Lindt with above-average organic growth

With sales and profit figures well above the market average for the first half of the year, Lindt & Sprüngli has got off to a good start in 2012 and succeeded in gaining market shares on all the main markets. As of June 30, 2012, Group sales reached CHF 1.033 billion. Given the rather difficult market situation in Europe and North America, this represents good organic growth of 5.3% compared to the same period last year, with a further gain of substantial market shares. Particularly good progress was made on the key markets of Germany, France, and Switzerland. Lindt & Sprüngli’s growth in North America reached 6.7% in local currency terms. Innovative ideas for the creation of new events with premium chocolate as a gift item gave a lasting boost to business. For example, Lindt & Sprüngli became the market leader in Switzerland and Canada for Valentine’s Day. In Germany, the start of spring saw the successful launch of a FROSCHKÖNIG (Frog King) range, while new recipes in the unique CHOCOLETTI format added an innovative touch to the start of the summer season. Geographical expansion continues to proceed: the newly-incorporated subsidiary in the Peoples’ Republic of China opened for business on August 1, 2012. In addition, two more LINDT Chocolate Cafés were opened in Tokyo. Development of the subsidiary in South Africa is promising. A LINDT boutique with an attached “Chocolate Studio” was inaugurated there in April 2012. As of June 30, 2012, the operating profit (EBIT) stood at CHF 48.7 million, equivalent to an increase of 16% on the same period last year. The euro crisis and general economic background conditions seem likely to become still more challenging in the second half of the year with consumer sentiment further impaired in a number of countries. Despite these difficult conditions, Lindt & Sprüngli is adhering to its medium to long-term sales and profit targets, and for the year 2012 as a whole expects to achieve organic growth in local currency terms of between 6 and 8%, with an increase in the operating profit margin of 20 to 40 basis points. The continuous gain of new market shares on key markets and geographical expansion into growth markets will remain the topmost priority.