Cloetta mulls sale of Italian business, flags impairment (updated)
18/01/2017 12:28
(Adds detail, background)
Jan 18 (Reuters) - Swedish candy maker Cloetta CLOEb.ST
said on Wednesday it had launched a strategic review of its
Italian business with the aim to boost the group's growth and
margins, and it would book an impairment for the Italian unit in
the fourth quarter.
Says strategic review might include a divestment of
Cloetta Italy, which would improve Cloetta's EBIT margin
* Cloetta Italy impairment includes impairment of goodwill
and trademarks, will lead to a non-recurring cost item of 771
mln SEK before tax
Impairment will not affect Cloetta's net debt/EBITDA or
dividend capacity
* In 2016, Cloetta's sales in Italy amounted to 750 mln SEK.
In 2015, Italy sales accounted for 13 pct of group sales
* Cloetta shares fall 4.1 pct at 1224 GMT
* Cloetta's main markets, where Cloetta has its own sales
and distribution organisations, are Sweden, Italy, Finland, the
Netherlands, Norway and Denmark
* Cloetta said in 2016 that out of its markets', the Italian
grocery trade is the most fragmented, which among other things
demands a bigger sales organisaation
Source text for Eikon: ID:nWkrar0725
Further company coverage: CLOEb.ST
(Reporting by Rebecka Roos)
((stockholm.newsroom@thomsonreuters.com; +4687001017;))
Keywords: CLOETTA ITALY/