Q2 2024 Cloetta AB Earnings Call Transcript
Key Points
- Cloetta AB (CLOEF) reported a strong quarter with improved profitability.
- The company achieved 1.8% organic net sales growth, marking over three years of consecutive quarterly growth.
- Net debt over EBITDA of 1.8x is the lowest ever for Q2, indicating a strong financial position.
- The divestment of the Nutisal brand is part of a strategic move to streamline the brand and product portfolio, supporting long-term goals.
- Cloetta AB (CLOEF) continues to see stable underlying volumes despite taking significant pricing actions.
- Cocoa prices continue to rise, posing a challenge for input costs and potentially compressing margins.
- The overall environment remains more stable than last year, but some costs, such as packaging, are still increasing.
- The company faces tougher comparators from prior periods, which already included significant pricing to offset higher input costs.
- There is a lag between when costs increase and when new pricing comes into effect, potentially impacting short-term profitability.
- Despite strong results, the company acknowledges that it is premature to state that they have sustainably reached their mid-term target for the pick & mix segment.
Thank you for joining Cloetta Q2 interim report presentation. I'm Laura Lindholm, Director of Communications and Investor Relations. Our CEO, Katarina; and CFO, Frans will first go through our Q2 and H1 results after which we will move to the Q&A where you either have the possibility to dial in and ask questions [slide] or alternatively post your questions through the chat. (Event Instructions)
Over to you, Katarina.
Thank you, Laura. Before we move on to the result, as I am the new president and CEO. I would like to take the opportunity to introduce myself. I joined Cloetta in May 2018 as member of the group Executive Management team and with the responsibility for Sweden, terrific largest geographical market. As you know, from our reporting, Sweden has certainly hold its shared at Cloetta sales during these years of strong growth.
But while we do not report profit per market, you all do know that Cloetta five years ago was
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