Cloetta (CLA) investor relations material

Executive summary

• Achieved strong organic net sales growth of 6.9% in Q1 2026, driven by higher volumes, successful product launches, and Easter sales phasing, with Pick & mix up 14.9% and branded packaged up 3.6%.

• Adjusted EBIT margin reached 12.9%, exceeding the 2027 target, even when excluding SEK 12 million compensation for a supplier quality issue.

• Both Branded Packaged and Pick & Mix segments delivered volume-driven, profitable growth, with Pick & Mix achieving double-digit growth.

• Net debt/EBITDA reached a record low of 0.6x, enhancing financial flexibility.

• Strategic focus on expanding superbrands, innovation, and geographic expansion, including progress in North America and a global IKEA contract now active in 14 markets.

Financial highlights

• Net sales grew 6.9% organically year-over-year, with reported growth of 3.6% after a 3.3% negative currency effect, reaching SEK 2,112m.

• Adjusted EBIT margin reached 12.9%; excluding compensation, margin was 12.4%, above the long-term target.

• Free cash flow for Q1 was SEK 144 million, up from below SEK 100 million in Q1 2024.

• Net debt/EBITDA ratio improved to 0.6x, the lowest ever, well below the target of 1.5x.

• Dividend of SEK 1.40 per share distributed in April, a 27% increase year-over-year.

Outlook and guidance

• Long-term organic growth target raised to 3–4% per year, with growth now expected to come primarily from higher volumes as inflation stabilizes.

• Adjusted EBIT target set at 14%, with at least 12% by 2027; current performance already exceeds this.

• CapEx guidance of 4–5% of net sales over the next five years.

• Continued focus on profitable growth, innovation, and expansion in and beyond core markets.

• Inflationary and geopolitical risks persist, but broad product portfolio and pricing strategy expected to mitigate impacts.