region.
• 52. The undertaking disclose by head count or full time equivalent
(FTE) the following information:
– full-time employees, and breakdowns by gender and by region;
and
– part-time employees, and breakdowns by gender and by region
S1–9 Diversity metrics
(reported in section performance on page 95 and metrics on pages
96-97 in Cloetta AB’s Annual and Sustainability Report 2024)
• 66 (a) Gender distribution in number of employees (head count) at
top management level
• 66 (a) Gender distribution in percentage of employees at top
management level
• 66 (b) Distribution of employees (head count) under 30 years old
• 66 (b) Distribution of employees (head count) between 30 and 50
years old
• 66 (b) Distribution of employees (head count) over 50 years old
S1–14 Health and safety metrics
(reported in section performance on page 95 and metrics on pages
96–97 in Cloetta AB’s Annual and Sustainability Report 2024)
• 88 (a) Percentage of people in its own workforce who are covered
by health and safety management system based on legal require-
ments and (or) recognised standards or guidelines
• 88 (b) Number of fatalities in own workforce as result of work-re-
lated injuries and work-related ill health
• 88 (b) Number of fatalities as result of work-related injuries and
work-related ill health of other workers working on undertaking’s
sites
• 88 (c) Number of recordable work-related accidents for own
workforce
• 88 (c) Rate of recordable work-related accidents for own workforce
• 88 (d) Number of cases of recordable work-related ill health of
employees
• 88 (e) with regard to the undertaking’s employees, the number of
days lost to work-related injuries and fatalities from work-related
accidents, work-related ill health and fatalities from ill health
• 90 The percentage of its own workers covered by a health and
safety management system which is based on legal requirements
and/or recognised standards or guidelines and which has been
internally audited and/or audited or certified by an external party
G1 –3 Prevention and detection of corruption and bribery
(reported on page 106 in Cloetta AB’s Annual and Sustainability
Report 2024)
• 18 (a) A description of the procedures in place to prevent, detect,
and address allegations or incidents of corruption and bribery
• 18 (b) whether the investigators or investigating committee are
separate from the chain of management involved in the matter
• 18 (c) the process, if any, to report outcomes to the administrative,
management and supervisory bodies
• 21 (a) the nature, scope and depth of anti-corruption and anti-
bribery training programmes offered or required by the undertaking
• 21 (b) the percentage of functions-at-risk covered by training
programmes
• 21 (c) the extent to which training is given to members of the
administrative, management and supervisory bodies.
G1–4 Incidents of corruption or bribery
(reported on page 106 in Cloetta AB’s Annual and Sustainability
Report 2024)
• 24 (a) Number of convictions for violation of anti-corruption and
anti- bribery laws
• 24 (a) Amount of fines for violation of anti-corruption and anti-
bribery laws.
Auditor’s Responsibility
Our responsibility is to express a conclusion with limited assurance
on Cloetta AB’s ESRS specific quantitative metrics and reporting of
the EU’s green taxonomy regulation Article 8, as well as a statement
on the statutory sustainability report.
We have conducted our limited assurance engagement in
accordance with ISAE 3000 (revised), Assurance Engagements
Other than Audits or Reviews of Historical Financial Information.
We have also conducted our examination of the statutory sus-
tainability report in accordance with FAR’s recommendation RevR
12, the Auditor’s Report on the Statutory Sustainability Report.
The audit firm applies ISQM 1 (International Standard on
Quality Management) and accordingly maintains a comprehen-
sive system of quality control including documented policies and
procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory
requirements. We are independent in relation to Cloetta AB (publ)
according to generally accepted auditing standards in Sweden
and have fulfilled our professional ethics responsibility according
to these requirements.
The procedures performed in a limited assurance engage-
ment and examination in accordance with RevR 12 do not allow us
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to obtain assurance that we would become aware of all significant
matters that might have been identified in an audit. The conclusion
expressed based on a limited assurance engagement and exami-
nation according to RevR 12, therefore, does not provide the same
level of assurance as a conclusion based on an audit has.
Our procedures are based on the criteria and accounting
principles chosen by the Board of Directors and the managing
director, as defined above. We consider these criteria to be suitable
for the preparation of the sustainability report, including the spe-
cific quantitative metrics specified in the section “ESRS Specific
Quantitative Metrics,” and reporting of the EU’s green taxonomy
regulation Article 8.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our conclusion below.
Conclusions
Based on our limited assurance procedures, nothing has come
to our attention that causes us to believe that Cloetta AB’s ESRS
specific quantitative metrics and reporting of the EU’s green
taxonomy regulation Article 8 are not, in all material respects,
prepared in accordance with the criteria and accounting principles
specified above by the Board of Directors and managing director.
Our statement does not cover forward-looking information on
pages 62–106.
A statutory sustainability report has been prepared.
Other Information
Our engagement does not cover information regarding previous
periods.
Stockholm, March 6, 2025
Öhrlings PricewaterhouseCoopers AB
Sofia Götmar-Blomstedt
Authorised Public Accountant
Partner in charge
Erik Bergh
Authorised Public Accountant
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Contents
Consolidated financial statements Page
Consolidated profit and loss account
111
Consolidated statement of comprehensive income
112
Consolidated balance sheet
113
Consolidated statement of changes in equity
114
Consolidated cash flow statement
115
Parent Company financial statements Page
Parent Company profit and loss account
150
Parent Company balance sheet
151
Parent Company statement of changes in equity
152
Parent Company cash flow statement
153
Notes to the consolidated financial statements Page
Note 1
General information and accounting and
valuation policies of the Group
116
Note 2
Business segments
123
Note 3
Breakdown of income
123
Note 4
Amortisation of intangible assets, depreciation of
property, plant and equipment and impairment of
non-current assets
124
Note 5
Expenses by type
124
Note 6
Personnel expenses and number of employees
124
Note 7
Remuneration of the Board
125
Note 8
Items affecting comparability
125
Note 9
Net financial items
126
Note 10
Income taxes
126
Note 11
Audit fees
126
Note 12
Intangible assets
127
Note 13
Property, plant and equipment
129
Note 14
Tax assets and liabilities
130
Note 15
Non-current financial assets
131
Note 16
Inventories
131
Note 17
Trade and other receivables
132
Note 18
Cash and cash equivalents
133
Note 19
Equity
134
Note 20
Earnings per share
135
Note 21
Borrowings
135
Note 22
Derivative financial instruments
138
Note 23
Pensions and other long-term employee benefits
139
Note 24
Provisions
142
Note 25
Trade and other payables
143
Note 26
Financial risks and financial risk management
143
Note 27
Financial instruments – measurement
categories and fair values
146
Note 28
Related-party transactions
147
Note 29
Leases
148
Note 30
Critical accounting estimates and judgements
148
Note 31
Changes in accounting policies
149
Note 32
Events after the balance sheet date
149
Notes to the Parent Company financial statements Page
Note P1
Accounting and valuation policies
of the Parent Company
154
Note P2
Breakdown of income
154
Note P3
Personnel expenses and number of employees
155
Note P4
Audit fees
155
Note P5
Net financial items
155
Note P6
Income taxes
155
Note P7
Deferred and current income tax
155
Note P8
Shareholdings in group companies
156
Note P9
Cash and cash equivalents
157
Note P10
Equity
157
Note P11
Borrowings
157
Note P12
Derivative financial instruments
158
Note P13
Accrued expenses and deferred income
158
Note P14
Pledged assets and contingent liabilities
158
Note P15
Related-party transactions
158
Proposed appropriation of earnings
159
Auditor’s report
160
Ten-year overview
164
Key ratios
166
Reconciliation alternative performance measures
168
Glossary
170
Definitions
171
Financial reports
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| Consolidated profit and loss account | |||
SEKm | Note | 2024 | 2023 |
Net sales | 2,3 | ||
Cost of goods sold | 4, 5, 6, 8 | - | - |
Gross profit | |||
Selling expenses | 4, 5, 6, 8 | - | - |
General and administrative expenses | 4, 5, 6, 8, 11 | - | - |
Operating profit | |||
Exchange differences on cash and cash equivalents | 9 | - | - |
Other financial income | 9 | ||
Other financial expenses | 9 | - | - |
Net financial items | - | - | |
| Profit before tax | |||
Income tax | 10 | - | - |
Profit for the year | |||
| Profit for the year attributable to: | |||
Owners of the Parent Company | |||
| Earnings per share, SEK | |||
Basic¹ | 20 | ||
Diluted¹ | 20 | ||
Number of shares outstanding at end of period ¹ | 20 | ||
Average number of shares (basic)¹ | 20 | ||
Average number of shares (diluted)¹ | 20 |
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 con-
ditions 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. On 28 November 2024,
Cloetta entered into a forward contract to repurchase 1,531,492 own shares to fulfill its future oibligations to deliver shares to the participants of the long-term share-based incentive plan, if
vesting conditions are met.
Consolidated financial
statements
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| Consolidated statement of comprehensive income | ||
SEKm | 2024 | 2023 |
Profit for the year | ||
| Other comprehensive income | ||
Remeasurement of defined benefit pension plans | - | - |
Income tax on remeasurement of defined benefit pension plans | ||
Items that will never be reclassified to profit or loss for the period | - | - |
Currency translation differences | - | |
Hedge of a net investment in a foreign operation | - | |
Income tax on hedge of a net investment in a foreign operation | - | |
Items that may be reclassified to profit or loss for the period | - | |
Total other comprehensive income | - | |
Total comprehensive income, net of tax | ||
| Total comprehensive income for the period attributable to: | ||
Owners of the Parent Company |
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| Consolidated balance sheet | |||
SEKm | Note | 31 Dec 2024 | 31 Dec 2023 |
| ASSETS | |||
| Non-current assets | |||
Intangible assets | 12 | ||
Property, plant and equipment | 13 | ||
Deferred tax assets | 14 | ||
Derivative financial instruments | 22 | ||
Other financial assets | 15 | ||
Total non-current assets | |||
| Current assets | |||
Inventories | 16 | ||
Trade and other receivables | 17 | ||
Current income tax assets | 14 | ||
Derivative financial instruments | 22 | | |
Cash and cash equivalents | 18 | ||
Total current assets | |||
Total assets | |||
| EQUITY AND LIABILITIES | |||
| Equity | |||
Share capital | 19 | ||
Other paid-in capital | 19 | ||
Treasury shares | 19 | - | - |
Foreign currency translation reserve | 19 | ||
Retained earnings including profit for the year | 19 | - | - |
Equity attributable to owners of the Parent Company | |||
| Non-current liabilities | |||
Long-term borrowings | 21 | ||
Deferred tax liabilities | 14 | ||
Derivative financial instruments | 22 | ||
Provisions for pensions and other long-term employee benefits | 23 | ||
Provisions | 24 | ||
Total non-current liabilities | |||
| Current liabilities | |||
Short-term borrowings | 21 | ||
Derivative financial instruments | 22 | ||
Trade and other payables | 25 | ||
Provisions | 24 | ||
Current income tax liabilities | 14 | ||
Total current liabilities | |||
Total equity and liabilities |
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Consolidated statement of changes in equity
| Foreign | ||||||
| Other | currency | |||||
| Share | paid-in | Treasury | translation | Retained | Total | |
| SEKm | capital | capital | shares | reserve | earnings | equity |
Balance at 1 January 2023 | - | - | ||||
| Comprehensive income | ||||||
Profit for the year | ||||||
Other comprehensive income | - | - | - | |||
Total comprehensive income for 2023 | - | |||||
| Transactions with owners | ||||||
Purchase of treasury shares | - | - | ||||
Share-based payments | ||||||
Dividend¹ | - | - | ||||
Total transactions with owners | - | - | - | |||
Balance at 31 December 2023 | - | - | ||||
| Comprehensive income | ||||||
Profit for the year | ||||||
Other comprehensive income | - | |||||
Total comprehensive income for 2024 | ||||||
| Transactions with owners | ||||||
Issue of treasury shares to employees | - | |||||
Forward contracts to repurchase own shares | - | - | ||||
Share-based payments | ||||||
Dividend¹ | - | - | ||||
Total transactions with owners | - | - | ||||
Balance at 31 December 2024 | - | - |
1) The dividend paid in 2024 and 2023 comprised an ordinary dividend of SEK 1 .0 0
Total equity is attributable to the owners of the Parent Company.
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| Consolidated cash flow statement | |||
SEKm | Note | 2024 | 2023 |
Operating profit | |||
| Adjustments for non-cash items | |||
Amortisation and depreciation of assets | 4 | ||
Impairment of assets | 4 | - | |
Provisions for pensions | - | - | |
Other provisions | 24 | - | |
Interest received | |||
Interest paid | - | - | |
Proceeds on derivative financial instruments | |||
Income tax paid | - | - | |
Cash flow from operating activities before changes in working capital | |||
| Changes in working capital | |||
Change in inventories | - | - | |
Change in trade and other receivables | - | - | |
Change in trade and other payables | - | ||
Cash flow from changes in working capital | - | - | |
| Cash flow from operating activities | |||
| Investing activities | |||
Investments in property, plant and equipment | 13 | - | - |
Investments in intangible assets | 12 | - | - |
Disposals of non-current assets (net of earn-out consideration) | 13 | ||
Cash flow from investing activities | - | - | |
Cash flow from operating and investing activities | |||
| Financing activities | |||
Proceeds from commercial papers | 21 | ||
Repayment of commercial papers | 21 | - | - |
Transaction costs paid | 21 | - | - |
Payment of lease liabilities | 21 | - | - |
Dividends paid | 19 | - | - |
Purchase of treasury shares | 19 | - | |
Cash flow from financing activities | - | - | |
Cash flow for the year | |||
| Cash and cash equivalents at beginning of year | 18 | ||
Cash flow for the year | |||
Exchange difference | - | - | |
| Cash and cash equivalents at end of year | 18 |
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Note 1 General information and accounting and valuation policies of the Group
Financial year
profit and loss accounts and balance sheets of the Group and the Parent
Company will be put for adoption before the Annual General Meeting on
10 April 2025.
Disclosures regarding changes in group structure
Liquidations and dissolutions
• On 13 February 2023, Cloetta Ireland Holding Ltd. was struck off.
• On 31 March 2023, the registration of Cloetta Holland B.V. - Singapore
branch was ceased.
Note P8 provides an overview of the Cloetta Group and specifies all group
companies and changes in the Group structure.
Guidelines on Alternative Performance Measures
In accordance with the ESMA (European Securities and Markets Author-
ity) guidelines on Alternative Performance Measures (APMs), additional
information on the use of APMs, including explanations of use and recon-
ciliation of the APMs to the most directly reconcilable measures in the
financial statements, has been included in these financial statements.
APMs presented in these financial statements should not be considered a
substitute for measures of performance in accordance with IFRS and may
not be comparable to similarly titled measures by other companies.
Notes to the consolidated financial statements
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Note 2 Business segments
See Note 1, section "Segment reporting" on pages 116-117 for further
explanation regarding identification of segments.
Cloetta’s operating segments are Branded packaged products and Pick &
mix.
| Branded | |||
| 2024 | packaged | Pick | |
| SEKm | products | & mix | Total |
Net sales | 6,219 | 2,394 | 8,613 |
Operating profit, adjusted | 740 | 170 | 910 |
Items affecting comparability | -103 | ||
Operating profit | 807 | ||
Net financial items | -148 | ||
Profit before tax | 659 | ||
Income tax | -182 | ||
Profit for the period | 477 |
| Branded | |||
| 2023 | packaged | Pick | |
| SEKm | products | & mix | Total |
Net sales | 6,153 | 2,148 | 8,301 |
Operating profit, adjusted | 786 | 13 | 799 |
Items affecting comparability | -64 | ||
Operating profit | 735 | ||
Net financial items | -165 | ||
Profit before tax | 570 | ||
Income tax | -133 | ||
Profit for the period | 437 |
| Net sales | ||
SEKm | 2024 | 2023 |
Branded packaged products | 6,219 | 6,153 |
Pick & mix | 2,394 | 2,148 |
Total | 8,613 | 8,301 |
| The breakdown of net sales by category is as follows: | |||
| Branded | |||
| 2024 | packaged | Pick | |
| SEKm | products | & mix | Total |
Candy | 3,659 | 1,724 | 5,383 |
Chocolate | 1,184 | 634 | 1,818 |
Pastilles | 779 | - | 779 |
Chewing gum | 406 | - | 406 |
Nuts | 57 | 36 | 93 |
Other | 134 | - | 134 |
Total | 6,219 | 2,394 | 8,613 |
| Branded | |||
| 2023 | packaged | Pick | |
| SEKm | products | & mix | Total |
Candy | 3,532 | 1,627 | 5,159 |
Chocolate | 1,112 | 481 | 1,593 |
Pastilles | 807 | - | 807 |
Chewing gum | 411 | - | 411 |
Nuts | 120 | 40 | 160 |
Other | 171 | - | 171 |
Total | 6,153 | 2,148 | 8,301 |
| The breakdown of net sales by country, allocated on the basis of the | ||
| customer's location is as follows: | ||
% | 2024 | 2023 |
Sweden | 30 | 30 |
Finland | 20 | 21 |
The Netherlands | 14 | 15 |
| Denmark | 11 | 10 |
| The UK | 5 | 5 |
| Norway | 6 | 6 |
| Germany | 7 | 6 |
| International Markets | 7 | 7 |
Total | 100 | 100 |
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Note 4 Amortisation of intangible assets,
depreciation of property, plant and
equipment and impairments of
non-current assets
See Notes 1 (II), (III), (IV), (X), (XI) and (XIV) for the accounting policy.
