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Investing.com -- Swedish confectionery maker Cloetta AB (ST:CLOEb) reported a significant jump in first quarter profit on Wednesday, despite a slight decline in sales, sending its shares up 5% in early trading.
The company’s operating profit soared to SEK 350 million ($32.8 million) in the first quarter, up from SEK 193 million in the same period last year.
Adjusted operating profit, which excludes items affecting comparability, rose to SEK 225 million from SEK 192 million YoY.
Net sales for the quarter decreased by 2.6% to SEK 2,039 million, impacted by the divestment of the Nutisal brand and foreign exchange rates.
Organic sales of branded packaged products fell 3.4%, while pick & mix sales grew 4.6% organically.
"Cloetta delivered yet another quarter of profitability improvement driven by the strength of our broad confectionery portfolio and despite the continued high raw material costs," said CEO Katarina Tell (WA:OEXP).
She noted that the strong profit growth came "despite the later occurrence of Easter affecting sales."
The company’s net debt/EBITDA ratio improved to 1.1x from 1.6x a year earlier, reflecting stronger cash flow generation.
Cash flow from operating activities increased to SEK 231 million from SEK 149 million in the prior-year quarter.
Earnings per share jumped to SEK 0.89 from SEK 0.37 in the first quarter of 2024, as profit for the period more than doubled to SEK 253 million.