Sweden's Cloetta Q2 net profit nearly doubles on product mix, operational efficiency
Sweden's Cloetta Q2 net profit nearly doubles on product mix, operational efficiency
Overview
Sweden confectionery maker's Q2 organic sales rose 0.8%, led by branded packaged products; net sales rose 0.4%
Adjusted EBIT for Q2 rose 29% yr/yr; pick & mix sales declined due to earlier Easter
Net income for Q2 nearly doubled yr/yr to SEK 218 mln
Outlook
Company did not provide specific guidance or outlook for the current or future periods
Result Drivers
BRANDED PACKAGED PRODUCTS - Organic sales growth driven by strong volumes and positive development of Superbrands in core markets
EASTER TIMING - Pick & mix sales declined as expected due to earlier Easter
PRODUCT MIX AND EFFICIENCY - Exceptional profitability attributed to favourable product mix and strong operational efficiency
Company press release: ID:nWkr750v7j
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Income |
| SEK 218 mln |
|
Q2 Adjusted EBIT | Beat | SEK 310 mln | SEK 260.55 mln (2 Analysts) |
Q2 Adjusted Free Cash Flow |
| SEK 126 mln |
|
Q2 EBIT |
| SEK 310 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Cloetta AB is SEK57.50, about 18.1% above its July 14 closing price of SEK48.70
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 20 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)