SEKm | 2024 | 2023 |
Other intangibles | 12 | 13 |
Land and buildings | 28 | 26 |
Machinery and equipment | 158 | 160 |
Right-of-use assets | 86 | 96 |
Total amortisation and depreciation | 284 | 295 |
Amortisation and depreciation have been allocated by function as follows: | ||
Cost of goods sold | 186 | 204 |
Selling expenses | 11 | 11 |
General and administrative expenses | 87 | 80 |
Total amortisation and depreciation | 284 | 295 |
| (Reversal of) Impairment | ||
Intangible assets | 91 | - |
Property, plant and equipment | -31 | -17 |
Total (reversal of) impairment | 60 | -17 |
| Depreciation charge right-of-use | ||
| assets by asset category: | ||
Land and buildings | 34 | 37 |
Transport | 41 | 35 |
Other equipment | 11 | 24 |
Total depreciation charge right-of-use asset | 86 | 96 |
SEKm | 2024 | 2023 |
| Raw materials and consumables used | 3,782 | 3,561 |
| including change in inventory of finished goods | ||
| and work in progress | ||
Personnel expenses (See Note 6) | 1,791 | 1,710 |
| Depreciation, amortisation and impairment | 344 | 278 |
| charges (See Note 4) | ||
Transportation expenses | 243 | 244 |
Lease expenses | 35 | 34 |
Advertising, promotion, selling and marketing expenses | 499 | 423 |
Energy expenses | 232 | 480 |
Maintenance expenses | 162 | 156 |
Other operating expenses | 718 | 680 |
Total operating expenses | 7,806 | 7,566 |
| Personnel expenses are specified as follows: | ||
SEKm | 2024 | 2023 |
| Salaries and remuneration | ||
| Group Management Team | ||
Sweden | 41 | 42 |
Other Of which, short-term variable compensation | 37 | 30 |
Sweden | 15 | 15 |
Other Pension costs Group Management Team | 11 | 9 |
Defined contribution plans | 8 | 8 |
| Total salaries, remuneration and pension | 86 | 80 |
| costs Group Management Team | ||
| Salaries and remuneration, other employees | ||
Sweden | 288 | 200 |
Other Pension costs, other employees | 936 | 896 |
Defined contribution plans | 96 | 87 |
Defined benefit plans | 6 | 6 |
| Total salaries, remuneration and pension | 1,326 | 1,189 |
| costs, other employees | ||
| Personnel expenses, all employees | ||
Total salaries, remuneration and pension costs | 1,412 | 1,269 |
Social security expenses | 308 | 281 |
Other personnel costs | 71 | 160 |
Total personnel expenses | 1,791 | 1,710 |
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SEKm | 2024 | 2023 |
Acquisitions, integration and restructurings | -103 | -64 |
of which: impairment non-current assets | -60 | 23 |
Total | -103 | -64 |
| Corresponding line in the consolidated | ||
| profit and loss account: | ||
Cost of goods sold | 25 | -48 |
Selling expenses | -3 | 1 |
General and administrative expenses | -125 | -17 |
Total | -103 | -64 |
| The average number of employees is as follows: | ||
# | 2024 | 2023 |
Group Management Team | 10 | 10 |
Other employees | 2,567 | 2,572 |
| Of whom, women | ||
Group Management Team | 1 | 2 |
Other employees | 1,347 | 1,378 |
| The average number of employees by country is as follows: | ||
# | 2024 | 2023 |
Sweden | 686 | 647 |
Slovakia | 712 | 739 |
The Netherlands | 512 | 512 |
Finland | 214 | 223 |
The UK | 114 | 122 |
Belgium | 113 | 116 |
Denmark | 117 | 112 |
Ireland | 63 | 65 |
Norway | 30 | 29 |
Germany | 9 | 9 |
Italy | 3 | 3 |
Other | 4 | 5 |
Total | 2,577 | 2,582 |
| Of whom, women: | ||
Sweden | 338 | 330 |
Slovakia | 430 | 452 |
The Netherlands | 175 | 180 |
Finland | 179 | 186 |
The UK | 85 | 93 |
Belgium | 25 | 24 |
Denmark | 70 | 68 |
Ireland | 24 | 24 |
Norway | 15 | 15 |
Germany | 6 | 6 |
Italy | 1 | 1 |
Other | - | 1 |
Total | 1,348 | 1,380 |
| The specification of the gender distribution is as follows: | ||
% | 2024 | 2023 |
| Percentage of women | ||
Board of Directors | 43 | 43 |
Group Management Team | 14 | 20 |
Other employees | 52 | 54 |
Note 7 Remuneration of the Board
| Costs incurred 2024 | Board | Committee | |
| SEK 000s | fees | fees | Total |
| Board Chairman | |||
Morten Falkenberg¹ | 533 | 67 | 600 |
Mikael Norman² | 250 | 33 | 283 |
| Board members | |||
Patrick Bergander | 335 | 167 | 502 |
Malin Jennerholm | 335 | 107 | 442 |
Pauline Lindwall | 335 | 100 | 435 |
Alan McLean Raleigh | 335 | 100 | 435 |
Camilla Svenfelt | 335 | 107 | 442 |
Mikael Svenfelt | 335 | 117 | 452 |
Total | 2,793 | 798 | 3,591 |
| Costs incurred 2023 | Board | Committee | |
| SEK 000s | fees | fees | Total |
| Board Chairman | |||
Mikael Norman | 743 | 100 | 843 |
| Board members | |||
Mikael Aru⁴ | 108 | 33 | 141 |
Patrick Bergander | 325 | 150 | 475 |
Malin Jennerholm | 325 | 67 | 392 |
Lottie Knutson⁴ | 108 | - | 108 |
Pauline Lindwall³ | 217 | - | 217 |
Alan McLean Raleigh | 325 | 100 | 425 |
Camilla Svenfelt | 325 | 100 | 425 |
Mikael Svenfelt | 325 | 150 | 475 |
Total | 2,801 | 700 | 3,501 |
| 1) Elected as per 9 April 2024 | |||
| 2) Resigned on 9 April 2024 | |||
| 3) Elected as per 4 April 2023 | |||
| 4) Resigned on 4 April 2023 |
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SEKm | 2024 | 2023 |
| Exchange differences in cash and | -35 | -43 |
| cash equivalents in foreign currencies | ||
Other financial income, third parties | 83 | 91 |
Other financial income at amortised cost | 83 | 91 |
| Realised gains on single | 28 | 37 |
| currency interest rate swaps | ||
Other financial income at fair value | 28 | 37 |
Total other financial income | 111 | 128 |
Interest expenses, third-party borrowings | -177 | -178 |
Interest expenses, third-party pensions | -9 | -9 |
Amortisation of capitalised transaction costs | -5 | -5 |
Other financial expenses, third parties | -14 | -13 |
Other financial expenses at amortised cost | -205 | -205 |
| Unrealised losses on single currency | -19 | -45 |
| interest rate swaps | ||
Other financial expenses at fair value | -19 | -45 |
Total other financial expenses | -224 | -250 |
Net financial items | -148 | -165 |
Note 10 Income taxes
See Notes 1 (VII) and (XII) for the accounting policy.
SEKm | 2024 | 2023 |
Current income tax | -226 | -84 |
Deferred income tax | 44 | -49 |
Total | -182 | -133 |
| The year’s income tax expense corresponds | ||
to an effective tax rate of, % | 27.6 | 23.3 |
| The difference between the effective tax rate and the applicable tax | ||
| rate in Sweden is attributable to the following items: | ||
SEKm | 2024 | 2023 |
Profit before tax | 659 | 570 |
Tax calculated at applicable tax rate for the Parent Company | -136 | -117 |
International rate differences | -1 | 0 |
Expenses not deductible for tax purposes | -3 | -2 |
Adjustments recognised in the period for tax of prior periods | -7 | 8 |
Effect of (substantially) enacted tax rate changes | -6 | - |
| Tax losses for which no deferred income tax | -20 | -18 |
| asset was recognised in previous years | ||
Other | -9 | -4 |
Income tax | -182 | -133 |
Reported effective tax rate, % | 27.6 | 23.3 |
Tax rate of Parent Company, % | 20.6 | 20.6 |
The applicable tax rate for the Parent Company is the enacted Swedish
corporate income tax rate.
The reported effective tax rate is based on the relative portion of the
group companies’ contributions to profit before tax and the applicable tax
rates and regulations in the countries concerned.
The OECD Pillar Two legislation was enacted in Sweden and has come
into effect on 1 January 2024. Pillar Two introduces a minimum effective
tax rate system where multinational groups with consolidated revenue
over EUR 750m in at least two out of the last four years are subject to a
minimum effective tax rate of 15 per cent. Cloetta's net sales for 2024
exceeded this threshold for the second consecutive year. As a result, the
Pillar Two legislation will be applicable for Cloetta as of 1 January 2025.
Cloetta applies the IAS12 exception to recognising and disclosing infor-
mation about deferred assets and liabilities related to Pillar Two income
taxes. The impact on Cloetta is expected to be immaterial. Cloetta is in
preparation to comply with the Pillar Two reporting requirements.
SEKm | 2024 | 2023 |
Fee for auditing services | 6 | 6 |
| Fee for other services | ||
Tax advice | - | - |
Audit-related advice | - | - |
Other | 0 | 0 |
Total other services | 0 | 0 |
Total audit fees | 6 | 6 |
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| See Notes 1 (X) and (XIV) for the accounting policy. | ||||
| Other | ||||
SEKm | Trademarks | Goodwill | intangibles | Total |
| 1 January 2023 | ||||
Acquisition or production costs | 3,301 | 2,823 | 275 | 6,399 |
Accumulated amortisation and impairments | -58 | -253 | -205 | -516 |
Book value at 1 January 2023 | 3,243 | 2,570 | 70 | 5,883 |
| Movements in 2023 | ||||
Additions | - | - | 2 | 2 |
Amortisation | - | - | -13 | -13 |
Exchange differences | -5 | -5 | 0 | -10 |
Total | -5 | -5 | -11 | -21 |
| 31 December 2023 | ||||
Acquisition or production costs | 3,296 | 2,817 | 246 | 6,359 |
Accumulated amortisation and impairments | -58 | -252 | -187 | -497 |
Book value at 31 December 2023 | 3,238 | 2,565 | 59 | 5,862 |
| Movements in 2024 | ||||
Additions | - | - | 1 | 1 |
Impairments | -90 | -1 | - | -91 |
Disposals | -57 | - | - | -57 |
Amortisation | - | - | -12 | -12 |
Exchange differences | 56 | 73 | 1 | 130 |
Total | -91 | 72 | -10 | -29 |
| 31 December 2024 | ||||
Acquisition or production costs | 3,205 | 2,893 | 250 | 6,348 |
Accumulated amortisation and impairments | -58 | -256 | -201 | -515 |
Book value at 31 December 2024 | 3,147 | 2,637 | 49 | 5,833 |
Estimated useful life | Indefinite | Indefinite | 3 years – | |
| indefinite |
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| For impairment testing of intangible assets with an indefinite useful | ||||
| life, the following assumptions have been used for each (group of) | ||||
| CGUs: | Terminal | Pre-tax discount rate | ||
| growth rate | including inflation | |||
% | 2024 | 2023 | 2024 | 2023 |
Sweden | 2.0 | 2.1 | 9.8 | 10.8 |
| Denmark & | 2.0 | 2.1 | 9.6 | 10.7 |
| Norway | ||||
Finland | 2.0 | 2.1 | 9.4 | 10.9 |
The Netherlands | 2.0 | 2.1 | 10.7 | 11.0 |
| The Netherlands & | 2.0 | 2.1 | 10.7 | 11.4 |
| Germany | ||||
| International | 2.0 | 2.1 | 11.2 | 12.7 |
| Markets & the UK | ||||
Group | 2.0 | 2.1 | 10.3 | 11.0 |
| The following summary specifies the allocation of goodwill to the different groups of cash-generating units | ||||||
| Norway & | International | The Netherlands | ||||
SEKm | Sweden | Denmark | Finland | Markets & the UK | & Germany | Total |
1 January 2023 | 540 | 516 | 1,143 | 53 | 318 | 2,570 |
Exchange rate differences | -1 | -1 | -2 | 0 | -1 | -5 |
31 December 2023 | 539 | 515 | 1,141 | 53 | 317 | 2,565 |
Impairments | -1 | - | - | - | - | -1 |
Exchange rate differences | 13 | 11 | 38 | 2 | 9 | 73 |
31 December 2024 | 551 | 526 | 1,179 | 55 | 326 | 2,637 |
| The following summary specifies the allocation of trademarks to the different cash-generating units | |||||
| Other (corpo- | |||||
SEKm | Sweden | Finland | The Netherlands | rate assets) | Total |
1 January 2023 | 1,545 | 576 | 1,061 | 61 | 3,243 |
Exchange rate differences | - | -1 | 2 | -6 | -5 |
31 December 2023 | 1,545 | 575 | 1,063 | 55 | 3,238 |
Impairments | -90 | - | - | - | -90 |
Disposal | -57 | - | - | - | -57 |
Exchange rate differences | - | 19 | 30 | 7 | 56 |
31 December 2024 | 1,398 | 594 | 1,093 | 62 | 3,147 |
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Note 13 Property, plant and equipment
| Land and | Machinery and | Assets under | Right-of-use | ||
| SEKm | buildings | equipment | construction | assets | Total |
| 1 January 2023 | |||||
Acquisition or production costs | 978 | 4,281 | 174 | 354 | 5,787 |
Accumulated depreciation and impairments | -495 | -3,504 | -8 | -199 | -4,206 |
Book value at 1 January 2023 | 483 | 777 | 166 | 155 | 1,581 |
| Movements in 2023 | |||||
Additions | - | - | 280 | 97 | 377 |
Disposals | - | - | - | -2 | -2 |
Transfers | 29 | 172 | -201 | - | - |
Depreciation | -26 | -160 | - | -96 | -282 |
Reversals of impairments | 9 | 2 | 6 | - | 17 |
Exchange differences | -1 | 1 | -6 | 1 | -5 |
Total | 11 | 15 | 79 | 0 | 105 |
| 31 December 2023 | |||||
Acquisition or production costs | 1,004 | 4,324 | 248 | 340 | 5,916 |
Accumulated depreciation and impairments | -510 | -3,532 | -3 | -185 | -4,230 |
Book value at 31 December 2023 | 494 | 792 | 245 | 155 | 1,686 |
| Movements in 2024 | |||||
Additions | 3 | - | 159 | 61 | 223 |
Disposals | - | -16 | - | -2 | -18 |
Transfers | 9 | 253 | -262 | - | - |
Depreciation | -28 | -158 | - | -86 | -272 |
Reversals of impairments | 17 | 13 | 1 | - | 31 |
Exchange differences | 14 | 19 | 9 | 3 | 45 |
Total | 15 | 111 | -93 | -24 | 9 |
| 31 December 2024 | |||||
Acquisition or production costs | 1,045 | 4,323 | 154 | 313 | 5,835 |
Accumulated depreciation and impairments | -536 | -3,420 | -2 | -182 | -4,140 |
Book value at 31 December 2024 | 509 | 903 | 152 | 131 | 1,695 |
Estimated useful life | Buildings: 20–50 years | 3–55 years | N/A | 1–35 years | |
| Land: Indefinite |
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Note 14 Tax assets and liabilities
See Notes 1 (VII) and (XII) for the accounting policy.
| Movements of deferred tax assets and liabilities per category are specified as follows: | ||||||
| Tax losses | Property plant | Intangible | Provisions | Other assets | ||
| SEKm | carried forward | and equipment | assets | (incl. pensions) | and liabilities | Total |
| 1 January 2023 | 92 | -137 | -719 | 46 | -123 | -841 |
| Profit and loss account (charge)/ | -18 | 16 | -26 | -15 | 12 | -31 |
| credit for the year | ||||||
| Adjustments recognised in the period | 20 | 7 | -5 | -26 | -14 | -18 |
| for tax of prior periods | ||||||
Other (including exchange differences) | 2 | -1 | 2 | 9 | 1 | 13 |
31 December 2023 | 96 | -115 | -748 | 14 | -124 | -877 |
| Profit and loss account (charge)/ | -10 | 5 | 72 | 0 | -11 | 56 |
| credit for the year | ||||||
| Adjustments recognised in the period | 14 | -4 | -9 | -1 | -5 | -5 |
| for tax of prior periods | ||||||
Effect of rate changes | - | -6 | -1 | - | - | -7 |
Other (including exchange differences) | 2 | -3 | -13 | 0 | -4 | -18 |
31 December 2024 | 102 | -123 | -699 | 13 | -144 | -851 |
| Right-of-use assets are broken down as follows: | ||
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
Land and buildings | 59 | 85 |
Transport | 65 | 50 |
Other equipment | 7 | 20 |
Total | 131 | 155 |
See Note 4 for the breakdown of the depreciation of right-of-use assets
per category.
