Cloetta (CLA) investor relations material

Executive summary

• Delivered exceptionally strong profitability in Q2 2026, with Superbrands performing well and all long-term financial targets met for H1.

• Strategic focus remains on core markets (Sweden, Denmark, Norway, Finland, Netherlands) and expansion into the UK, Germany, and North America, with notable launches and pilot projects.

• Enhanced operating model, operational efficiency, and supply chain improvements are driving sustainable, profitable growth.

• Expansion milestones include launching Läkerol in the Netherlands and a nationwide U.S. rollout of Superbrand products.

• Branded packaged products delivered robust organic growth, while Pick & Mix declined due to Easter timing.

Financial highlights

• Organic growth reached 3.8% for H1 2026, at the upper end of the 3%-4% long-term target.

• Q2 net sales reached SEK 2,087m, up 0.4% year-over-year; organic growth was 0.8%.

• Adjusted operating profit margin was 14.9% in Q2 and 13.9% year-to-date.

• Free cash flow for H1 was SEK 230 million, up SEK 39 million year-over-year.

• Net debt/EBITDA at 0.8x, lowest ever for a Q2, despite record dividend payout.

Outlook and guidance

• Expectation to reach the 12% mid-term operating margin target for 2027 already in 2026.

• Margin in H2 expected to be lower due to increased marketing and one-off costs for geographic expansion.

• CapEx to rise to 4%-5% of net sales in coming years, with step-up visible from next year or 2027.

• U.S. and Germany expansion to build gradually; initial U.S. rollout will not significantly impact 2026 growth.

• Inflation and input cost pressures expected to persist, but mitigated by product portfolio and pricing strategy.