Cloetta (CLA) Q4 2024 earnings summary

Executive summary

• Achieved another year of profitable growth, with an exceptionally strong Q4 and continued sales momentum, driven by organic expansion and robust Pick & mix performance.

• Net sales for 2024 reached SEK 8.6 billion, with Q4 net sales at SEK 2.3 billion, up 5.7% organically year-over-year.

• Pick & mix segment grew 17.3% organically in Q4, outpacing Branded packaged products, and now represents 28% of total sales.

• Maintained double-digit adjusted operating profitability despite raw material cost inflation, with Q4 adjusted operating profit at SEK 258 million and full-year at SEK 910 million.

• Net debt/EBITDA at an all-time low of 1.3x, well below the long-term target.

Financial highlights

• Q4 net sales: SEK 2,285m (+5.7% organic growth); full-year net sales: SEK 8,613m (+4.7% organic growth).

• Q4 adjusted operating profit: SEK 258m; full-year: SEK 910m; Q4 profit for the period: SEK 158m; EPS: SEK 0.55.

• Q4 adjusted operating margin: 11.3%; full-year: 10.6%, up 100 basis points from 2023.

• Free cash flow for the year was SEK 602m, up SEK 106m from 2023.

• Dividend proposal of SEK 1.10 per share, up from SEK 1.00, in line with policy.

Outlook and guidance

• Greenfield plant project in the Netherlands remains on hold due to energy supply risk, with reassessment expected by end of Q1 2025.

• Marketing investments expected to increase year-over-year in 2025, with a flexible approach based on market conditions.

• Confident in ability to manage high input costs, including cocoa, through pricing and other measures.

• CapEx guidance and greenfield project update to be provided at the upcoming investor day.

• Mid-term target remains at ≥14% adjusted operating profit margin.