| The estimated useful lives of machinery | |
| and equipment can be further specified as follows: | |
| Estimated useful life | |
Production lines | 5–35 years |
Packaging lines | 5–25 years |
Production equipment | 5–55 years |
IT hardware | 3–5 years |
Fixtures | 5 years |
Furniture | 5–10 years |
Production vehicles | 7–15 years |
Vehicles | 5 years |
Other | 5–10 years |
| The breakdown of property, plant and equipment | ||
| and intangible assets by country is as follows: | ||
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
Sweden | 2,319 | 2,485 |
Finland | 1,804 | 1,757 |
The Netherlands | 1,696 | 1,615 |
Slovakia | 733 | 720 |
Other countries | 976 | 971 |
Total | 7,528 | 7,548 |
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| Deferred tax assets and liabilities are broken down as follows: | ||
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
Deferred tax assets | 59 | 23 |
Deferred tax liabilities | -910 | -900 |
Total | -851 | -877 |
| Deferred tax assets are expected to be realised as follows: | ||
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
| Deferred tax asset to be realised | 58 | 22 |
| after more than 12 months | ||
| Deferred tax asset to be realised | 1 | 1 |
| within 12 months | ||
Total | 59 | 23 |
| The composition of deferred tax assets for deductible temporary | ||||
| differences and tax losses carried forward is as follows: | ||||
31 Dec 2024 | 31 Dec 2023 | |||
| Recog- | Not rec- | Recog- | Not rec- | |
| SEKm | nised | ognised | nised | ognised |
| Deductible | 75 | - | 76 | - |
| temporary | ||||
| differences | ||||
Tax losses carried | 102 | 104¹ | 96 | 72 |
| forward | ||||
Total | 177 | 104 | 172 | 72 |
| 1) The not recognised amount for tax losses carry forward of SEK 104m is related to the UK. |
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
| Deferred tax liability to be recovered | 874 | 829 |
| after more than 12 months | ||
| Deferred tax liability to be recovered | 36 | 71 |
| within 12 months | ||
Total | 910 | 900 |
| The recognised deferred tax liability includes a provision for an uncertain |
Note 16 Inventories
See Note 1 (XV) for the accounting policy.
| Inventories for own use and resale comprise: | ||
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
Raw materials and consumables | 453 | 378 |
Work in progress | 78 | 90 |
Finished goods and goods for resale | 805 | 824 |
Total | 1,336 | 1,292 |
| Movements in the provision for obsolete inventory are as follows: | ||
SEKm | 2024 | 2023 |
At 1 January | 14 | 12 |
Additions for impairment of inventories | 60 | 20 |
| Inventories written off during the year | -11 | -4 |
| as obsolete | ||
Unused amounts reversed | -3 | -14 |
Exchange differences | 1 | 0 |
At 31 December | 61 | 14 |
Recognition of provisions for impairment of inventories and unused
amounts reversed are included in "Raw materials and consumables used
including change in inventory of finished goods and work in progress" in
the expenses by type in Note 5.
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
Deposits | 4 | 3 |
Total | 4 | 3 |
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The individual trade receivables for which provisions were made relate to
uncollectible receivables that are not covered by credit insurance.
Other receivables contain the deferred selling price related to the
divestment of the Nutisal brand of SEK 2m, measured at fair value. See
Note 27 for more details on fair value measurements.
| The age analysis of the trade receivables including loss allowances is as follows: | ||||||
31 Dec 2024 | 31 Dec 2023 | |||||
| Gross carrying | Loss | Net carrying | Gross carrying | Loss | Net carrying | |
| SEKm | amount | allowance | amount | amount | allowance | amount |
Current (not past due) | 1,002 | - | 1,002 | 948 | - | 948 |
Up to 30 days past due | 44 | - | 44 | 25 | - | 25 |
30 to 60 days past due | 1 | - | 1 | 3 | -1 | 2 |
60 to 90 days past due | -1 | - | -1 | 0 | - | 0 |
Over 90 days past due | 1 | -1 | - | 27 | -23 | 4 |
Total | 1,047 | -1 | 1,046 | 1,003 | -24 | 979 |
The other receivables and prepaid expenses and accrued income do not
contain any provided amounts.
As per 31 December 2024, trade receivables of SEK 44m (31) were past
due but not provided for. These relate to a number of customers for whom
there is no recent history of default.
Trade receivables in an amount of SEK 126m (105) are covered by credit
insurance.
The carrying amounts are assumed to approximate the fair values of
trade receivables and other receivables. The maximum exposure to credit
risk at the reporting date is the carrying amount of each class of receiva-
bles mentioned above, adjusted for the part covered by credit insurance.
| The carrying amounts of trade receivables are denominated in | ||
| the following currencies: | ||
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
Euro | 394 | 362 |
Swedish krona | 289 | 272 |
Danish krone | 251 | 245 |
Great Britain pound | 56 | 58 |
Norwegian krone | 41 | 29 |
US dollar | 8 | 5 |
Other currencies | 7 | 8 |
Total | 1,046 | 979 |
| The breakdown of prepaid expenses and accrued income | ||
| is as follows: | ||
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
Prepaid IT expenses | 16 | 12 |
Prepaid rent, insurance and lease charges | 10 | 8 |
Prepaid personnel-related expenses | 2 | 4 |
Prepaid marketing expenses | 2 | 1 |
Prepaid deposits | 1 | 0 |
Other prepaid expenses | 22 | 27 |
Other accrued income | 11 | 0 |
Total | 64 | 52 |
Note 17 Trade and other receivables
See Note 1 (XIII) for the accounting policy.
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
Trade receivables before loss allowances | 1,047 | 1,003 |
Loss allowances for trade receivables | -1 | -24 |
Trade receivables | 1,046 | 979 |
Other receivables | 146 | 58 |
Prepaid expenses and accrued income | 64 | 52 |
Total | 1,256 | 1,089 |
| Movements in the loss allowance for trade receivables are as follows: | ||
SEKm | 2024 | 2023 |
At 1 January | 24 | 5 |
| Provision for impairment of trade | 2 | 24 |
| receivables | ||
Trade receivables written off during the year as uncollectible | -22 | -3 |
Unused amounts reversed | -4 | 0 |
Exchange differences | 1 | -2 |
At 31 December | 1 | 24 |
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Note 18 Cash and cash equivalents
See Note 1 (XIII) for the accounting policy.
| The item cash and cash equivalents in the consolidated cash flow | ||
| statement and consolidated balance sheet consists of the following: | ||
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
Cash and cash equivalents | 953 | 658 |
Total | 953 | 658 |
All cash and cash equivalents are available on demand.
Cloetta AB (publ) has a Multicurrency Zero Balancing Cash Pool
(MZBCP) enabling the company and its subsidiaries to use the funds
available as deposited in the bank in one or more currencies for the pur-
pose of efficient liquidity management and daily payments in the ordinary
course of business. The MZBCP provides the possibility to make
withdrawals from accounts held by the bank in different currencies and in
different countries without the necessary funds being available in the
respective currency, provided that the corresponding funds are available
considering the balances on all accounts in the MZBCP, and any amounts
available for this purpose pursuant to any credit facility and/or intraday
revolving facility agreed upon separately. The MZBCP is based on, and
connects, accounts in local account structures in different countries in
which group companies participate as sub-account holders.
| The following table shows the carrying amounts of recognised offsetting of financial assets and liabilities relating to the MZBCP: | ||||||
| Related financial instruments | ||||||
| that are not offset | ||||||
| Gross amounts | Offsetting negative cash | Net amount | Cash balances | Other loans | ||
| 2024 | of financial | balances by positive cash | presented in the | outside | from credit | Net |
| SEKm | instruments | balances in cash pools | balance sheet | cash pools | institutions | amount |
Cash and cash equivalents | 3,858 | -2,952 | 906 | 47 | - | 953 |
Total assets | 3,858 | -2,952 | 906 | 47 | - | 953 |
Loans from credit institutions | 2,952 | -2,952 | - | - | 2,232 | 2,232 |
Total liabilities | 2,952 | -2,952 | - | - | 2,232 | 2,232 |
| Related financial instruments | ||||||
| that are not offset | ||||||
| Gross amounts | Offsetting negative cash | Net amount | Cash balances | Other loans | ||
| 2023 | of financial | balances by positive cash | presented in the | outside | from credit | Net |
| SEKm | instruments | balances in cash pools | balance sheet | cash pools | institutions | amount |
Cash and cash equivalents | 4,805 | -4,196 | 609 | 49 | - | 658 |
Total assets | 4,805 | -4,196 | 609 | 49 | - | 658 |
Loans from credit institutions | 4,196 | -4,196 | - | - | 2,187 | 2,187 |
Total liabilities | 4,196 | -4,196 | - | - | 2,187 | 2,187 |
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| The Annual General Meeting (AGM) approved the following | ||
| dividend on 9 April 2024 and 4 April 2023. | ||
2024 | 2023 | |
Dividend per share, SEK | ||
Total dividend, SEKm | ||
| Dividend as a percentage of profit | 65 | 104¹ |
| for the previous year | ||
Payment date | April 2024 | April 2023 |
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| See Note 1 (XIII) for accounting policies. | |||||
| 31 Dec 2024 | Remaining term | Remaining term | Remaining term | Remaining term | |
| SEKm | < 1 year | 1–2 years | 2–5 years | > 5 years | Total |
Loans from credit institutions | - | 2,232 | - | - | 2,232 |
Capitalised transaction costs | -4 | -4 | -2 | - | -10 |
Commercial papers | 149 | - | - | - | 149 |
Accrued interest | 2 | - | - | - | 2 |
Lease liabilities | 56 | 34 | 34 | 12 | 136 |
Total | 203 | 2,262 | 32 | 12 | 2,509 |
| 31 Dec 2023 | Remaining term | Remaining term | Remaining term | Remaining term | |
| SEKm | < 1 year | 1–2 years | 2–5 years | > 5 years | Total |
Loans from credit institutions | - | 800 | 1,387 | - | 2,187 |
Capitalised transaction costs | -5 | -5 | -3 | - | -13 |
Commercial papers | 149 | - | - | - | 149 |
Accrued interest | 2 | - | - | - | 2 |
Lease liabilities | 74 | 36 | 39 | 10 | 159 |
Total | 220 | 831 | 1,423 | 10 | 2,484 |
| The calculation of basic and diluted earnings per share is based on the following profit attributable to ordinary shareholders and | ||
| the weighted-average number of ordinary shares outstanding: | ||
2024 | 2023 | |
Profit for the year, attributable to ordinary shareholders (in SEKm) (basic and diluted) | 477 | 437 |
Number of issued ordinary shares at 1 January | 288,619,299 | 288,619,299 |
Effect of forward contract to repurchase own shares | -138,086 | - |
Effect of purchase of treasury shares | -2,791,063 | -3,224,382 |
Weighted average number of ordinary shares during the year before dilution | 285,690,150 | 285,394,917 |
Effect of share-based payments | 95,977 | 255,901 |
Weighted average number of ordinary shares during the year after dilution | 285,786,127 | 285,650,818 |
Basic earnings per share, SEK | 1.67 | 1.53 |
Diluted earnings per share, SEK | 1.67 | 1.53 |
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| Long-term | Short-term | ||
| SEKm | borrowings | borrowings | Total |
Balance at 1 January 2023 | 2,277 | 207 | 2,484 |
| Changes from financing cash flows | |||
Repayment of lease liabilities | -27 | -61 | -88 |
Transaction costs paid | -4 | - | -4 |
Proceeds from commercial papers | - | 593 | 593 |
Repayment of commercial papers | - | -594 | -594 |
Total changes from financing cash flows | -31 | -62 | -93 |
| Other changes | |||
Capitalisation transaction cost | 4 | - | 4 |
Additions to lease liabilities | 17 | 74 | 91 |
Early termination of lease liabilities | -2 | - | -2 |
Amortisation of capitalised transaction costs | - | 5 | 5 |
Interest expenses, third-party borrowings | 99 | 6 | 105 |
Interest paid | -99 | -6 | -105 |
Exchange differences on borrowings | -1 | -4 | -5 |
Total other changes | 18 | 75 | 93 |
Balance at 31 December 2023 | 2,264 | 220 | 2,484 |
| Changes from financing cash flows | |||
Repayment of lease liabilities | -5 | -74 | -79 |
Transaction costs paid | -4 | - | -4 |
Proceeds from commercial papers | - | 594 | 594 |
Repayment of commercial papers | - | -593 | -593 |
Total changes from financing cash flows | -9 | -73 | -82 |
| Other changes | |||
Additions to lease liabilities | 5 | 56 | 61 |
Early termination of lease liabilities | -2 | - | -2 |
Amortisation of capitalised transaction costs | - | 5 | 5 |
Interest expenses, third-party borrowings | 108 | 6 | 114 |
Interest paid | -108 | -7 | -115 |
Exchange differences on borrowings | 48 | -4 | 44 |
Total other changes | 51 | 56 | 107 |
Balance at 31 December 2024 | 2,306 | 203 | 2,509 |
| The carrying amounts and fair value of short-term | ||||
| and long-term borrowings are as follows: | ||||
Fair value | Carrying amount | |||
| 31 Dec | 31 Dec | 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 | 2024 | 2023 |
| Loans from credit | 2,232 | 2,187 | 2,232 | 2,187 |
| institutions | ||||
Commercial papers | 149 | 149 | 149 | 149 |
Total | 2,381 | 2,336 | 2,381 | 2,336 |
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| The Group credit facility at reporting date relates to: | ||||||
Outstanding amount | Interest percentage | Applicable margin¹ | ||||
SEKm | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
| Single currency term loan of | 1,432 | 1,387 | Variable EURIBOR | Variable EURIBOR + | 1.05% | 1.05% |
| nominal EUR 125m (125) | + fixed applicable | fixed applicable mar- | ||||
| margin, with zero- | gin, with zero-floor | |||||
| floor | ||||||
| Single currency term loan of nominal | 800 | 800 | Variable STIBOR | Variable STIBOR + | 0.95% | 0.95% |
| SEK 800m (800) | + fixed applicable | fixed applicable mar- | ||||
| margin, with zero- | gin, with zero-floor | |||||
| floor | ||||||
| Commercial papers of nominal | 149 | 149 | Fixed margin per | Fixed margin per | 3.08% | 4.85% |
| SEK 1,000m (1,000) | issued paper | issued paper | ||||
| Multicurrency credit revolving loan | - | - | Variable IBOR + | Variable IBOR + fixed | 1.15% | 1.15% |
| of EUR 50m (50) | fixed applicable | applicable margin, | ||||
| margin, with zero- | with zero-floor | |||||
| floor | ||||||
Credit revolving loan of EUR 10m (10) | - | - | Variable EURIBOR | Variable EURIBOR | 0.70% | 0.70% |
| + fixed applicable | + fixed applicable | |||||
| margin, with a floor | margin, with a floor of | |||||
| of 0,20% | 0,20% | |||||
| Single currency term loan of | - | - | Variable EURIBOR | Variable EURIBOR + | 1.55% | 1.55% |
| EUR 100m (100) | + fixed applicable | fixed applicable mar- | ||||
| margin, with zero- | gin, with zero-floor | |||||
| floor | ||||||
| Multicurrency credit revolving loan of | - | - | Variable IBOR + | Variable IBOR + fixed | 1.35% | 1.35% |
| EUR 60m (60) | fixed applicable | applicable margin, | ||||
| margin, with zero- | with zero-floor | |||||
| floor | ||||||
Total Group credit facility | 2,381 | 2,336 | ||||
Capitalised transaction costs | -10 | -13 | ||||
Lease liabilities | 136 | 159 | ||||
Accrued interest | 2 | 2 | ||||
Total borrowings | 2,509 | 2,484 | ||||
1) Applicable margin on credit facilities based on the net/debt ebitda covenant at reporting date. Margin on commercial papers based on the weighted average rate on the outstanding commercial papers at reporting date |
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31 Dec 2024 | 31 Dec 2023 | |||
SEKm | Assets | Liabilities | Assets | Liabilities |
| Non-current | ||||
| Single currency interest | 1 | 4 | 5 | 8 |
| rate swaps | ||||
Total non-current | 1 | 4 | 5 | 8 |
| Current | ||||
Forward contract to repurchase own shares | - | 40 | - | - |
| Single currency interest | 4 | 5 | 18 | 1 |
| rate swaps | ||||
Total current | 4 | 45 | 18 | 1 |
Total | 5 | 49 | 23 | 9 |
| The following table shows the combined notional principal amounts of the outstanding single currency interest rate swaps | |||||||
Notional principal amounts | Fixed interest currency rates | Future periods covered | |||||
31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 | ||
STIBOR Interest rate swaps | SEKm | - | 800 | - | 3.0380% | - | Q1 2024 - Q2 2024 |
STIBOR Interest rate swaps | SEKm | 100 | 100 | 3.8750% | 3.8750% | Q1 2025 - Q2 2025 | Q3 2024 - Q2 2025 |
STIBOR Interest rate swaps | SEKm | 50 | - | 1.7975% | - | Q1 2025 - Q2 2026 | - |
STIBOR Interest rate swaps | SEKm | 400 | - | 1.7975% | - | Q3 2025 - Q2 2026 | - |
EURIBOR Interest rate swaps | EURm | - | 35 | - | 0.0830% | - | Q1 2024 - Q2 2024 |
EURIBOR Interest rate swaps | EURm | 60 | 60 | 1.9160% | 1.9160% | Q1 2025 - Q2 2025 | Q1 2024 - Q2 2025 |
EURIBOR Interest rate swaps | EURm | 35 | 35 | 1.9160% | 1.9160% | Q1 2025 - Q2 2025 | Q3 2024 - Q2 2025 |
EURIBOR Interest rate swaps | EURm | 70 | 70 | 3.0810% | 3.0810% | Q3 2025 - Q2 2026 | Q3 2025 - Q2 2026 |
| The following table shows the movements in forward contracts to | ||
| repurchase own shares since 1 January 2024: | ||
| Number of shares | ||
Date | Contract 1 | |
Balance at | 1 Jan 2024 | - |
New forward contract to repurchase own shares | 28 Nov 2024 | 1,531,492 |
| Balance at | 31 Dec 2024 | 1,531,492 |
| Price, SEK 26.2632 |
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Note 23 Pensions and other long-term employee benefits
See Notes 1 (V) and (XIX) for the accounting policy.
