Cloetta Fazer reports higher sales but lower profit for first half of 2008

Cloetta Fazer reports higher sales but lower profit for first half of 2008 

Cloetta Fazer's net sales for the second quarter rose by SEK 80 million to SEK
738 million. Operating profit amounted to SEK 7 million (33) excluding a
goodwill impairment charge of SEK 90 million arising from the upcoming demerger
of Cloetta Fazer. Operating margin was 1% (4.9%).

“Like the first quarter, the second quarter of 2008 was characterised by lower
gross margins resulting from increased raw material costs and higher selling and
marketing expenses,” says the company's CEO Jesper Åberg.

Total sales for the first half of the year rose by 9% to SEK 1,520 million
(1,398). The increase in sales for the period is mainly explained by
acquisitions and volume growth. Operating profit for the first six months
excluding the impairment charge of SEK 90 million was SEK 54 million (112).

“The implemented price increases have not been sufficient to offset higher raw
material costs, which has impacted gross margins and contributed to the year's
weak earnings trend,” adds Jesper Åberg.”

The demerger of Cloetta Fazer has led to a goodwill impairment charge of SEK 90
million owing to decreased sales in the new Cloetta, which in the future will
not include sales of Fazer products in Sweden.

The information from Cloetta Fazer contained herein is subject to the disclosure
requirements in the Swedish Securities Market Act. The information was submitted
for publication on 20 August 2008, 12:05 p.m.

For additional information contact:
Jesper Åberg, CEO and Managing Director, mobile +46 70-180 21 01 
Curt Petri, CFO and Deputy Managing Director, mobile +46 70-593 21 69
Website: www.cloettafazer.com

About Cloetta Fazer
Cloetta Fazer is the Nordic region's leading confectionery company, with a
market share of around 22 per cent. The company has production facilities in
Sweden and Finland. Cloetta Fazer's strength lies in its many popular brands,
such as Karl Fazer, Kexchoklad, Dumle, Geisha, Polly and Center. The average
number of employees is around 1,600 and annual sales amount to approximately SEK
3.3 billion.