Q3 2025 Cloetta AB Earnings Call Transcript
Key Points
- Cloetta AB (CLOEF) reported a strong uplift in profitability, with an EBIT margin reaching 11.9% for the quarter, bringing the rolling 12-month profitability to 11.4%.
- The company achieved stable, profitable organic sales growth of 1.3% for the quarter, with strong performance in the Nordic region and North America.
- Cloetta AB (CLOEF) has successfully implemented a strategic framework focusing on its 10 super brands, core markets, and innovation, which is expected to drive future growth.
- The company reported a strong financial position with a net debt to EBITDA ratio of 1.1, which is below their target of 1.5, indicating strong cash flow management.
- Cloetta AB (CLOEF) has initiated successful product launches, such as Malacco Fruity Drops and Shoewi Softbites, which align with consumer trends and sustainability goals.
- Sales outside the Nordic region faced challenges due to changing retailer dynamics and geopolitical uncertainties, impacting overall growth.
- The company experienced currency headwinds as the Swedish krona strengthened, affecting reported sales figures.
- Inflationary pressures and high cocoa prices continue to impact the confectionery market, posing challenges for cost management.
- The UK and German markets remain challenging, with the UK previously reporting negative taxable results, affecting overall profitability.
- Despite strong performance in some regions, the branded package segment saw a decline in organic sales by 1.8%, highlighting regional disparities in performance.
A warm welcome and thank you for joining Cloeta's Q3 interim report presentation. I'm Laura Lindholm, the director of communications and investor relations. Our CEO Katerina and CFO Franz will first go through our results, after which we will move to the Q&A where you either have the possibility to dial in and ask questions live, or alternatively post your question through the chat. The chat has now opened for questions. Over to you, Katerina.
Thank you, Laura. I'm very proud to present our 3rd quarter results. We have now successfully established a strong uplift in profitability. We are steadily approaching our midterm target of an EBIT margin of at least 12% by 2027, and this quarter is an important milestone on our continued focus on driving profitable growth.
First over to the agenda today it looks as following.
I will start with Greta in a brief, then I recap on our strategic framework and our updated financial targets that we shared shared earlier this year. After that,
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