Group companies use various post-employment schemes, including both
defined benefit and defined contribution pension plans.
A defined contribution plan is a pension plan under which the Group
pays fixed contributions to a separate entity. The Group has no legal or
constructive obligations to pay further contributions, even if the fund does
not hold sufficient assets to pay all employees the benefits relating to
employee service in the current and prior periods. Defined benefit plans
define an amount of pension benefit that an employee will receive upon
retirement, usually dependent on one or more factors such as age, years
of service and compensation. The defined benefit schemes in industry
sector pension funds, which are held by pension funds that are not able to
provide company-specific or reliable information, are accounted for as
though they were defined contribution schemes. In the event of a deficit in
these pension funds, the company has no obligation to provide supple-
mentary contributions, other than higher future contributions.
For defined contribution plans, the Group pays contributions to publicly
or privately administered pension insurance plans on a mandatory, con-
tractual or voluntary basis. The Group has no further payment obligations
once the contributions have been paid.
The Group has a number of defined benefit pension plans in Sweden,
the Netherlands, Belgium, Finland, Germany and Norway that relate to pen-
sion and other long-term benefit schemes.
For the defined benefit pension plan in the Netherlands, the Group
accounts as though this were a defined contribution scheme since suffi-
cient information is not available to enable the Group to account for the
plan as a defined benefit plan. Cloetta complies with UFR 10 for reporting
plans with multiple employers. Sufficient information is not available, since
asset administration of the fund is not designed to allocate the total assets
of the fund to the participating companies. In the event of a deficit in this
pension fund, the Group has no obligation to provide further contributions
other than higher future contributions. Monthly premiums are average pre-
miums expressed as a percentage of the pension calculations basis and
should, as a minimum, cover the cost of the fund. The minimum pension
premium is determined in accordance with the actuarial and business note
of the fund. In the event of liquidation of the fund, an amount that is suffi-
cient to cover defined benefits will be secured. In the event of a deficit in
the fund at the moment of liquidation, the defined benefits will be propor-
tionally reduced taking into consideration Article 134 of the Dutch Pension
Act. Contributions to the plan for the next annual year are expected to
amount to SEK 52m (49). These are split into employer contributions of
SEK 35m (33) and employee contributions of SEK 17m (16). At year-end
2024, the coverage of the pension fund was 121.7 per cent (119.5).
At 31 December 2024, the main defined benefit plans in the Group were:
Sweden – ITP2 plan:
The ITP2 plan covers employees born before 1979. Benefits provided in
the old defined benefit plan include a final pay-based retirement pension.
This plan is an unfunded defined benefit plan. The ITP plan benefit formula
provides pension benefits as a percentage of salary. Benefits are reduced
proportionally if the expected years of service within the plan, are less than
30 years, irrespective of employer. ITP plan benefits vested with former
employers are indexed according to the consumer price index.
Finland – Pohjola Life Insurance:
This plan is an insured voluntary final salary pension plan. It was estab-
lished on 31 December 2005 when the liabilities and assets of Merijal
Pension Foundation and Leaf Pension Foundation were transferred to
Pohjola Life Insurance Company.
Norway:
The Norwegian subsidiary has one plan, which is insured in a life insurance
company. This funded plan, together with the national pension scheme,
provides an old-age pension of a maximum of 66 per cent of final salary.
The plan includes a widow(er)’s pension equal to 60 per cent of the old-age
pension and children’s pension equal to 50 per cent of the old-age pension.
Members who become disabled will receive a disability pension linked to
the old-age pension they would have received with their present salary.
| The total pensions and other long-term employee benefits | ||
| are determined as follows: | ||
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
Obligation for pension benefits | -378 | -382 |
Total | -378 | -382 |
| The net liability recognised in the balance sheet is determined | ||
| as follows: | ||
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
Present value of funded obligations | 64 | 62 |
Fair value of plan assets | -74 | -67 |
Deficit/(Surplus) of funded plans | -10 | -5 |
Present value of unfunded obligations | 374 | 377 |
| Impact of minimum funding | 14 | 10 |
| requirements/asset ceiling | ||
Net liability in the balance sheet | 378 | 382 |
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| Movements in the combined net defined benefit obligations and other long-term employee benefits over the year are as follows: | ||||
| Present value | Fair value of | Asset ceiling | ||
| SEKm | of obligation | plan assets | impact | Total |
1 January 2023 | 398 | -65 | 12 | 345 |
Current Service cost | 4 | - | - | 4 |
Interest expense/(income) | 11 | -2 | 0 | 9 |
Total amount recognised in profit or loss | 15 | -2 | 0 | 13 |
| Remeasurements: | ||||
Return on plan assets, excluding amounts included in interest expense/(income) | - | 0 | - | 0 |
Losses from change in demographic assumptions | 24 | - | - | 24 |
Experience (gains)/losses | 19 | - | -2 | 17 |
Total remeasurements recognised in other comprehensive income | 43 | 0 | -2 | 41 |
Exchange differences | - | 1 | 0 | 1 |
| Contributions: | ||||
Employers | - | -18 | - | -18 |
| Payments from plans: | ||||
Benefit payments | -17 | 17 | - | - |
31 December 2023 | 439 | -67 | 10 | 382 |
Current Service cost | 6 | - | - | 6 |
Interest expense/(income) | 11 | -2 | 0 | 9 |
Total amount recognised in profit or loss | 17 | -2 | 0 | 15 |
| Remeasurements: | ||||
Return on plan assets, excluding amounts included in interest expense/(income) | - | -3 | - | -3 |
Losses from change in demographic assumptions | 1 | - | - | 1 |
Losses from change in financial assumptions | -9 | - | - | -9 |
Experience (gains)/losses | 7 | - | - | 7 |
Change in asset ceiling, excluding amounts included in interest expense | - | - | 5 | 5 |
Total remeasurements recognised in other comprehensive income | -1 | -3 | 5 | 1 |
Exchange differences | 2 | -1 | -1 | 0 |
| Contributions: | ||||
Employers | - | -20 | - | -20 |
Plan participants | 0 | 0 | - | - |
| Payments from plans: | ||||
Benefit payments | -19 | 19 | - | - |
Curtailments | 0 | - | - | 0 |
31 December 2024 | 438 | -74 | 14 | 378 |
The Group expects to pay SEK 18m (19) in contributions to its defined benefit plans in 2025.
| The defined benefit obligation and plan assets are composed by country as follows: | ||||||||
| Present value | Fair value of | Impact of | Defined benefit | |||||
| of obligation | plan assets | asset ceiling | obligation | |||||
| 31 Dec | 31 Dec | 31 Dec | 31 Dec | 31 Dec | 31 Dec | 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
Sweden | 373 | 375 | -19 | -15 | 8 | 6 | 362 | 366 |
Norway | 9 | 10 | -15 | -14 | 6 | 4 | - | - |
Finland | 24 | 25 | -21 | -21 | - | - | 3 | 4 |
Other countries | 32 | 29 | -19 | -17 | - | - | 13 | 12 |
Total | 438 | 439 | -74 | -67 | 14 | 10 | 378 | 382 |
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| The significant actuarial assumptions are as follows: | ||
| 31 Dec | 31 Dec | |
| Weighted average percentage | 2024 | 2023 |
Discount rate | 3.47 | 3.28 |
Expected rate of future salary increases | 2.26 | 2.14 |
| Expected rate of future increase | 1.73 | 1.64 |
| for benefits in payment | ||
Expected long-term inflation rate | 1.78 | 1.68 |
Assumptions regarding future mortality are based on actuarial advice in
accordance with published statistics and experience in each territory.
| These assumptions translate into an average life expectancy in years | ||||
| for a pensioner retiring at the age of 65: | ||||
2024 | 2023 | |||
Years | Sweden | Others | Sweden | Others |
Retiring at the end of the reporting period: | ||||
– Male | 22 | 21 | 22 | 21 |
– Female | 24 | 25 | 24 | 24 |
Retiring 20 years after the end of the reporting period: | ||||
– Male | 43 | 40 | 43 | 35 |
– Female | 45 | 45 | 45 | 40 |
At 31 December 2024 the weighted average duration of the defined bene-
fit obligation was 14.82 years (15.16 years).
| The sensitivity of the combined net defined benefit obligations and other long-term employee benefits to changes in the weighted principal | |||||
| assumptions is as follows: | |||||
| Impact on defined benefit obligation | |||||
2024 | 2023 | ||||
SEKm | Change in assumptions | Increase | Decrease | Increase | Decrease |
Discount rate | 1%-point | -17 | 23 | -18 | 23 |
Salary growth rate | 1%-point | 3 | -2 | 4 | -3 |
Pension growth rate | 1%-point | 16 | -14 | 16 | -17 |
| Increase by | Decrease by | Increase by | Decrease by | ||
| % | 1 year | 1 year | 1 year | 1 year | |
Life expectancy | 3.55 | -3.54 | 3.01 | -3.02 |
The sensitivity analyses above are based on a change in one assumption
while holding all other assumptions constant. In practice, this is unlikely to
occur, and changes in some of the assumptions may be correlated. When
calculating the sensitivity of the defined benefit obligation to significant
actuarial assumptions, the same method has been applied as when calcu-
lating the pension liability recognised in the statement of financial position.
Plan assets for both 2023 and 2024 are 100 per cent comprised of
insurance contracts.
| The expected maturity analysis for undiscounted combined net defined | ||
| benefit obligations and other long-term employee benefits is as follows: | ||
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
Less than 3 years | - | - |
Between 3–7 years | 32 | - |
Between 7–15 years | 182 | 216 |
Over 15 years | 224 | 223 |
Total | 438 | 439 |
Total pension costs for defined benefit plans amounting to SEK 15m (13) are
included in costs of goods sold, selling expenses, general and administrative
expenses and financial income and expenses, in the profit and loss account.
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| Movements in provisions, excluding pension benefits | |||||||
| and other long-term employee benefits, are specified as follows: | |||||||
SEKm | Re organisation | Other | Total | SEKm | Re organisation | Other | Total |
1 January 2023 | 113 | 0 | 113 | 1 January 2024 | 168 | 6 | 174 |
Additions | 63 | 6 | 69 | Additions | 8 | 5 | 13 |
Utilisations | -6 | - | -6 | Utilisations | -6 | -5 | -11 |
Unused amounts reversed | -1 | - | -1 | Unused amounts reversed | -9 | 0 | -9 |
Undiscounting | 1 | - | 1 | Undiscounting | 2 | - | 2 |
Exchange differences | -2 | 0 | -2 | Exchange differences | 5 | - | 5 |
31 December 2023 | 168 | 6 | 174 | 31 December 2024 | 168 | 6 | 174 |
| Analysis of total provisions | Analysis of total provisions | ||||||
Non-current | 160 | Non-current | 163 | ||||
Current | 14 | Current | 11 | ||||
Total | 174 | Total | 174 |
| Movements in the number of shares for the share-based long-term | ||
| incentive plans are as follows: | ||
Number of shares in thousands | 2024 | 2023 |
At 1 January | 3,171 | 2,075 |
Granted for new plans | 1,582 | 1,298 |
Vested plans | -723 | - |
Released | -740 | -202 |
At 31 December | 3,290 | 3,171 |
See Note 23 for details about pensions and other long-term employee
benefits.
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| Trade and other payables are specified as follows: | ||
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
Trade payables | 648 | 717 |
Other taxes and social security expenses | 149 | 152 |
Pension liabilities | 13 | 27 |
Other liabilities | 7 | - |
Accruals and deferred income | 756 | 689 |
Total | 1,573 | 1,585 |
| Accruals and deferred income are specified as follows: | ||
| 31 Dec | 31 Dec | |
| SEKm | 2024 | 2023 |
Accrued personnel-related expenses | 315 | 274 |
Accrued customer bonuses and discounts | 266 | 255 |
| Other accrued expenses | 175 | 160 |
| and deferred income | ||
Total | 756 | 689 |
Note 26 Financial risks and financial risk management
Through its activities, the Group is exposed to a variety of financial risks,
such as financial market risks (including currency risk, interest rate risk,
cash flow interest rate risk and price risk), credit risk and liquidity risk. The
Group’s overall risk management programme focuses on the unpredict-
ability of financial markets and seeks to minimise potential adverse effects
on the Group’s financial performance.
Financial risks are managed by the Group treasury department
under policies approved by the Board of Directors. The Group treasury
department identifies, evaluates and, if applicable, hedges financial risks
in close cooperation with the Group’s operating entities. The Board of
Directors provides written principles for overall risk management, as well
as written policies covering specific areas, such as foreign exchange risk,
interest rate risk, credit risk, use of derivative financial instruments and
non-derivative financial instruments and investment of excess liquidity.
The primary market and financial risks are described in detail below.
Financial market risk
Currency risk
The Group is primarily active in the European Union, Norway and the UK.
The Group’s currency risk mainly relates to positions and future trans-
actions in euros (EUR), Danish kroner (DKK), Norwegian kroner (NOK),
US dollars (USD) and British pounds (GBP).
The Group has major investments in foreign operations whose net
assets are exposed to foreign currency translation risk.
This has resulted in a reduction in the volatility of net financial items caused
by revaluation of monetary assets and liabilities as of the date of initial
application of hedge accounting.
The Group’s investment in trademarks in Cloetta Ireland Ltd, Cloetta
Suomi Oy, Cloetta Holland B.V. and Cloetta Slovakia s.r.o. is hedged by net
euro-denominated loans (carrying amount: EUR 161m (162)) which miti-
gates the foreign currency translation risk on these trademarks. The fair
value of the loans was EUR 161m (162). The loans are designated as a net
investment hedge. The effectiveness of the hedge is tested and docu-
mented on a quarterly basis. No ineffectiveness has been recognised
from the net investment hedge. The effect of the net investment hedge in a
foreign operation is recognised in other comprehensive income. At
31 December 2024, the cumulative effect of the net investment hedge in a
foreign operation amounted to SEK -370m (-257), net of tax, and was
reported as part of the retained earnings within equity.
exchange risk arises when future commercial transactions or recognised
assets or liabilities are denominated in a currency that is not the entity’s
functional currency. At reporting date, the Group had no forward foreign cur-
rency contracts to hedge the currency risk of the USD and GBP. To lower
the revaluation exposure in the operating result for legal entities, the Group
can enter into currency swaps to cover up to a maximum of 100% of the
exposure of that legal entity for a period of maximum 12 months.To lower the
revaluation exposure on financing positions the Group continuously moni-
tors the financing positions in foreign currencies within the Group and
enters into foreign exchange transactions to keep the annualised revalua-
tion exposure within the agreed upon maximum level of SEK 50m. The
Group is in compliance with the defined objectives for currency risks.
During 2023 and 2024, exchange rates have been volatile and as a
result impacted Cloetta’s financial performance significantly.
In the 2024 financial year, if the Swedish krona had weakened/strength-
ened by 10 per cent against the euro with all other variables held constant,
then profit for the year would have been approximately SEK 41m (27) higher/
lower. This is the result of the foreign exchange gains/losses on translation of
all euro-denominated trading in Europe. Including the revaluation effect of
cash and cash equivalents, borrowings and other monetary positions in sub-
sidiaries, the net profit would have been in total approximately SEK 25m (35)
higher/lower. The total effect on equity would have been SEK 125m (94)
lower/higher. This is mainly due to the Group applying hedge accounting.
The exposure of translating the financial statatements of subsidiaries into
the presentation currency of the Group is not included in the sensitivity
analyis. The currency risk attached to the transactions in the other curren-
cies is not significant as the amounts involved are not significant to the total
Group.
