Slide 1: 2023 results
2023 results 26 April 2023 Henri de Sauvage-Nolting, President/CEO Frans Rydén, CFO Nathalie Redmo, IR
Slide 2: Agenda
Agenda 1. Quarterly update 2. Financials 3. Strategic update 4. Q&A 2
Slide 3: Key messages
Key messages Very strong and profitable growth, further supported by the earlier Easter • Strong growth in Branded, driven by pricing enabled by strategic marketing investments • 8th quarter of volume growth in Pick & mix, generating cost efficiencies and improved profitability • Pricing corresponds
Slide 4: Financials
Financials 4
Slide 5: Net sales
Net sales Strong sales primarily driven by well executed pricing to offset input cost in both segments First quarter +28.1% + 4.6% 1,973 + 23.5% 1,540 Branded packaged: + 20.5% Pick & mix: + 32.7% Q1 ’22 Organic growth FX Q1 ’23 5
Slide 6: Sales development
Sales development 20.5% Branded, % of Q1 ‘23 sales 9.3% 10.2% 7.3% 8.2% 6.1% 3.6% 3.6% 2.5% 4.0% 2.5% 1.7% -2.5% -3.6% -6.3% 73% Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Pick & mix, % of Q1 ’23 sales 79.6% 32.4% 32.7% 21.6% 23.8% 24.4% 27% 15.7% 21.0%
Slide 7: Operating profit, adjusted
Operating profit, adjusted Improved profit from growing volumes, favorable mix and cost efficiencies • Significant pricing implemented in Q1 Operating profit, adjusted offsets higher input cost First quarter • Improved profit driven by Pick & mix 10.1% volumes, favorable mix in the Branded 200 packa
Slide 8: Operating profit, adjusted by segment
Operating profit, adjusted by segment Branded profit driven by mix and efficiencies; Pick & mix driven by volumes and efficiencies Branded packaged 12.7% • Branded packaged mix driven by strong 12.8% 184 performance from pastilles and gum as well 149 35 as favorable geographical mix • Volume growth
Slide 9: SG&A
SG&A Cost driven by annual salary increases across all markets and merchandising to drive Pick & mix volumes First quarter 26.4% 22.3% -33 2 -407 -16 -19 -440 Q1 ’22 Items affecting FX Net SG&A Q1 ’23 comparability 9
Slide 10: Cash flow
Cash flow Negative effect on working capital due to higher input cost offset by stronger profit 202 Q1 ‘23 • Normal seasonal pattern of increase in -178 working capital, exacerbated by the effect of higher input cost: Higher input cost -47 drives inventory values and pricing to -23 offset those cost
Slide 11: Financial position
Financial position Continued strong financial position • Net debt not exceeding SEK 2.0bn despite unfavourable revaluation impact • Leverage at 2.0x remains well below long-term target of 2.5x • Unutilised access to cash of SEK 3.8bn Access to cash 4.5 5 000 3.8 Covenant 4.0 4 500 0.5 4 000 3.5 Net
Slide 12: Strategic update
Strategic update 12
Slide 13: Sharper brand platform
Sharper brand platform Design and portfolio growing in strategic and complimentary channels SHARPER BRAND PLATFORM, ACCELERATING AMAZON (US) EXPANDING TRAVEL RETAIL DESIGN & PORTFOLIO Growing distribution at new and existing partners Strong development, leveraging Easter to establish brand. Focus on
Slide 14: Focus on growing core brands
Focus on growing core brands Effectively serving undamped consumer appetite for news Trial through Triple Treat Accelerating refreshment recovery The next favourite flavor is out! Big Pack Unique mix of 3 fruity top sellers: NEW Tupla Banana with impactful Raspberry Licorice, Strawberry Lime, Lemon
Slide 15: Building CandyKing as a Brand
Building CandyKing as a Brand TÄVLA & VINN! • Top-tier consumer media placements generated during Q1 • Our social media keeps building on the success from 2022 • CandyKingSE on TikTok is one of the largest corporate confectionary TikTok accounts in Sweden • ~8m views on CandyKing TikTok in Q1 only 1
Slide 16: Design work for the new greenfield finalised
Design work for the new greenfield finalised 16
Slide 17: Q&A
Q&A 17
Slide 18: Thank you!
Thank you!
Slide 19: Appendix
Appendix 19
Slide 20: Greenfield facility – Pro forma profit and loss Q1
Greenfield facility – Pro forma profit and loss Q1 Impact financial reporting Q1 2023, Greenfield Q1 pro forma Other items Q1 2023, reported excl. affecting adjusted greenfield comp. Net sales 1,973 1,973 1,973 Cost of goods sold -1,355 -20 -1,335 -1,335 Gross profit 618 -20 638 638 Selling expenses
Slide 21: 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