Cloetta to axe 30 jobs as Italian sales slump continues

By Oliver Nieburg contact

- Last updated on GMT

Related tags: Italy, Jelly bean, Confectionery, Cloetta

Cloetta to chop 30 jobs in Italy
Cloetta to chop 30 jobs in Italy
Scandinavian confectioner Cloetta plans to cut 30 employees in Italy after sales in the market declined for the fourth consecutive quarter.

The group today reported a 15.1% drop in net profits for the fourth quarter and an 8.3% drop for the full-year.

Italian job cuts

Net sales were up for the fourth quarter and full-year, but the company posted declines in the UK, Germany and Italy.

Cloetta president and CEO Bengt Baron said: “The decline in sales and weak market development in Italy make it necessary to adapt the organization. Cloetta therefore intends to decrease the Italian organization by approximately 30 employees.“

Cloetta previously said Italian trade was suffering from a tough macroeconomic environment and a reduction in payment terms from over 100 days to 60 days.

Italy is among Cloetta’s five main markets along with Sweden, Norway, Denmark and Finland.

cloetta q4 product launches

Sales growth from acquisitions

cloetta pick and mix
Cloetta's natural snacks & candy pick-and-mix to pull in $23.7m sales in 2015.

Cloetta’s net profit fell 15.1% in Q4 to SEK 158m ($18.8m), but net sales for the quarter were up 9.6% to SEK 1.58bn ($188m) with 4.8% of growth coming from acquisitions.

The company reported strong sales from Nutisal, acquired in December 2013 and from the Jelly Bean Factory, acquired in May 2014.

During Q4, Cloetta introduced a novel pick-and-mix concept at Coop Sweden that combines candy and natural snacks.  It expects the concept to boost sales by SEK 200m ($23.7m) in 2015. Pick-and-mix currently accounts for 30% of the firm’s sales in Sweden.

Related topics: Manufacturers, Chocolate, Candy, Gum

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