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Interest rate risk
The Group is exposed to interest rate risk on the interest-bearing non-
current and current liabilities.
The Group is exposed to the consequences of variable interest rates on
the single-currency term loan of EUR 125m and the single-currency term
loan of SEK 800m and as soon as the EUR 100m single-currency term
loan and the EUR 120m revolving facility are drawn down. The interest
yields on commercial papers develop in line with the STIBOR interest rate
development. In relation to fixed interest liabilities, it is exposed to market
values, which is not a significant risk for the Group. The Group’s objective
Group covered 1.5 years of its exposure to interest rate fluctuations and
has covered for on average 52 per cent of the interest rate exposure on the
drawn facilities. The maturity is below the minimum as defined in the policy
pending the reassessment of the Greenfield facility and the impact of this
reassessment on the refinancing of Facility A and B which matures on
30 June 2026. The Group is therefore intentionally deviating from the
defined objective for interest rate risks.
The sensitivity of the profit for the year and equity to changes in
interest rates is as follows:
| Sensitivity analysis interest rate | ||||
| Impact of changes in interest rates | ||||
| on profit before tax | ||||
2024 | 2023 | |||
| Profit | Profit | |||
| SEKm | before tax | Equity | before tax | Equity |
-2%-point | 14 | 11 | 12 | 10 |
-1%-point | 7 | 6 | 6 | 5 |
1%-point | -7 | -6 | -6 | -5 |
2%-point | -14 | -11 | -12 | -10 |
The analysis considers the effects of single currency interest rate swaps
and the impact of negative interest rates.
Credit terms for customers are determined individually in the different
markets. Concentrations of credit risk with respect to trade receivables
are limited, due to the size and diversity of the Group’s customer base.
Diversity exists amongst other things in the size of customers, country of
origin, size of outstanding receivables and types of customers. Part of the
trade debtors for International Markets, Ireland, the UK, Germany and the
Netherlands and smaller trade debtors in Finland is insured via credit risk
insurances. Trade receivables in an amount of SEK 126m (105) are cov-
ered by credit insurance.
In addition, receivable balances are monitored on an ongoing basis with
the result that the Group’s exposure to bad debts is not significant. The
Group’s historical experience of collecting receivables is that credit risk is
considered to be low across all markets. However, in 2023, trade receiva-
bles of SEK 24m were provided for in relation to the bankruptcy of one of
Cloetta's largest retail customers in the UK and subsequently written off in
2024.
| The Group uses several banks (range of most used banks varies between AA- and A+ (long-term) | ||||||
| and A-1 and A-2 (short-term)) and has a revolving facility available | ||||||
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| The following table presents the carrying amounts and fair values of the Group’s | ||||||||
| financial assets and financial liabilities, including their levels in the fair value hierarchy: | ||||||||
Carrying amount | Fair value | |||||||
| Other | ||||||||
| Financial | financial | |||||||
| assets at | liabilities at | |||||||
| SEKm | Mandatorily | amortised | amortised | |||||
| 31 Dec 2024 | at FVTPL | cost | cost | 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 | - | 1,056 | - | 1,056 | ||||
Contingent earn-out consideration and deferred selling price | 2 | - | - | 2 | - | 2 | - | 2 |
Single currency interest rate swaps | 5 | - | - | 5 | - | 5 | - | 5 |
Cash and cash equivalents | - | 953 | - | 953 | ||||
Total assets | 7 | 2,009 | - | 2,016 | - | 7 | - | 7 |
| Financial liabilities | ||||||||
Loans from credit institutions | - | - | 2,232 | 2,232 | ||||
Commercial papers | - | - | 149 | 149 | ||||
Forward contract to repurchase own shares | - | - | 40 | 40 | - | 2 | - | 2 |
Single currency interest rate swaps | 9 | - | - | 9 | - | 9 | - | 9 |
Trade and other payables, excluding other taxes and social security payables | - | - | 1,424 | 1,424 | ||||
Total liabilities | 9 | - | 3,845 | 3,854 | - | 11 | - | 11 |
Carrying amount | Fair value | |||||||
| Other | ||||||||
| Financial | financial | |||||||
| assets at | liabilities at | |||||||
| SEKm | Mandatorily | amortised | amortised | |||||
| 31 Dec 2023 | at FVTPL | cost | cost | 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 |
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Note 28 Related-party transactions
All group companies mentioned in Note P8 are considered to be related
parties. Transactions between group companies are eliminated upon
consolidation.
In the context of this financial report, and aside from the subsidiaries
of Cloetta AB (publ), the Board of Directors, Group Management Team
and key employees that have significant influence over the Group and
AB Malfors Promotor and its subsidiaries are regarded as related parties.
In 2023 and 2024, no transactions other than dividend payments occurred
between Cloetta AB (publ) including its subsidiaries and AB Malfors
Promotor including its subsidiaries.
Transactions with Board of Directors, Group Management Team
and key employees
For information about salaries and remuneration of the Board of Directors
and Group Management Team, see pages 46-55 and Notes 6, 7 and 23.
The Group has no receivables on the Board of Directors, Group Manage-
ment Team or key employees. In 2023 and 2024, share-based long-term
incentive plans were approved by the AGM. Total costs excluding social
security charges related to the share-based long-term incentive plans that
were recognised amount to SEK 18m (21), of which SEK 14m (14) is related
to the Group Management Team.
Other liabilities to the Group Management Team and key employees
consist of customary personnel-related liabilities. No other transactions
other than dividend payment and employee and Board remuneration
occurred between Cloetta AB (publ) including its subsidiaries and the
Board of Directors, Group Management Team and key employees.
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Note 29 Leases
See Note 1 (XX) for the accounting policy.
SEKm | 2024 | 2023 | Recognised in: |
| Recognised expenses for leases under IFRS 16 amount to: | |||
Interest expense | -5 | -4 | net financial items, in the profit and loss account |
| Expense relating to short-term leases, where | -4 | -4 | cost of goods sold, selling expenses and general and |
| no right-of-use asset has been recognised | administrative expenses, in the profit and loss account | ||
| Expense relating to leases of low-value assets that are not | -1 | -1 | cost of goods sold, selling expenses and general and |
| short-term leases | administrative expenses, in the profit and loss account | ||
| Expense relating to variable lease payments | -30 | -29 | cost of goods sold, selling expenses and general and |
| not included in lease liabilities | administrative expenses, in the profit and loss account | ||
Total cash outflow for leases | -84 | -91 | cash flow from operating activities and financing activities, |
| in the cash flow statement |
See Note 13 for further details on right-of-use assets and Note 21 for
further details on lease liabilities.
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Note 32 Events after the
balance sheet date
Dividend proposal
The Board proposes a dividend for 2024’s result of SEK 1.10 (1.00) per
share.
Greenfield investment
On 10 February 2025, Cloetta decided that it will not proceed with the
greenfield investment due to the previously communicated increased risk
relating to energy supply and the still on-going permitting process, and as
the reassessment has confirmed the ability to develop Cloetta’s long-term
financial and supply network flexibility without the greenfield plant.
The financial effects of this decision have not been recognised at 31
December 2024. The decision will result in a one-time net gain in the first
quarter of 2025 on account of released long-term restructuring provisions
for an amount of approx. SEK 150m and reversed impairments on prop-
erty, plant and equipment of approx. SEK 40m, partially offset by the
impairment of the capitalised project and borrowing cost.
Both the release of the restructuring provisions and the reversed
impairments will be charged to the cost of goods sold.
The total capitalised project cost per 31 December 2024 recognised on
the balance sheet as property, plant and equipment under construction
amounts to approx. SEK 50m. These capitalised costs will be charged to
the costs of goods sold in the first quarter of 2025.
Approx. SEK 10m of prepaid commitment fees and borrowing costs will
be charged to the net financial items in the first quarter of 2025.
The net gain of SEK 140m on the operating result will be identified as an
item affecting comparability and will, together with the charge to the net
financial items, not lead to additional cash flows in 2025.
There were no other significant after the end of the reporting period.
Note 31 Changes in accounting policies
New and amended standards and interpretations adopted by the Group
No new standards have been issued that are effective for annual periods
beginning on or after 1 January 2024.
A number of amendments to standards and interpretations are effective
for annual periods beginning on or after 1 January 2024. None of these have a
material impact on the consolidated financial statements of the Group.
New standards and amendments to standards not yet adopted
A number of amendments to standards and interpretations are effective
for annual periods beginning after 1 January 2024, which have not been
applied in preparing these consolidated financial statements. None of
these are expected to have a material impact on the consolidated financial
statements of the Group, with the exception of the following:
IFRS 18 Presentation and disclosure of information in financial
statements
IFRS 18 will replace IAS 1 Presentation of financial statements, introducing
new requirements that will help to achieve comparability of the financial
performance of similar entities and provide more relevant information and
transparency to users. Even though IFRS 18 will not impact the recognition
or measurement of items in the financial statements, its impacts on pres-
entation and disclosure are expected to impact the financial statements in
the following areas:
• The structure of the consolidated profit and loss account, including the
classification and presentation of items of income and expenses and
the inclusion of new subtotals in the profit and loss account
• The definition and disclosure of management-defined performance
measures (MPMs)
• The aggregation and disaggregation of information in the financial
statements
• The classification of dividend and interest cash flows in the cash flow
statement
• The separate presentation of goodwill on the face of the balance sheet.
Management is currently assessing the detailed implications of applying
the new standard on the group’s consolidated financial statements. The
mandatory effective date of the new standard will be 1 January 2027, with
retrospective application required.
There are no other IFRSs or IFRIC interpretations that are not yet
effective that are expected to have a material impact on the Group.
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Parent Company profit and loss account
SEKm Note 2024 2023
Net sales P2 137 113
Gross profit 137 113
General and administrative expenses P3, P4 -177 -143
Operating loss -40 -30
Exchange differences on borrowings and cash P5 0 -3
Other financial income P5 506 200
Other financial expenses P5 -166 -168
Net financial items 340 29
Dividends received from group companies P10 1,909 -
Profit/loss before tax 2,209 -1
Income tax P6 -58 -2
Profit/loss for the year 2,151 -3
Profit/loss for the year corresponds to comprehensive income for the year.
Primary activities
Cloetta AB’s primary activities include head office functions such as group-wide management and administration.
Parent Company
financial statements
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Parent Company balance sheet
SEKm Note 31 Dec 2024 31 Dec 2023
ASSETS
Non-current financial assets
Deferred tax asset P7 29 29
Shareholdings in group companies P8 4,884 4,884
Derivative financial instruments P12 1 -
Receivables from group companies P15 523 497
Total non-current financial assets 5,437 5,410
Current assets
Derivative financial instruments P12 1 4
Receivables from group companies P15 471 159
Current income tax assets P7 - 6
Other receivables 68 2
Cash and bank P9 0 0
Total current assets 540 171
Total assets 5,977 5,581
EQUITY AND LIABILITIES
Equity
Share capital 1,443 1,443
Share premium 2,712 2,712
Treasury shares -59 -79
Retained earnings including profit/loss for the year -40 -1,864
Equity attributable to owners of the Parent Company
P10
4,056 2,212
Non-current liabilities
Borrowings P11 798 799
Payables to group companies P15 156 150
Derivative financial instruments P12 0 -
Deferred tax liability P7 - 1
Provisions 2 1
Total non-current liabilities 956 951
Current liabilities
Borrowings P11 149 149
Payables to group companies P15 669 2,233
Trade payables 1 1
Other current liabilities 18 11
Derivative financial instruments P12 41 1
Accrued expenses and deferred income P13 34 23
Current income tax liabilities P7 53 -
Total current liabilities 965 2,418
Total equity and liabilities 5,977 5,581
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Parent Company statement of changes in equity
SEKm
Share
capital
Share
premium
reserve
Treasury
shares
Retained
earnings Total equity
Balance at 1 January 2023 1,443 2,712 -78 -1,597 2,480
Comprehensive income
Loss for the year - - - -3 -3
Total comprehensive income for 2023 - - - -3 -3
Transactions with owners
Purchase of treasury shares - - -1 - -1
Share-based payments - - - 21 21
Dividend¹ - - - -285 -285
Total transactions with owners - - -1 -264 -265
Balance at 31 December 2023 1,443 2,712 -79 -1,864 2,212
Comprehensive income
Profit for the year - - - 2,151 2,151
Total comprehensive income for 2024 - - - 2,151 2,151
Transactions with owners
Forward contracts to repurchase own shares - - - -40 -40
Issue of treasury shares to employees - - 20 -20 -
Share-based payments - - - 18 18
Dividend¹ - - - -285 -285
Total transactions with owners - - 20 -327 -307
Balance at 31 December 2024 1,443 2,712 -59 -40 4,056
1) The dividend paid in 2024 comprised a dividend of SEK 1.00 (1.00) per share.
Profit/loss for the year corresponds to comprehensive income for the year.
Total equity is attributable to the owners of the Parent Company.
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Parent Company cash flow statement
SEKm Note 2024 2023
Operating loss -40 -30
Adjustments for non-cash items
Other provisions 3 -
Interest paid -125 -101
Income tax paid -3 -2
Cash flow from operating activities before changes in working capital -165 -133
Cash flow from changes in working capital
Change in operating receivables 80 -10
Change in operating liabilities -1,540 434
Cash flow from operating activities -1,625 291
Cash flow from operating and investing activities -1,625 291
Financing activities
Repayment of interest-bearing borrowings -593 -594
Proceeds from interest-bearing borrowings 594 593
Dividends to shareholders -285 -285
Dividends received 1,909 -
Transaction costs paid -2 -1
Purchase of treasury shares - -1
Cash flow from financing activities 1,623 -288
Cash flow for the year -2 3
Cash and cash equivalents at beginning of year
P9
0 0
Cash flow for the year -2 3
Exchange difference 2 -3
Cash and cash equivalents at end of year
P9
0 0
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P1 Accounting and valuation policies
of the Parent Company
The annual financial statements of the Parent Company are presented in
accordance with the Swedish Annual Accounts Act (1995:1554) and the
Swedish Financial Reporting Board’s recommendation RFR 2, Account-
ing for Legal Entities. The statements issued by the Board with respect to
listed companies are also applied. RFR 2 states that in the report for the
legal entity, the Parent Company shall apply all EU-endorsed IFRSs and
statements as far as possible, within the framework of the Annual
Accounts Act and with respect to the connection between accounting
and taxation. This recommendation defines the exceptions and additional
disclosures compared to IFRS. These financial statements include the
financial statements of the Parent Company covering the period from
1 January to 31 December 2024. Unless otherwise stated below, the
accounting standards for the Parent Company have been consistently
applied in the period.
Changed accounting standards
Neither revised IFRSs, nor revised RFR 2 effective from 1 January 2024
have entailed any practical change in the accounting standards for the
Parent Company.
Differences between the accounting policies of the Group
and the Parent Company
The differences between the accounting principles applied by the Group
and the Parent Company are described below.
Classification and presentation
The profit and loss account and balance sheet of the Parent Company are
presented in accordance with the Swedish Annual Accounts Act. The
differences compared to IAS 1, Presentation of Financial Statements,
relate mainly to financial income and expenses, equity and the presentation
of provisions as a separate item in the balance sheet.
Borrowing costs
Borrowing costs are expensed when incurred and recognised in the other
financial expenses in the profit and loss account.
Group contributions
Group contributions received are recognised in other financial income in
the profit and loss account. Group contributions paid to group companies
are reported by the Parent Company as other financial expenses in the
profit and loss account.
Shareholdings in group companies
Shareholdings in group companies are accounted for at acquisition costs.
The transaction costs are included in the carrying amount of sharehold-
ings in group companies.
Dividends
Anticipated dividends from group companies are recognised in cases
where the Parent Company has full control over the size of the dividend
and has decided on the size of the dividend before the Parent Company
publishes its financial reports.
Dividends received from group companies are recognised in the profit
and loss account.
Employee benefits
Remeasurements arising from defined benefit plans also include the
return on plan assets excluding interest and the effect of the asset ceiling,
if any, excluding interest. Remeasurements are recognised in the profit
and loss account when incurred. Salary increases are not taken into
account in the calculation of the defined benefit obligation, and the applied
discount rate is established by the Swedish Financial Supervisory
Authority. All other expenses related to defined benefit plans are recog-
nised in the general and administrative expenses in the profit and loss
account when incurred.
Financial guarantees
For reporting of financial guarantee contracts on behalf of group compa-
nies, the Parent Company applies a voluntary exemption that is permitted
by the Swedish Financial Reporting Board. The voluntary exemption
relates to financial guarantees issued on behalf of group companies. The
Parent Company recognises financial guarantee contracts as provisions
in the balance sheet when it is probable that an outflow of resources will be
required to settle the obligation. The costs are recognised in the general
and administrative expenses in the profit and loss account.
P2 Breakdown of income
The net sales of SEK 137m (113) relate to intra-group services and intra-
group royalty income.
