Cloetta AB, a confectionery company operating in the Consumer Staples sector, has reported a significant improvement in profitability despite a slight decrease in revenue for the first quarter of 2025. The company’s interim report for January to March 2025 highlights an exceptionally strong profitability improvement driven by its broad product portfolio.

The company’s revenue decreased by 2.6% to SEK 2,039 million compared to the same period last year. However, Cloetta’s adjusted operating profit increased to SEK 225 million from SEK 192 million in the first quarter of 2024, marking a notable rise in profitability. The adjusted operating margin strengthened to 11.0% from 9.2% in the same period last year.

Cloetta’s management expects the first half of the year to show a clearly profitable sales growth, despite the impact of the delayed Easter holiday on sales. The company attributes the strong profitability improvement to the strength of its diverse product range, which includes chocolate confectionery products like pralines, chocolate wafers, and sugar confectionery products such as foams, wine gums, and hard candies. These products are sold under various well-known brands including Kexchoklad, Polly, Center, Plopp, Tupla, Royal, Sportlunch, Bridge, Malaco, Red Band, Ahlgrens bilar, Venco, Chewits, Juleskum, Lakerol, Mynthon, King, Jenkki, Sportlife, Xylifresh, and Nutisal.

The company’s shares have seen a positive reaction on the Swedish Stock Exchange, with Cloetta’s stock price rising in the initial trading following the release of the financial report. The company’s shares were among those that reached new 52-week highs on the Stockholm Stock Exchange on May 7, 2025.

Despite the revenue decline, Cloetta’s improved profitability is expected to continue, driven by the company’s broad product portfolio and strong market presence in approximately 50 markets worldwide.