Swedish confectionery maker Cloetta has announced new strategic priorities to drive growth and updated its financial targets ahead of an investor day event.
The updated strategy and financial targets will be presented in detail at the event today (27 March) in Stockholm.
Cloetta’s long-term organic sales growth target has been increased to 3-4% per year, up from a previously announced goal of growth of 1-2%.
The group’s long-term adjusted EBIT margin target remains unchanged at 14%, with the addition the company is aiming to reach at least 12% by 2027.
In terms of strategy, the Candy King pick-and-mix brand owner has outlined three priorities.
The first is to win with its so-called “super” brands. Cloetta is planning to focus across its core markets on ten selected brands to drive profitable growth through increased distribution and by continuing to take the brands into new categories.
The second is to grow beyond the group’s core markets with an increased focus on Germany and the UK as the European countries with the largest confectionery retail sales and the highest per capita consumption. Cloetta is also eyeing North America to build on demand for Swedish candy.
Its third strategic priority is to “excel in marketing and innovation” by accelerating new product development supported by “continued marketing effectiveness”.
Cloetta said it would use net revenue management, develop a supply chain “fit for purpose” and build an effective operating structure, as well as selective M&A.
Katarina Tell, Cloetta’s president and CEO, said: “Cloetta is committed to continue to drive profitable growth and strengthening our market position through clear strategic priorities and a more focused execution.
“Our updated financial targets and strategic priorities reflect our ambition to accelerate growth, enhance efficiency and leverage our strong brands across core markets and beyond. With a sharpened focus on innovation, marketing effectiveness and operational excellence, we are well-positioned to create long-term value for our consumers, customers and shareholders.”
In February, Cloetta scrapped plans for a new confectionery plant in the Netherlands after the company concluded it could maintain long-term financial and operational flexibility without the new facility.
It had originally announced plans for the greenfield investment in 2022 while shuttering three existing confectionery facilities in the Netherlands and Belgium.
Tell said in a statement at the time: “With this decision, we create the opportunity for a fit-for-purpose supply chain, enhance our possibility to strengthen our market presence and grow our product portfolio, and ensure continued strong consumer engagement.”
Last June, Cloetta announced the sale of its Nutisal roasted nuts brand to Dutch peer The Monchy Food Company for €5m to €6m ($5.4m to $6.5m at the time) to focus on its core confectionery brands.
In January, Cloetta reported net sales of Skr8.61bn ($855m) for 2024, reflecting 3.8% year-on-year growth.
Operating profit, adjusted for items affecting comparability, rose 13.9% for the year to Skr910m. Net income was up 9.2% at Skr477m.