The breakdown of net sales by market is as follows:
SEKm 2024 2023
Sweden 52 45
The Netherlands 31 21
Slovakia 17 13
Finland 12 11
Other 25 23
Total 137 113
Notes to the Parent Company financial statements
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P3 Personnel expenses
and number of employees
SEKm 2024 2023
Salaries and remuneration
Group Management Team
Sweden 37 34
Of which, short-term variable compensation
Sweden 17 12
Total salaries and remuneration 37 34
Pension costs
Group Management Team
Defined contribution plans 5 4
Total pension costs 5 4
Social security expenses, all employees 6 6
Total pension costs and
social security expenses
11 10
Total personnel expenses 48 44
See pages 53-55 for details on remuneration of the Group Management
Team.
The company expenses the pension obligation related to the defined
benefit pension plans, which are secured through credit insurance with,
and administered by, Försäkringsbolaget PRI Pensionsgaranti, Mutual in
the administrative expenses in the profit and loss account.
The average number of employees is 4 (4), of which 1 (0) are women.
All employees are employed in Sweden.
The specification of gender distribution in the Board of Directors
and Group Management Team is as follows:
% 2024 2023
Percentage of women
Board of Directors 43 43
Group Management Team 14 20
P4 Audit fees
SEKm 2024 2023
Fee for auditing services 3 3
Fee for other services
Tax advice - -
Audit-related advice - -
Other - -
Total other services - -
Total audit fees 3 3
For both the financial years 2023 and 2024 PwC was elected as auditor of
the Group. Auditing services relate to:
• the audit of the statutory financial statements of the Parent Company,
• the audit of the Parent Company’s administration by the Board of
Directors and the President and CEO,
• the procedures for the auditor’s statement regarding the guide-
lines for remuneration to senior executives, pursuant to Chapter 8,
Section 54 of the Swedish Companies Act (2005:551), and
• the procedures for the auditor’s opinion on the statutory
sustainability report.
P5 Net financial items
SEKm 2024 2023
Exchange differences on cash 0 -3
Group contributions 466 150
Interest income, group companies 36 32
Realised gains on single currency
interest rate swaps
4 18
Other financial income 506 200
Interest expenses, third-party borrowings -45 -43
Interest expenses, group companies -120 -108
Interest expenses on third-party pensions 0 0
Unrealised losses on single currency
interest rate swaps
-1 -16
Other interest expenses 0 -1
Other financial expenses -166 -168
Net financial items 340 29
P6 Income taxes
SEKm 2024 2023
Current income tax -58 -8
Deferred income tax 0 6
Total -58 -2
The year’s income tax expense corresponds
to an effective tax rate of, %
2.6 -147.8
SEKm 2024 2023
The difference between the effective
tax rate and the statutory tax rate in Sweden
is attributable to the following items:
Taxable profit from ordinary activities 2,209 -1
Tax calculated at applicable tax rate
for the Parent Company
-455 0
Expenses not deductible for tax purposes -1 0
Adjustments recognised in the period for
tax for prior periods
5 -1
Tax effect of dividends received 393 -
Other 0 -1
Income tax -58 -2
Reported effective tax rate, % 2.6 -147.8
Tax rate in Sweden, % 20.6 20.6
P7 Deferred and current income tax
Deferred tax assets and liabilities relate to the tax effect of the difference
between the tax base of the defined asset or liability and its carrying
amount as recognised in the financial statements. Deferred tax assets for
the period were SEK 29m (29) and are considered to be realised after more
than 12 months. The recognised deferred tax assets comprise deductible
temporary differences of SEK 29m (29). There are no unrecognised
deferred taxes.
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% of capital | Carrying amount in SEKm | ||||||
Corp. ID no. | Domicile | 2024 | 2023 | 2024 | 2023 | ||
Cloetta Holland B.V. | 34221053 | Amsterdam, the Netherlands | 100 | 100 | 4,087 | 4,087 | |
Cloetta België N.V. | 0404183756 | Turnhout, Belgium | 100 | 100 | - | - | |
Cloetta Suomi Oy | 1933121-3 | Turku, Finland | 100 | 100 | - | - | |
Cloetta Danmark ApS | 28106866 | Brøndby, Denmark | 100 | 100 | - | - | |
Candy Express ApS | 42377732 | Brøndby, Denmark | 100 | 100 | - | - | |
Cloetta Norge AS | 987943033 | Høvik, Norway | 100 | 100 | - | - | |
Cloetta Deutschland GmbH | HRB 9561 | Bocholt, Germany | 100 | 100 | - | - | |
Cloetta Finance Holland B.V. | 20078943 | Amsterdam, the Netherlands | 100 | 100 | - | - | |
Cloetta Slovakia s.r.o. | 35 962 488 | Bratislava, Slovakia | 100 | 100 | - | - | |
Cloetta Nuts AB² | 556706-9264 | Helsingborg, Sweden | 100 | 100 | - | - | |
Cloetta Ireland Holding Ltd.¹ | 544426 | Dublin, Ireland | - | - | - | - | |
Cloetta Ireland Ltd. | 285910 | Dublin, Ireland | 100 | 100 | - | - | |
Cloetta Middle East DMCC | DMCC156985 | Dubai, United Arab Emirates | 100 | 100 | - | - | |
Cloetta Sverige AB | 556674-9155 | Malmö, Sweden | 100 | 100 | 795 | 795 | |
Candyking Sverige AB | 556319-6780 | Malmö, Sweden | 100 | 100 | - | - | |
Pickalot AB | 556730-1857 | Malmö, Sweden | 100 | 100 | - | - | |
Cloetta UK Ltd. | 01726257 | Hampshire, United Kingdom | 100 | 100 | - | - | |
Cloetta Development AB | 556377-3182 | Linköping, Sweden | 100 | 100 | 2 | 2 | |
Total | 4,884 | 4,884 | |||||
| 1) On 13 February 2023, Cloetta Ireland Holding Ltd was struck off. | |||||||
2) | On 19 September 2024, Cloetta Nutisal AB was renamed into Cloetta Nuts AB. | ||||||
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P9 Cash and cash equivalents
A Multicurrency Zero Balancing Cash Pool (MZBCP) is in place, which is
held by Cloetta Holland B.V. As a result, only the cash at bank accounts
outside the MZBCP is presented for Cloetta AB (publ).
See Note 18 for further details.
P10 Equity
Share capital
See Note 19 for a description of the share capital of the Parent Company.
Non-restricted equity
Retained earnings
Retained earnings comprise the sum of profit for the year and retained
earnings from previous years. Retained earnings including the share
premium reserve represent the amount of non-restricted equity available
for distribution to the shareholders.
Treasury shares
Cloetta has purchased 63,704 shares at an average share price, including
incremental transaction costs, of SEK 17.8289 on 30 October 2023. These
shares are held as treasury shares. 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. The remaining 2,553,892 treasury
shares are held with the purpose of issuing shares to the participants of
LTI'22 and LTI'23 at vesting date.
Dividend
The Annual General Meeting (AGM) approved the following dividend on
4 April 2023 and 9 April 2024:
2024 2023
Dividend per share, SEK 1.00 1.00
Total dividend, SEKm 285 285
Dividend as a percentage of profit of
the Cloetta Group for the previous year
65 104¹
Payment date April 2024 April 2023
1) The dividend as percentage of profit for 2022, adjusted for the impact of recognised
impairments and provisions and other items affecting comparability including the tax
impact related to the investment in the greenfield facility amounted to 63 per cent.
After the reporting date, the following dividend was proposed by
the Board of Directors. The dividend has not been recognised as
liability in the balance sheet
2024 2023
Dividend per share, SEK 1.10 1.00
Total dividend, SEKm 315 285
On 14 November 2024, a dividend from group companies of SEK 1,909m
was received.The Board of Directors proposes that the total earnings in
the Parent Company at the disposal of the AGM of SEK 2,672m (848) are
to be distributed as follows: SEK 315m (285) to be distributed to the share-
holders and SEK 2,357m (563) to be carried forward to new account.
P11 Borrowings
The Parent Company’s borrowings consist of loans from credit institu-
tions for a net amount of SEK 798m (799) and commercial papers of
SEK 149m (149).
The following table shows the reconciliation of movements of
liabilities to cash flows arising from financing activities
SEKm
Long-term
borrowings
Short-term
borrowings Total
Balance at 1 January 2023
799 149 948
Changes from
financing cash flows
Proceeds from
commercial papers
- 593 593
Repayment of
commercial papers
- -594 -594
Total changes from
financing cash flows
- -1 -1
Other changes
Amortisation of capitalised
transaction costs
- 1 1
Interest expenses,
third-party borrowings
36 6 42
Interest paid -36 -6 -42
Total other changes 0 1 1
Balance at 31 December 2023 799 149 948
Changes from
financing cash flows
Proceeds from
commercial papers
- 594 594
Repayment of
commercial papers
- -593 -593
Transaction costs paid -1 -1 -2
Total changes from
financing cash flows
-1 - -1
Other changes
Amortisation of capitalised
transaction costs
- 1 1
Interest expenses,
third-party borrowings
38 6 44
Interest paid -38 -7 -45
Total other changes 0 0 0
Balance at 31 December 2024 798 149 947
See Note 21 for the disclosure of the borrowings.
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P12 Derivative financial instruments
The derivative financial instruments comprise single currency interest rate
swap assets amounting to SEK 2m (4) of which SEK 1m (0) is non- current
in nature, single currency interest rate swap liabilities amounting to SEK1m
(1) of which SEK 0m (0) is non- current in nature and forward contracts to
repurchase own shares of SEK 40m (0) which is current in nature.
P13 Accrued expenses
and deferred income
Accrued expenses and deferred income amount to SEK 34m (23), of
which SEK 18m (17) is related to accrued personnel-related expenses and
SEK 16m (6) to other accrued expenses and deferred income.
P14 Pledged assets and
contingent liabilities
SEKm
31 Dec
2024
31 Dec
2023
Contingent liabilities
Guarantees on behalf of group companies 253 235
Guarantee for loans from credit institutions
for group companies
1,432 1,387
Total 1,685 1,622
The company issued a parent company guarantee pursuant to Article
403, Book 2 of the Dutch Civil Code in respect of Cloetta Holland B.V. and
Cloetta Finance Holland B.V. This means that Cloetta AB declares and
accepts, under reservation of legal repeal of the declaration, joint and
several liability for the debts resulting from legal acts of Cloetta Holland
B.V. and Cloetta Finance Holland B.V. As the probability of a settlement is
remote, an estimate of the financial effect is not practical to calculate.
The company issued a support letter to Cloetta Ireland Ltd. The term and
revolving facilities agreement is unsecured in nature.
P15 Related-party transactions
The Parent Company’s holdings of shares and participations in subsidiaries
are specified in Note P8.
Receivables from and liabilities to subsidiaries
are broken down as follows:
SEKm
31 Dec
2024
31 Dec
2023
Non-current interest-bearing receivables 523 497
Current interest-free receivables 471 159
Non-current interest-bearing payables -156 -150
Current interest-bearing payables -669 -2,233
Total 169 -1,727
For the Parent Company, SEK 137m (113), equal to 100 per cent (100) of the
year’s net sales, and SEK 91m (69), equal to 51 per cent (49) of the year’s
purchases, relate to group companies in the Cloetta Group. The prices of
goods and services sold to and purchased from related parties are set on
market-based terms.
On 14 November 2024, a dividend from group companies of SEK1,909m
was received.
At 31 December 2024, the Parent Company’s receivables from group
companies amounted to SEK 994m (656) and liabilities to subsidiaries
amounted to SEK 825m ( 2,383). Transactions with related parties are priced
on market-based terms. Total costs excluding social security charges
related to the share-based long-term incentive plan amounted to SEK 5m
(7), of which SEK 5m (7) is related to the Group Management Team.
The Parent Company has no past experience of credit losses on
receivables from group companies and future credit losses are expected
to be immaterial.
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Earnings in the Parent Company at the disposal
of the Annual General Meeting 2024
Share premium reserve SEK 2,711,620,366
Retained earnings SEK -2,189,887,199
Profit for the year SEK 2,150,730,692
Total SEK 2,672,463,859
The Board of Directors proposes that dividends be paid in a total
amount of SEK 314,671,948 equal to SEK 1.10 per share. The Board
of Directors proposes that the earnings be disposed of as follows:
The earnings are to be disposed as follows: 2024
To be distributed to the shareholders SEK 314,671,948
To be carried forward to new account SEK 2,357,791,911
Total SEK 2,672,463,859
The number of shares at 31 December 2024 was 288,619,299, of
which 2,553,892 were held in treasury.
Proposed appropriation of earnings
The Board of Directors and the President and CEO give their
assurance that the consolidated financial statements and annual
report have been prepared in accordance with Regulation (EC) No.
1606/2002 of the European Parliament and of the Council of 19 July
2002, on the Application of International Accounting Standards and
Generally Accepted Accounting Standards, and give a true and fair
view of the financial position and results of operations of the Group
and the Parent Company. The administration report for the Group
and the Parent Company gives 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 compa-
nies are exposed. The statutory Sustainability Report, comprising
those areas in the Cloetta AB (publ) annual report with content
specified on the inside of the front cover, has been approved for
publication by the Board of Directors.
Stockholm, 6 March 2025
Morten Falkenberg
Chairman
Pauline Lindwall
Member of the Board
Patrick Bergander
Member of the Board
Malin Jennerholm
Member of the Board
Alan McLean Raleigh
Member of the Board
Mikael Svenfelt
Member of the Board
Camilla Svenfelt
Member of the Board
Lena Grönedal
Employee Board member
Katarina Tell
President and CEO
Our audit report was issued 6 March 2025
Öhrlings PricewaterhouseCoopers AB
Sofia Götmar-Blomstedt
Authorised Public Accountant
Partner in charge
Erik Bergh
Authorised Public Accountant
The profit and loss accounts and balance sheets of the Group and
the Parent Company are subject to approval by the AGM on 10
April 2025. The information in this report is subject to the disclo-
sure requirements of Cloetta AB (publ) under the provisions in the
Swedish Securities Market Act. The information was submitted
for publication on 11 March 2025, at 08:00 CET.
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Auditor’s report
Unofficial translation
To the general meeting of the shareholders of Cloetta AB (publ),
corporate identity number 556308-8144
Report on the annual accounts and consolidated accounts
Opinions
We have audited the annual accounts and consolidated accounts
of Cloetta AB (publ) for the year 2024 except for the corporate
governance statement on pages 46–61 and the sustainability report
on pages 62–106. The annual accounts and consolidated accounts
of the company are included on pages 33–159 in this document.
In our opinion, the annual accounts have been prepared in
accordance with the Annual Accounts Act and present fairly, in all
material respects, the financial position of parent company and the
group as of 31 December 2024 and its financial performance and
cash flow for the year then ended in accordance with the Annual
Accounts Act. The consolidated accounts have been prepared
in accordance with the Annual Accounts Act and present fairly,
in all material respects, the financial position of the group as of
31 December 2024 and their financial performance and cash
flow for the year then ended in accordance with IFRS Accounting
Standards, as adopted by the EU, and the Annual Accounts Act.
Our opinions do not cover the corporate governance statement on
pages 46–61 and the sustainability report on pages 62–106. The
statutory administration report is consistent with the other parts of
the annual accounts and consolidated accounts.
We therefore recommend that the general meeting of share-
holders adopts the income statement and balance sheet for the
parent company and the group.
Our opinions in this report on the annual accounts and consoli-
dated accounts are consistent with the content of the additional report
that has been submitted to the parent company's audit committee in
accordance with the Audit Regulation (537/2014) Article 11.
Basis for Opinions
We conducted our audit in accordance with International Stand-
ards on Auditing (ISA) and generally accepted auditing stand-
ards in Sweden. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities section. We are
independent of the parent company and the group in accordance
with professional ethics for accountants in Sweden and have
otherwise fulfilled our ethical responsibilities in accordance with
these requirements. This includes that, based on the best of our
knowledge and belief, no prohibited services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided to the audited
company or, where applicable, its parent company or its controlled
companies within the EU.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinions.
Our audit approach
Audit scope
We designed our audit by determining materiality and assessing the
risks of material misstatement in the consolidated financial state-
ments. In particular, we considered where management made sub-
jective judgements; for example, in respect of significant accounting
estimates that involved making assumptions and considering future
events that are inherently uncertain. As in all of our audits, we also
addressed the risk of management override of internal controls,
including among other matters consideration of whether there was
evidence of bias that represented a risk of material misstatement
due to fraud.
We tailored the scope of our audit in order to perform sufficient
work to enable us to provide an opinion on the consolidated finan-
cial statements as a whole, taking into account the structure of the
Group, the accounting processes and controls, and the industry in
which the group operates.
Materiality
The scope of our audit was influenced by our application of materi-
ality. An audit is designed to obtain reasonable assurance whether
the financial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They are considered
material if individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the
basis of the consolidated financial statements.
Based on our professional judgement, we determined certain
quantitative thresholds for materiality, including the overall group
materiality for the consolidated financial statements as a whole.
These, together with qualitative considerations, helped us to deter-
mine the scope of our audit and the nature, timing and extent of our
audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate on the financial statements as a whole.
Key audit matters
Key audit matters of the audit are those matters that, in our pro-
fessional judgment, were of most significance in our audit of the
annual accounts and consolidated accounts of the current period.
