Cloetta was plunged into turmoil recently after the Swedish Economic Crime Authority revealed that certain executives within the company had been detained after being suspected of insider trading.
The people concerned have been kept confidential so their names cannot be revealed, but the detainment is linked to stock sales made by the personnel in question, which took place before Cloetta announced a profit warning on the 14th September this year.
Speaking in a press release addressing the situation, Cloetta kept things brief but said they will fully comply with the authorities and assist in whatever way they can, while also claiming that the company had already investigated the share sales in question.
“Cloetta will fully cooperate with the Economic Crime Authority in the investigation,” the company stated. “Cloetta has previously, at its own initiative, through the law firm Cederquist, conducted an investigation of the share sales.”
The news will come to a blow to Cloetta, who are the market leader in Sweden’s sugar confectionery and pastilles market according to their 2016 Annual Report, which also puts them ahead of Mondelēz International.
In September, the company had warned that their third quarter profits would take a significant dent following a fire at a production lines at one of their key factories in Turnhout, Belgium, back in June.
At the time, the company claimed that their Q3 adjusted operating profit would be SEK 40-50m ($5m-$6.3m) lower than the same stage for 2016.
Cloetta are set to reveal their Q3 results on the 25th October.