Slide 1: Q4 2023 results
Q4 2023 results 26 January 2024 − Henri de Sauvage-Nolting, President and CEO − Frans Rydén, CFO
Slide 2: Agenda
Agenda 1. Quarterly update 2. Financials 3. Strategic update 4. Q&A 2
Slide 3: A year of strong profitable growth – milestone of SEK 8bn in sales
A year of strong profitable growth – milestone of SEK 8bn in sales • First time in history exceeding annual SEK 8bn in net sales and SEK 799m in operating profit • Strong double-digit organic growth in Branded, primarily driven by pricing with relatively stable volumes • Strong double-digit organic
Slide 4: Financials
Financials 4
Slide 5: Net sales
Net sales First year with SEK 8bn in sales, driven by continued double-digit growth in both segments Fourth quarter 12 months +14.5% +20.8% + 2.8% 2 182 + 5.1% 8 301 + 11.7% + 15.7% 1 905 6 869 Branded +11.1% Branded +14.1% packaged packaged Pick & mix +13.6% Pick & mix +20.7% Q4 ’22 Organic growth
Slide 6: Sales development
Sales development 20.5% Branded, % of Q4 ‘23 sales 14.8% 9.3% 10.2% 10.9% 11.1% 7.3% 8.2% 6.1% 2.5% 4.0% 2.5% 1.7% -3.6% -6.3% 74% Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Pick & mix, % of Q4 ’23 sales 79.6% 32.4% 32.7% 26% 21.6% 23.8% 24.4% 22.4% 16.
Slide 7: Operating profit, adjusted
Operating profit, adjusted Continued strengthened Q4 leads to highest ever full year profit, despite compressed margins Operating profit, adjusted Fourth quarter 12 months • Pricing and cost control offsets inflation and negative 9.2% 9.6% currency effects in Sweden 9.6% 200 799 183 14 10.1% 48 and
Slide 8: Operating profit, adjusted, by segment
Operating profit, adjusted, by segment Branded packaged profit improved while Pick & mix remains in black despite administration of UK customer Fourth quarter 12 months 12.6% 12.3% 12.9% 12.8% 200 786 180 20 669 117 Branded packaged Q4 ’22 var. Q4 ’23 2022 var. 2023 0.6% 0.0% 1.3% 0.6% 22 Pick & mix
Slide 9: SG&A
SG&A Cost driven by annual salary increases across markets and currency translation effect Fourth quarter 12 months 24.2% 22.6% 24.2% 21.9% -33 -150 3 -4 -1 -461 -1 665 -60 -32 -89 -494 -1 815 Q4 ’22 Items FX Net SG&A Q4 ’23 2022 Items FX Net SG&A 2023 affecting affecting comparability comparability
Slide 10: Cash flow
Cash flow SEK 394m free cash flow driven by operating result and strong working capital Q4 ‘23 -84 394 • Improved free cash flow primarily 368 236 driven by strong working capital -26 242 • Strong working capital reflect lower receivables and inventories in line with normal seasonality, combined wit
Slide 11: Financial position
Financial position Continued strong financial position with leverage at an all-time low • Net debt/EBITDA at all-time low 1.7x and well below targeted 2.5x • Net debt decrease driven by favourable revaluation impact and generated cash • Unutilised access to cash of SEK 4.0bn • Dividend proposal of S
Slide 12: Strategic update
Strategic update 12
Slide 13: Greenfield: first major carbon emission-free candy factory in Europe
Greenfield: first major carbon emission- 3 free candy factory in Europe • Decision to build and operate the Greenfield facility fully electric • Technical ability confirmed • Change does not impact timeline • Contributes to Cloetta’s set Science Based Targets (SBTi) • Opportunity to shorten queue fo
Slide 14: Perfect factory: Creating capacity for further growth
Perfect factory: Creating capacity for 3 further growth 2 3 Focused approach to Using real time data to SAFETY improve performance make timely actions Total Injury rate improved with 18% in relation to 2022, including a significant improvement in severity level QUALITY • ITF • Factory OT Robust 2% q
Slide 15: Advancing our sustainability agenda towards a sweeter future
Advancing our sustainability agenda 4 towards a sweeter future Responsible & transparent Sustainable sourcing communication • Guidelines Key supplier • Trainings performance review on • Practices sustainability incl. Climate Action Anticipating the expected EU directive Advanced Sustainable on susta
Slide 16: Profitable Growth acceleration – fueling Refreshment offering for better reach
Profitable Growth acceleration – fueling Refreshment offering for better reach 1 Introducing novelties with attitude & exploiting brand Exciting, unexpected sweet flavor combinations to power to attract new consumers entice young consumers to category and brand Peaking penetration and outstanding Ne
Slide 17: CandyKing premiumisation into tax-free zone in Stockholm's main airport
CandyKing premiumisation into tax-free zone in Stockholm’s main airport 2 Arlanda P&M experience • ~13 m P&M shelves with 250 pieces to choose from • Terminal 5 footfall: 9 million travelers/year • P&M is one of the top 3 items that Swedish travelers miss when going abroad* • Launch generating PR in
Slide 18: Q&A
Q&A 18
Slide 19: Thank you!
Thank you!
Slide 20: Appendix
Appendix 20
Slide 21: Greenfield facility – Pro forma profit and loss Q4
Greenfield facility – Pro forma profit and loss Q4 Q4 2023 Q4 2023 Q4 2023 Other items Pro-forma Greenfield affecting Reported excl. Adjusted comparability greenfield Net sales 2.182 - 2.182 - 2.182 Cost of goods sold -1.514 -21 -1.493 - -1.493 Gross profit 668 -21 689 - 689 Selling expenses -300 -
Slide 22: Greenfield facility – Pro forma profit and loss YTD
Greenfield facility – Pro forma profit and loss YTD YtD Q4 2023 YtD Q4 2023 YtD Q4 2023 Other items Pro-forma Greenfield affecting Reported excl. Adjusted comparability greenfield Net sales 8.301 8.301 - 8.301 Cost of goods sold -5.751 -48 -5.703 - -5.703 Gross profit 2.550 -48 2.598 - 2.598 Selling
Slide 23: Disclaimer
Disclaimer • This presentation has been prepared by Cloetta AB (publ) (the “Company”) solely for use at this presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation does not constitute an