These matters were addressed in the context of our audit of, and in
forming our opinion thereon, the annual accounts and consolidated
accounts as a whole, but we do not provide a separate opinion on
these matters.
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Other Information than the annual accounts
and consolidated accounts
This document also contains other information than the annual
accounts and consolidated accounts and is found on pages 1–32,
62–106 and 164–172. Other information also consists of the renu-
meration report 2024 which we obtained before the date of this
auditor’s report. The Board of Directors and the Managing Director
are responsible for this other information.
Our opinion on the annual accounts and consolidated accounts
does not cover this other information and we do not express any
form of assurance conclusion regarding this other information.
In connection with our audit of the annual accounts and con-
solidated accounts, our responsibility is to read the information
identified above and consider whether the information is materially
inconsistent with the annual accounts and consolidated accounts.
In this procedure we also take into account our knowledge other-
wise obtained in the audit and assess whether the information
otherwise appears to be materially misstated.
If we, based on the work performed concerning this information,
conclude that there is a material misstatement of this other informa-
tion, we are required to report that fact. We have nothing to report in
this regard.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and the Managing Director are responsi-
ble for the preparation of the annual accounts and consolidated
accounts and that they give a fair presentation in accordance
with the Annual Accounts Act and, concerning the consolidated
accounts, in accordance with IFRS Accounting Standards as
adopted by the EU. The Board of Directors and the Managing
Director are also responsible for such internal control as they
determine is necessary to enable the preparation of annual
accounts and consolidated accounts that are free from material
misstatement, whether due to fraud or error.
In preparing the annual accounts and consolidated accounts,
The Board of Directors and the Managing Director are responsible
for the assessment of the company's and the group's ability to
continue as a going concern. They disclose, as applicable, matters
related to going concern and using the going concern basis of
accounting. The going concern basis of accounting is however not
applied if the Board of Directors and the Managing Director intend
to liquidate the company, to cease operations, or has no realistic
alternative but to do so.
The Audit Committee shall, without prejudice to the Board of
Directors’ responsibilities and tasks in general, among other things
oversee the company’s financial reporting process.
Auditor’s responsibility
Our objectives are to obtain reasonable assurance about whether
the annual accounts and consolidated accounts as a whole are free
from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinions. Reasonable
assurance is a high level of assurance but is not a guarantee that an
audit conducted in accordance with ISAs and generally accepted
auditing standards in Sweden will always detect a material mis-
statement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic
decisions of users taken on the basis of these annual accounts and
consolidated accounts.
A further description of our responsibility for the audit of the annual
accounts and consolidated accounts is available on Revisorsinspek-
tionen’s website: www.revisorsinspektionen.se/revisornsansvar. This
description is part of the auditor´s report.
Report on other legal and regulatory requirements
The auditor’s examination of the administration of the
company and the proposed appropriations of the company’s
profit or loss
Opinions
In addition to our audit of the annual accounts and consolidated
accounts, we have also audited the administration of the Board
of Directors’ and the Managing Director of Cloetta AB (publ) for
the year 2024 and the proposed appropriations of the company’s
profit or loss.
We recommend to the general meeting of shareholders that
Key audit matters How our audit addressed the Key audit matters
Impairment test for intangible assets
Goodwill and other intangible assets with an indefinite useful life rep-
resent a significant part of the Balance Sheet of Cloetta and amount
to SEK 5,784m (5,803) as of 31 December 2024. The group annually
performs an impairment assessment of the assets based on a calcu-
lation of the discounted cash flow for the cash generating unit in which
goodwill and other intangible assets are reported, as required by IFRS
Accounting Standards. Impairment tests, by their nature, are based
on a high level of judgments and assumptions regarding future cash
flows.
Information is provided in Note 1 and 12 as to how the group’s manage-
ment has undertaken its as-sessments and provides information on
important assumptions and sensitivity analyses. As described in Note
12, key variables in the test are growth rate and discount factor (cost of
capital). It is also presented that no impairment requirement has been
identified in 2024 based on the assumptions undertaken.
In our audit, we have evaluated the calculation model applied by man-
agement and tested the mathematical accuracy. This implies that we
have reconciled and critically tested essential variables against
budget and long-term plan for the group and in some cases towards
external data. Furthermore, we have performed a retrospective
review of the prior period estimate by comparing it to actual current
period results.
We have tested the sensitivity in the group’s analysis for key assump-
tions in order to assess the risk for impairment. We have also
assessed the disclosures included in the financial statements.
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the profit be appropriated in accordance with the proposal in the
statutory administration report and that the members of the Board of
Director's and the Managing Directors be discharged from liability for
the financial year.
Basis for Opinions
We conducted the audit in accordance with generally accepted
auditing standards in Sweden. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities
section. We are independent of the parent company and the
group in accordance with professional ethics for accountants in
Sweden and have otherwise fulfilled our ethical responsibilities in
accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinions.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors is responsible for the proposal for appropri-
ations of the company’s profit or loss. At the proposal of a dividend,
this includes an assessment of whether the dividend is justifiable
considering the requirements which the company's and the group's
type of operations, size and risks place on the size of the parent
company's and the group’ equity, consolidation requirements,
liquidity and position in general.
The Board of Directors is responsible for the company’s organi-
sation and the administration of the company’s affairs. This includes
among other things continuous assessment of the company's and
the group's financial situation and ensuring that the company's
organisation is designed so that the accounting, management of
assets and the company’s financial affairs otherwise are controlled
in a reassuring manner. The Managing Director shall manage the
ongoing administration according to the Board of Directors’ guide-
lines and instructions and among other matters take measures that
are necessary to fulfill the company’s accounting in accordance with
law and handle the management of assets in a reassuring manner.
Auditor’s responsibility
Our objective concerning the audit of the administration, and
thereby our opinion about discharge from liability, is to obtain audit
evidence to assess with a reasonable degree of assurance whether
any member of the Board of Directors or the Managing Director in
any material respect:
• has undertaken any action or been guilty of any omission which can
give rise to liability to the company, or
• in any other way has acted in contravention of the Companies Act,
the Annual Accounts Act or the Articles of Association.
Our objective concerning the audit of the proposed appropriations
of the company’s profit or loss, and thereby our opinion about this,
is to assess with reasonable degree of assurance whether the
proposal is in accordance with the Companies Act.
Reasonable assurance is a high level of assurance but is not a
guarantee that an audit conducted in accordance with generally
accepted auditing standards in Sweden will always detect actions
or omissions that can give rise to liability to the company, or that the
proposed appropriations of the company’s profit or loss are not in
accordance with the Companies Act.
A further description of our responsibility for the audit of the
administration is available on Revisorsinspektionen’s website:
www.revisorsinspektionen.se/revisornsansvar. This description
is part of the auditor’s report.
The auditor’s examination of the ESEF report
Opinion
In addition to our audit of the annual accounts and consolidated
accounts, we have also examined that the Board of Directors and
the Managing Director have prepared the annual accounts and
consolidated accounts in a format that enables uniform electronic
reporting (the ESEF report) pursuant to Chapter 16, Section 4(a) of
the Swedish Securities Market Act (2007:528) for Cloetta AB (publ)
for the financial year 2024.
Our examination and our opinion relate only to the statutory
requirements.
In our opinion, the ESEF report has been prepared in a format
that, in all material respects, enables uniform electronic reporting.
Basis for Opinions
We have performed the examination in accordance with FAR’s
recommendation RevR 18 Examination of the ESEF report. Our
responsibility under this recommendation is described in more
detail in the Auditors’ responsibility section. We are independent
of Cloetta AB (publ) in accordance with professional ethics for
accountants in Sweden and have otherwise fulfilled our ethical
responsibilities in accordance with these requirements.
We believe that the evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and the Managing Director are responsible
for the preparation of ESEF report in accordance with the
Chapter 16, Section 4(a) of the Swedish Securities Market Act
(2007:528), and for such internal control that the Board of Direc-
tors and the Managing Director determine is necessary to prepare
the ESEF report without material misstatements, whether due to
fraud or error.
Auditor’s responsibility
Our responsibility is to form an opinion with reasonable assurance
whether the ESEF report is in all material respects prepared in a
format that meets the requirements of Chapter 16, Section 4(a) of
the Swedish Securities Market Act (2007:528), based on the proce-
dures performed.
RevR 18 requires us to plan and execute procedures to achieve
reasonable assurance that the ESEF report is prepared in a format
that meets these requirements.
Reasonable assurance is a high level of assurance, but it is not
a guarantee that an engagement carried out according to RevR
18 and generally accepted auditing standards in Sweden will
always detect a material misstatement when it exists. Misstate-
ments can arise from fraud or error and are considered material
if, individually or in aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of
the ESEF report.
The firm applies International Standard on Quality Management
1, which requires the firm to design, implement and operate a system
of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
The examination involves obtaining evidence, through various
procedures, that the ESEF report has been prepared in a format
that enables uniform electronic reporting of the annual accounts
and consolidated accounts. The procedures selected depend on
the auditor’s judgment, including the assessment of the risks of
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material misstatement in the report, whether due to fraud or error.
In carrying out this risk assessment, and in order to design audit
procedures that are appropriate in the circumstances, the auditor
considers those elements of internal control that are relevant to the
preparation of the ESEF report by the Board of Directors and the
Managing Director, but not for the purpose of expressing an opinion
on the effectiveness of those internal controls. The examination also
includes an evaluation of the appropriateness and reasonableness
of assumptions made by the Board of Directors and the Managing
Director.
The procedures mainly include a validation that the ESEF report
has been prepared in a valid XHMTL format and a reconciliation of
the ESEF report with the audited annual accounts and consolidated
accounts.
Furthermore, the procedures also include an assessment of
whether the consolidated statement of financial performance,
financial position, changes in equity, cash flow and disclosures in
the ESEF report have been marked with iXBRL in accordance with
what follows from the ESEF regulation.
The auditor’s examination of
the corporate governance statement
The Board of Directors is responsible for that the corporate govern-
ance statement on pages 46–61 has been prepared in accordance
with the Annual Accounts Act.
Our examination of the corporate governance statement is
conducted in accordance with FAR’s auditing standard RevR 16 The
auditor’s examination of the corporate governance statement. This
means that our examination of the corporate governance statement
is different and substantially less in scope than an audit conducted
in accordance with International Standards on Auditing and gen-
erally accepted auditing standards in Sweden. We believe that the
examination has provided us with sufficient basis for our opinions.
A corporate governance statement has been prepared.
Disclosures in accordance with chapter 6 section 6 the second
paragraph points 2–6 of the Annual Accounts Act and chapter 7
section 31 the second paragraph the same law are consistent with
the other parts of the annual accounts and consolidated accounts
and are in accordance with the Annual Accounts Act.
Öhrlings PricewaterhouseCoopers AB, 113 97 Stockholm, was
appointed auditor of Cloetta AB (publ) by the general meeting of
the shareholders on the 9 April 2024 and has been the company’s
auditor since the 4 April 2019.
Stockholm 6 March 2025
Öhrlings PricewaterhouseCoopers AB
Sofia Götmar-Blomstedt
Authorised Public Accountant
Partner in charge
Erik Bergh
Authorised Public Accountant
This is a translation of the Swedish language original. In the event of any differences
between this translation and the Swedish language original, the latter shall prevail.
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Ten-year overview
SEKm 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Profit and loss account in summary
Net sales 8,613 8,301 6,869 6,046 5,695 6,493 6,218 5,784 5,107 5,674
Cost of goods sold -5,747 -5,751 -4,738 -3,898 -3,718 -4,112 -3,934 -3,678 -3,084 -3,463
Gross profit 2,866 2,550 2,131 2,148 1,977 2,381 2,284 2,106 2,023 2,211
Other income - - - - - - 4 6 - 0
Selling expenses -1,160 -1,073 -1,009 -938 -951 -1,011 -1,025 -972 -806 -949
General and administrative expenses -899 -742 -656 -645 -584 -643 -603 -613 -582 -591
Operating profit 807 735 466 565 442 727 660 527 635 671
Exchange differences cash and
cash equivalents
-35 -43 -143 33 -10 -19 -16 -17 -8 -1
Other financial income 111 128 83 9 3 2 5 7 17 6
Other financial expenses -224 -250 -63 -49 -52 -62 -87 -74 -175 -183
Net financial items -148 -165 -123 -7 -59 -79 -98 -84 -166 -178
Profit before tax 659 570 343 558 383 648 562 443 469 493
Income tax expense -182 -133 -68 -86 -118 -150 -79 -206 -122 -107
Profit for the period
for continuing operations
477 437 275 472 265 498 483 237 347 386
Result after tax from
discontinued operations
- - - - - - - -334 -538 -
Net profit/loss for the period 477 437 275 472 265 498 483 -97 -191 386
Profit for the period attributable to:
Owners of the Parent Company
Continuing operations 477 437 275 472 265 498 483 237 347 386
Discontinued operation - - - - - - - -334 -538 -
Total 477 437 275 472 265 498 483 -97 -191 386
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SEKm
31 Dec
2024
31 Dec
2023
31 Dec
2022
31 Dec
2021
31 Dec
2020
31 Dec
2019
31 Dec
2018
31 Dec
2017
31 Dec
2016
31 Dec
2015
Balance sheet in summary
Intangible assets 5,833 5,862 5,883 5,582 5,530 5,684 5,626 5,490 5,354 5,948
Property, plant and equipment 1,695 1,686 1,581 1,576 1,560 1,559 1,354 1,338 1,700 1,698
Deferred tax asset 59 23 43 42 21 9 16 20 54 64
Derivative financial instruments 1 5 25 2 - - - - - -
Other financial assets 4 3 3 5 3 7 11 11 13 27
Total non-current assets 7,592 7,579 7,535 7,207 7,114 7,259 7,007 6,859 7,121 7,737
Inventories 1,336 1,292 1,090 843 952 888 765 745 780 786
Trade and other receivables 1,256 1,089 1,030 787 736 928 838 881 988 975
Current income tax assets 4 47 44 19 30 6 6 8 36 3
Derivative financial instruments 4 18 34 1 - - 1 0 4 1
Cash and cash equivalents 953 658 583 692 396 579 551 759 298 246
Total current assets 3,553 3,104 2,781 2,342 2,114 2,401 2,161 2,393 2,106 2,011
Assets held for sale - - - - - - - - 9 11
TOTAL ASSETS
11,145 10,683 10,316 9,549 9,228 9,660 9,168 9,252 9,236 9,759
Equity 5,434 5,098 4,994 4,515 4,153 4,197 3,968 3,818 4,199 4,344
Long-term borrowings 2,306 2,264 2,277 2,162 111 939 2,076 1,715 2,666 2,612
Deferred tax liability 910 900 884 863 836 803 754 703 586 621
Derivative financial instruments 4 8 - - 0 3 3 2 12 44
Other non-current liabilities - - - - - - - 138 - 43
Provisions for pensions and
other long-term employee benefits
378 382 345 505 512 499 419 374 396 378
Provisions 163 160 107 - 5 5 9 5 22 10
Total non-current liabilities 3,761 3,714 3,613 3,530 1,464 2,249 3,261 2,937 3,682 3,708
Short-term borrowings 203 220 207 206 2,368 1,870 500 999 2 344
Derivative financial instruments 45 1 - 0 54 68 61 71 54 35
Trade and other payables 1,573 1,585 1,419 1,267 1,144 1,227 1,342 1,394 1,196 1,216
Provisions 11 14 6 5 24 5 23 3 64 57
Current income tax liabilities 118 51 77 26 21 44 13 30 39 55
Total current liabilities 1,950 1,871 1,709 1,504 3,611 3,214 1,939 2,497 1,355 1,707
Total equity and liabilities 11,145 10,683 10,316 9,549 9,228 9,660 9,168 9,252 9,236 9,759
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Key ratios
SEKm 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Profit
Net sales 8,613 8,301 6,869 6,046 5,695 6,493 6,218 5,784 5,107 5,674
Net sales, change % 3.8 20.8 13.6 6.2 -12.3 4.4 7.5 13.3 n/a 6.8
Organic net sales, change, % 4.7 15.7 10.0 8.4 -11.2 2.3 -2.8 -1.2 n/a 1.5
Gross margin, % 33.3 30.7 31.0 35.5 34.7 36.7 36.7 36.4 39.6 39.0
Depreciation -273 -284 -251 -250 -270 -290 -218 -218 -206 -227
Amortisation -11 -11 -11 -10 -10 -11 -12 -11 -5 -4
Impairment other non-current assets -60 17 -136 -1 -13 -2 - -9 -2 -
Operating profit (EBIT), adjusted 910 799 691 571 495 743 677 604 695 690
Operating profit margin
(EBIT margin), adjusted %
10.6 9.6 10.1 9.4 8.7 11.4 10.9 10.4 13.6 12.2
Operating profit (EBIT) 807 735 466 565 442 727 660 527 635 671
Operating profit margin (EBIT margin), % 9.4 8.9 6.8 9.3 7.8 11.2 10.6 9.1 12.4 11.8
EBITDA, adjusted 1,194 1,100 955 832 777 1,046 907 833 906 921
EBITDA 1,151 1,013 864 826 735 1,030 890 765 848 902
Profit margin, % 7.7 6.9 5.0 9.2 6.7 10.0 9.0 7.7 9.2 8.7
Segments
Branded packaged products
Net sales 6,219 6,153 5,169 4,686 4,527 n/a n/a n/a n/a n/a
Operating profit, adjusted 740 786 669 577 649 n/a n/a n/a n/a n/a
Operating profit margin, adjusted % 11.9 12.8 12.9 12.3 14.3 n/a n/a n/a n/a n/a
Pick & mix
Net sales 2,394 2,148 1,700 1,360 1,168 n/a n/a n/a n/a n/a
Operating profit, adjusted 170 13 22 -6 -154 n/a n/a n/a n/a n/a
Operating profit margin, adjusted % 7.1 0.6 1.3 -0.4 -13.2 n/a n/a n/a n/a n/a
Financial position
Working capital 1,017 796 701 363 540 589 402 232 572 628
Capital expenditure 225 379 296 230 357 235 184 157 170 161
Net debt 1,610 1,825 1,855 1,679 2,139 2,302 2,091 2,035 2,443 2,818
Capital employed 8,370 7,973 7,823 7,388 7,198 7,576 7,027 6,979 7,329 7,756
Return on capital employed, % ¹ 11.2 10.9 7.2 7.9 6.0 10.0 9.5 8.2 11.1 8.6
Equity/assets ratio, % 48.8 47.7 48.4 47.3 45.0 43.4 43.3 41.3 45.5 44.5
Net debt/equity ratio, % 29.6 35.8 37.1 37.2 51.5 54.8 52.7 53.3 58.2 64.9
Return on equity, % 8.8 8.6 5.5 10.5 6.4 11.9 12.2 6.2 -4.5 8.9
Equity per share, SEK 19.0 17.9 17.5 15.7 14.4 14.5 13.7 13.2 14.5 15.1
Net debt/EBITDA, x 1.3 1.7 1.9 2.0 2.8 2.2 2.3 2.4 2.4 3.0
1) Return on capital employed for 2016 was calculated pro-forma for continuing operations.
