Cloetta AB, a leading confectionery company in the Consumer Staples sector, has reported a significant improvement in profitability despite a slight decrease in sales for the first quarter of 2025. The company, which operates under various brands such as Kexchoklad, Polly, Center, and Plopp for chocolate confectionery, and Malaco, Red Band, and Ahlgrens bilar for sugar confectionery, has seen its earnings rise sharply, driven by a broad product portfolio.

According to the interim report released on May 7, 2025, Cloetta’s net sales for the first quarter decreased by 2.6% to 2,039 million SEK, compared to 2,094 million SEK in the same period last year. The organic sales growth was -1.1%, influenced by the delayed Easter holiday which had a negative impact on sales. Despite this, Cloetta’s adjusted operating profit surged to 225 million SEK from 192 million SEK in the same period last year, with the adjusted operating margin increasing from 9.2% to 11.0%.

Katarina Tell, CEO and Group CEO of Cloetta, commented on the report, stating, “Cloetta delivers yet another quarter with a strong improvement in profitability, driven by the strength of our broad product portfolio, despite continued high raw material costs. The exceptionally strong profitability improvement was also achieved despite the impact of the delayed Easter on sales.”

The company’s adjusted operating margin, a key indicator of profitability, has seen a significant boost, reflecting the company’s ability to manage costs effectively and maintain strong pricing discipline. Cloetta’s strong performance is expected to continue into the second quarter, with the company anticipating a “clearly” profitable sales growth for the first half of the year.

The stock market responded positively to the report, with Cloetta’s share price increasing in the early trading session on May 7, 2025. The company’s shares opened higher, reflecting investor confidence in the company’s ability to maintain its profitability despite challenging market conditions.

Looking ahead, Cloetta’s diversified product portfolio and strong brand presence in approximately 50 markets worldwide position the company well to navigate through market fluctuations and continue delivering strong financial results. The company’s focus on cost management and strategic investments in its product offerings will be key drivers of future growth and profitability.