Cloetta updates on greenfield investment and confirms ambition to propose continued stable dividend

During today’s investor event, management will give an update on the plan to invest in a new greenfield facility in the Netherlands and close three existing plants. In addition to the previously communicated annual EBIT delivery, Cloetta has quantified the value of enabled insourcing and long-term growth, as well as the net increase of capex as a result of the greenfield investment. Financing has been committed by Cloetta’s existing banking group at competitive rates, and the Board expresses the ambition to continue to propose a stable dividend in line with 2021 of SEK 1.00 per share.

At today’s digital investor event starting at 2 pm (CEST), Cloetta will present the following:

• Dividend: The Board expresses the ambition to continue to propose a stable dividend in line with 2021 of SEK 1.00 per share.

• EBIT upside: In addition to the previously communicated annual EBIT delivery of SEK 160 to 180m through savings and initial growth, Cloetta expects further savings of SEK 20m from insourcing by 2026. Total net headcount reduction is estimated to approximately 150 FTEs. Furthermore, Cloetta estimates the annual EBIT upside from long-term growth to reach SEK 40 to 60m, resulting in a total annual EBIT delivery of SEK 220 to 260m by 2032.

• CAPEX: The net increase in capex to create a new network is estimated at SEK 1.9bn during 2023-2032 compared to historical levels, as the greenfield investment of SEK 2.5bn will result in avoided capex of SEK 0.6bn.

• Financing: Financing through new credit facilities, totaling EUR 160m, has been committed by Cloetta’s existing banking group at competitive rates that are marginally higher than on existing facilities. Cloetta expects net debt/EBITDA to be back at the long-term target of 2.5x in 2026; one year later if 3M EURIBOR increases by 200 bps.

"With the planned investment in a state-of-the-art production platform, we will achieve a more efficient manufacturing structure with a flexibility to tackle higher labour and energy costs, as well as significant cost savings and further production capacity. At the same time this enable us to continue our sustainability path and secure and improve on the delivery on Cloetta’s long term profitability target”, says Henri de Sauvage-Nolting, President and CEO of Cloetta.

Presentations will be held by Henri de Sauvage-Nolting, President and CEO, Frans Rydén CFO and Marcel Mensink, President Operations (COO). The presentations will be held in English. It will be possible to submit questions via the webcast. A recording from the event will be available afterwards at www.cloetta.com.

Time for the investor event
Tuesday September 27 at 2-4 pm (CEST)

Dial-in number(s)
SE: +46 8 5051 0031
UK: +44 207 107 06 13
US: + 1 631 570 56 13

Link to the live broadcast
https://creo-live.creomediamanager.com/dbe8e384-f127-4129-ad9c-26c69b299550

This is information that Cloetta AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 08.20 CEST on September 27, 2022.