Sweden's Cloetta Q3 net sales rise; hits mid-term profit target ahead of schedule

Overview

• Sweden confectionery maker's Q3 net sales rose 2.6% yr/yr to SEK 2,233 mln

• Adjusted EBIT for Q3 increased to SEK 283 mln from SEK 259 mln

• Company cites volume growth, product mix and efficiency as drivers of results

Outlook

• Company says it has reached its mid-term profitability target ahead of schedule

• Company expects continued benefits from strategy execution and volume-driven growth

Result Drivers

• VOLUME GROWTH - Co said both Branded packaged products and Pick & mix segments saw volume-driven growth

• PRODUCT MIX - Co attributed results to a favourable product mix, per CEO Katarina Tell

• OPERATIONAL EFFICIENCY - Co said strong operational efficiency contributed to improved profitability, per CEO Katarina Tell

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for Cloetta AB is SEK64.00, about 7.5% above its November 3 closing price of SEK59.55

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• Nov 4 - Barry Callebaut sees weaker-than-expected profit for FY 2026/27

• Nov 3 - Primark-owner AB Foods forecasts further profit decline as sugar losses deepen

• Nov 3 - UK's Associated British Foods FY revenue, profit beat estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)