Candyking has booked a drop in operating profit – despite sales growth – as currency exchange pushed up the cost of goods sold at the Swedish confectioner.
In the six months to the end of June, underlying EBIT fell to SEK29.2m (US$4.2m), down 36.5% from SEK46m in the comparable period of last year. Net losses rose to SEK53.6m, up from a loss of SEK33.8m last year.
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Candyking sought to improve its margin profile in the period by exiting “unprofitable” markets in central Europe, including Slovakia, the Czech Republic and Hungary. At the same time, the group has stepped up its efforts in markets such as Poland.
The confectioner said new customers in Poland and Denmark, coupled with a “strong” Easter in Norway, drove a 3.7% rise in sales volumes. In value terms, net sales rose 4.8% to SEK904.7m.
