Cloetta (CLA) Q2 2025 earnings summary

Executive summary

• Achieved strong quarterly growth and improved profitability, with organic sales up 6.5% and adjusted operating margin at 11.5% in Q2 2025, supported by seasonal factors, brand investments, and strategic initiatives.

• Operations span 11 countries, focusing on core markets and expanding Superbrands, with new global agreements and expansion in North America and Europe.

• Pick & mix segment delivered 21.3% organic growth and its sixth consecutive profitable quarter, while Branded packaged grew 1.0%.

• Announced organizational restructuring and new leadership appointments to align with strategy and drive profitability.

• New global supplier agreement with IKEA and further expansion in North America signal growth beyond core markets.

Financial highlights

• Q2 2025 net sales reached SEK 2.1bn, with organic growth of 6.5% year-over-year and adjusted operating profit margin at 11.5%.

• Free cash flow for Q2 was -SEK 8m due to seasonal working capital, but H1 free cash flow improved 50% year-over-year to SEK 191m.

• Net debt/EBITDA at 1.4x, the lowest ever for a dividend-paying quarter, with net debt at SEK 1.7bn.

• Gross margin for Q2 2025 at 34.8%; adjusted operating profit margin at 11.5%.

• Profit for the period grew 41.5% to SEK 116m; EPS at SEK 0.41, up from SEK 0.29 year-over-year.

Outlook and guidance

• Organic growth for H2 2025 expected to be close to the new long-term target of 3-4%.

• Long-term adjusted EBIT target remains at 14%, with a minimum of 12% by 2027.

• Up to 20% of annualized savings from SEK 60-70m restructuring expected in H2 2025, with full effect in Q1 2026.

• Dividend policy updated to a minimum 50% payout of profit after taxes.

• Refinancing of loans progressing, expected to be finalized in H2 2025.