Lindt & Sprüngli strengthens market position

With organic sales growth of 6%, Chocoladefabriken Lindt & Sprüngli AG once again successfully achieved its strategic growth target. In fact, it grew significantly faster than the markets in an economic and currency environment which became progressively more difficult. According to the company, thanks to this good performance, further market shares were gained practically everywhere and in all categories. Conversion into Swiss francs results in Group sales of CHF 2.489 bn (previous year: 2.579 bn) reflecting the particularly negative exchange rate impact of - 9.5%, mainly on € and USD.

On flat to slightly declining chocolate markets, all the subsidiary companies, with the exception of Australia, grew faster than the markets and gained important market shares. Particularly pleasing is the fact that the company outstripped the average organic growth of the Group in its most important and biggest markets with LINDT and GHIRARDELLI in the USA and LINDT in Germany and France. With an operating profit of CHF 328.7 m (previous year: CHF 325.3 m), the Group was able to improve its operating EBIT margin by 60 basis points to 13.2% which is above the long-term objective of 20 to 40 basis points annually. Together with the operating profit, the net income has increased more than proportionally against the sales figures in Swiss francs; this results in a higher return on sales rate of 9.9% (previous year: 9.4%).

Outlook for 2012: Thanks to a robust earnings and financial situation as well as a corporate strategy which remains forward-looking and has proved its merits even in hard times, the group of companies is well placed to face the coming challenges, and is maintaining its long-term success targets which provide for annual organic growth of 6 to 8% with an increase of the EBIT margin by 20 to 40 basis points each year.

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