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SEKm 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Cash flow
Cash flow from operating activities 765 778 519 858 641 724 628 712 889 927
Cash flow from investing activities -91 -280 -213 -191 -274 -330 -184 -22 -322 -367
Cash flow after investments 674 498 306 667 367 394 444 690 567 560
Free cash flow 602 496 305 664 366 538 444 555 719 766
Free cash flow yield, % 8.3 9.5 5.1 8.8 5.2 5.9 6.3 6.5 8.7 9.5
Cash flow from operating activities
per share, SEK
2.7 2.7 1.8 3.0 2.2 2.5 2.2 2.5 3.1 3.2
Employees
Average number of employees² 2,577 2,582 2,598 2,599 2,653 2,629 2,458 2,467 2,115 2,583
Share data
Earnings per share, SEK
Basic³ 1.67 1.53 0.96 1.64 0.92 1.74 1.69 -0.34 -0.67 1.35
Diluted³ 1.67 1.53 0.96 1.64 0.92 1.74 1.68 -0.34 -0.67 1.35
Earnings per share from
continuing operations, SEK
Basic³ 1.67 1.53 0.96 1.64 0.92 1.74 1.69 0.83 1.21 1.35
Diluted³ 1.67 1.53 0.96 1.64 0.92 1.74 1.68 0.83 1.21 1.35
Earnings per share from
discontinued operation, SEK
Basic³ - - - - - - - -1.17 -1.88 -
Diluted³ - - - - - - - -1.17 -1.88 -
Ordinary dividend per share, proposed, SEK⁴ 1.10 1.00 1.00 1.00 0.75 0.50 1.00 0.75 0.75 0.50
Special dividend per share, SEK - - - - - - - 0.75 - -
Number of shares outstanding
at end of period³
286,065,407 285,342,034 285,405,738 287,028,670 288,619,299 288,619,299 288,619,299 288,619,299 288,619,299 288,619,299
Average number of shares (basic)³
285,690,150 285,394,917 286,806,351 287,480,924 286,590,993 286,578,395 286,492,413 286,320,464 286,193,024 286,290,840
Average number of shares (diluted)³
285,786,127 285,650,818 286,890,237 287,518,726 286,805,203 286,724,049 286,650,070 286,492,178 286,447,465 286,561,607
Share-price at year-end, SEK 25.20 18.32 20.86 26.20 24.52 31.70 24.30 29.70 28.70 28.00
Exchange Rates
EUR, average 11.4408 11.4821 10.6346 10.1527 10.4880 10.5815 10.2543 9.6362 9.4700 9.3445
EUR, end of period 11.4590 11.0960 11.1218 10.2503 10.0343 10.4468 10.2274 9.8210 9.5804 9.1679
NOK, average 0.9831 1.0046 1.0532 0.9991 0.9757 1.0748 1.0672 1.0324 1.0200 1.0432
NOK, end of period 0.9715 0.9871 1.0578 1.0262 0.9584 1.0591 1.0294 0.9997 1.0548 0.9563
GBP, average 13.5177 13.2099 12.4689 11.8203 11.7868 12.0732 11.5917 10.9909 11.5480 12.8736
GBP, end of period 13.8197 12.7680 12.5397 12.1987 11.1613 12.2788 11.3992 11.0684 11.1673 12.4835
DKK, average 1.5339 1.5410 1.4295 1.3652 1.4070 1.4173 1.3760 1.2956 1.2721 1.2529
DKK, end of period 1.5365 1.4888 1.4956 1.3784 1.3485 1.3982 1.3698 1.3192 1.2888 1.2287
2) Average number of employees is presented for continuing operations in 2017. Employee numbers in 2019 have been updated following the implementation of a new company-wide HR
system. Comparative figures have not been restated.
3) From 2013 until 2020 and in 2024, Cloetta entered into forward contracts to repurchase own shares to fulfill its future obligation to deliver the shares to the participants of its long-term share-
based incentive plan. From 2021 until 2023, Cloetta purchased 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.
4) In March 2020, the Board of Directors decided to withdraw its proposal for a dividend for the 2019 financial year of SEK 1.00 per share, as a result of the increased uncertainty due to the
Covid-19 pandemic. In September 2020, the Board of Directors proposed a dividend of SEK 0.50 per share for the 2019 financial year, considering Cloetta’s strong financial position and
cash generative business model. The EGM on 3 November 2020 approved this dividend proposal.
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Reconciliation of alternative performance measures
SEKm 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Items affecting comparability
Acquisitions, integration and
restructurings
-103 -64 -249 -6 -53 -13 -38 -62 -43 -47
of which: impairment non-current assets -60 23 -134 - -11 - - -9 -2 -
Remeasurements of contingent
considerations
- - - - - - 21 5 -17 33
Remeasurements of assets held for sale - - - - - - - - - -5
Other items affecting comparability - - 24 - - -3 0 -20 - -
Items affecting comparability -103 -64 -225 -6 -53 -16 -17 -77 -60 -19
Corresponding line in the condensed
consolidated profit and loss account:
Net sales - - - - - - 0 - - -4
Cost of goods sold 25 -48 -210 1 -19 2 3 -39 -15 -22
Other income - - - - - - 4 4 - -
Selling expenses -3 1 -4 - -12 -6 -1 -6 - -12
General and administrative expenses -125 -17 -11 -7 -22 -12 -23 -36 -45 19
Total -103 -64 -225 -6 -53 -16 -17 -77 -60 -19
Operating profit, adjusted¹
Operating profit 807 735 466 565 442 727 660 527 635 671
Minus: Items affecting comparability -103 -64 -225 -6 -53 -16 -17 -77 -60 -19
Operating profit, adjusted 910 799 691 571 495 743 677 604 695 690
Net sales 8,613 8,301 6,869 6,046 5,695 6,493 6,218 5,784 5,107 5,674
Operating profit margin, adjusted, % 10.6 9.6 10.1 9.4 8.7 11.4 10.9 10.4 13.6 12.2
EBITDA, adjusted¹
Operating profit 807 735 466 565 442 727 660 527 635 671
Minus: Depreciation -273 -284 -251 -250 -270 -290 -218 -218 -206 -227
Minus: Amortisation -11 -11 -11 -10 -10 -11 -12 -11 -5 -4
Minus: Impairment non-current assets -60 17 -136 -1 -13 -2 - -9 -2 -
EBITDA 1,151 1,013 864 826 735 1,030 890 765 848 902
Minus: Items affecting comparability
(excl. impairment non-current assets)
-43 -87 -91 -6 -42 -16 -17 -68 -58 -19
EBITDA, adjusted 1,194 1,100 955 832 777 1,046 907 833 906 921
1) The key figure has been affected by IFRS 16 ‘Leases’ as of 1 January 2019. Comparative figures are not restated.
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Capital employed¹
,
²
Total assets 11,145 10,683 10,316 9,549 9,228 9,660 9,168 9,252 9,236 9,759
Minus: Deferred tax liability 910 900 884 863 836 803 754 703 586 621
Minus: Other non-current liabilities - - - - - - - 138 - 43
Minus: Non-current provisions 163 160 107 - 5 5 9 5 22 10
Minus: Current provisions 11 14 6 5 24 5 23 3 64 57
Minus: Trade and other payables 1,573 1,585 1,419 1,267 1,144 1,227 1,342 1,394 1,196 1,216
Minus: Current income tax liabilities 118 51 77 26 21 44 13 30 39 55
Plus: Interest-bearing other current liabilities - - - - - - - - - -1
Capital employed 8,370 7,973 7,823 7,388 7,198 7,576 7,027 6,979 7,329 7,756
Capital employed comparative period
previous year
7,973 7,823 7,388 7,198 7,576 7,027 6,979 5,966 7,756 8,041
Average capital employed 8,172 7,898 7,606 7,293 7,387 7,302 7,003 6,473 7,543 7,899
Return on capital employed¹
,
²
Operating profit 807 735 466 565 442 727 660 527 635 671
Financial income 111 128 83 9 3 2 5 7 17 6
Operating profit plus financial income 918 863 549 574 445 729 665 534 652 677
Average capital employed 8,172 7,898 7,606 7,293 7,387 7,302 7,003 6,473 5,879 7,899
Return on capital employed, % 11.2 10.9 7.2 7.9 6.0 10.0 9.5 8.2 11.1 8.6
Free cash flow yield¹
Cash flow from operating activities 765 778 519 858 641 724 628 712 889 927
Cash flows from investments in property,
plant and equipment and intangible
assets
-163 -282 -214 -194 -275 -186 -184 -157 -170 -161
Free cash flow 602 496 305 664 366 538 444 555 719 766
Number of shares outstanding
286,065,407 285,342,034 285,405,738 287,028,670 288,619,299 288,619,299 288,619,299 288,619,299 288,619,299 288,619,299
Free cash flow per share , SEK 2.10 1.74 1.07 2.31 1.27 1.86 1.54 1.92 2.49 2.65
Market price per share, SEK 25.20 18.32 20.86 26.20 24.52 31.70 24.30 29.70 28.70 28.00
Free cash flow yield, % 8.3 9.5 5.1 8.8 5.2 5.9 6.3 6.5 8.7 9.5
Changes in net sales
Net sales 8,613 8,301 6,869 6,046 5,695 6,493 6,218 5,784 5,107 5,674
Net sales comparative period previous year 8,301 6,869 6,046 5,695 6,493 6,218 5,784 5,107 n/a 5,313
Net sales, change 312 1,432 823 351 -798 275 434 677 n/a 361
Minus: Structural changes -70 - - - - - 375 708 n/a 208
Minus: Changes in exchange rates -12 356 217 -125 -70 129 217 30 n/a 77
Organic growth 394 1,076 606 476 -728 146 -158 -61 n/a 76
Structural changes, % -0.9 - - - - - 6.5 13.9 n/a 3.9
Organic growth, % 4.7 15.7 10.0 8.4 -11.2 2.3 -2.8 -1.2 n/a 1.4
1) The key figure has been affected by IFRS 16 ‘Leases’ as of 1 January 2019. Comparative figures are not restated.
2) Return on capital employed for 2017 has been calculated pro-forma for continuing operations.
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Glossary
Branded packaged products
Products that are mainly sold under brands
and are packaged.
Brand extension
Totally new products developed under an
established brand.
BRC Global Standards for Food Safety
A leading safety and quality certification
programme. Many European and global
retailers will only consider business with
suppliers that have been certified accord-
ing to the BRC Global Standard.
Contract manufacturing
Manufacturing of external brands, i.e.
insourcing production of products from
external parties.
FVTPL
Fair Value Through Profit and Loss.
GMP
Good Manufacturing Practices (GMPs) in
the food industry are guidelines and prin-
ciples implemented to ensure food safety
and quality.
GRI Global Reporting Initiative
A network-based organisation whose
founders include the UN. GRI has pio-
neered the development of a standard for
the structure and content of sustainability
reporting.
IFS
A GFSI-approved standard for safety and
quality in production processes and food
products.
ILO
International Labour Organization, United
Nations agency dealing with labour issues.
ISO 9001 and ISO 14001
International Organization for Stand-
ardization. ISO 9001 addresses quality
management and ISO 140001 addresses
environmental management.
Line extension
New packaging, sizes and flavours for an
established brand.
Own brands (EMV)
Brands that retail trade customers sell
under their own brands.
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 accompa-
nying store and logistic services.
Polyols
Sugar alcohols that resemble sugar and are
used as sweeteners.
Rainforest Alliance
Certified standards for farming of cocoa
with a number of social and environmental
criteria, merged with UTZ.
RSPO
Roundtable for sustainable palm oil,
certification and standard for the palm oil
we purchase, 100% segregated.
Science-based target
A specific goal set by a company to reduce
its greenhouse gas emissions in alignment
with the latest climate science.
Science Based Targets initiative (SBTi)
A collaborative effort that supports com-
panies to set ambitious and scientifically
aligned targets for reducing greenhouse
gas emissions.
SMETA
An audit procedure developed by Sedex
to assess working conditions and environ-
mental performance within both the
business and the supply chain
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Definition/calculation Purpose
Margins
Gross margin
Net sales less cost of goods sold as a percentage of net
sales.
Gross margin measures production 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.
Operating profit
margin, adjusted
Operating profit, adjusted for items affecting comparability,
as a percentage of net sales.
Operating profit margin, adjusted excludes the impact of
items affecting comparability, enabling a comparison of
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
Free cash flow
Sum of the cash flow from operating activities and cash
flow from investments in property, plant and equipment and
intangible assets.
The free cash flow is the cash flow available to all investors
consisting of shareholders and lenders.
Free cash flow yield
Free cash flow over the last 12 months divided by the number
of shares at the end of the period and subsequently divided
by the market price per share at the end of the period.
This metric is an indicator of the return on investment of
investors in the company.
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
percentage of total equity.
Return on equity is used to measure profit generation, given the
resources attributable to the owners of the Parent Company.
Capital structure
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 company.
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 adjusted
EBITDA 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 from 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 end
of the period.
The net debt/equity ratio measures the extent to 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.
Definitions
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.
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Definition/calculation Purpose
Data per share
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 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 out-
standing shares adjusted for the effect of forward contracts
to repurchase own 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 out-
standing shares at the end of the period.
Equity per share measures the net-asset value backing
up each share of the company’s equity and determines if a
company is increasing shareholder value over time.
Other definitions
Amortisation
Amortisation of intangible assets except for amortisation on
software which is included in “Depreciation”.
Amortisation deviates from depreciation where amorti-
sation has the purpose to spread capitalised expenses over
the useful lifetime of these expenses.
Depreciation
Depreciation of property, plant and equipment and amortisa-
tion of software.
Depreciation deviates from amortisation where depreci-
ation has the purpose to spread the cost of a non- current
asset over the useful lifetime of these assets.
EBITDA
Operating profit before depreciation and amortisation. EBITDA is used to measure the cash flow generated from
operating activities, eliminating the impact of financing and
accounting decisions.
EBITDA, adjusted
Operating profit, adjusted for items affecting comparability,
before depreciation and amortisation.
Adjusted EBITDA increases the comparability of EBITDA.
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 equiva-
lents 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 of the
financing structure of the company.
Operating profit
(EBIT), adjusted
Operating profit, adjusted for items affecting compa rability. Adjusted EBIT increases the comparability of EBIT.
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 of 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.
172 Cloetta Annual and Sustainability Report 2024
CEO
comment
Targets &
strategy
Market &
consumer
Sustainability
Main
markets
Share &
shareholders
Financial
performance
Risks & Corporate
Governance
Sustainability
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is available on www.cloetta.com/en/governance/general-meetings/.
This document is a translation of the Swedish language report version. In the event of any discrepancies between the translation and the
original Swedish version, the latter shall prevail. Production: Cloetta in collaboration with Vero Kommunikation. Photos: Cloetta's archives.
Annual and Sustainability Report 2024
The report is available digitally in English and Swedish and can be
downloaded from www.cloetta.com. Physical copies are available at
Cloetta’s HQ, Landsvägen 50A, 17263 Sundbyberg, Sweden.