Scandinavian confectioner Cloetta says it will explore potential acquisitions to drive growth after profits declined in the first quarter.
The company’s sales grew 5.9% to SEK 1.2bn ($183m) in Q1, but operating profit (EBIT) fell 15% to SEK 77m ($11.8m).
“The change is mainly due to decreased production volumes, changes in exchange rates, and – to drive continued growth – investments in marketing and sales campaigns,” said Cloetta president and CEO Bengt Baron.
Cloetta acquired Swedish dried nuts market leader Nutisal in January and is currently integrating the business.
“To further accelerate the growth rate, acquisitions such as Nutisal play an important role, but potential new acquisitions are also possible in order to further drive growth,” said Baron.
The CEO said that confectionery markets in Norway, Sweden and Demark developed well in Q1 and the Netherlands also saw an uptick. But confectionery sales in Finland declined and Italian sugar confectionery also took a hit.