Lindt & Sprüngli increases sales and profit

Currency effects, in particular the weakening of the Euro and the GBP, led to a slightly lower figure in Swiss Francs of 8.4%. According to the company, operating profit (EBIT) increased by 15.5% year on year to CHF 744.6 m (previous year: CHF 644.9 m). This results in an EBIT margin of 15.0% (previous year: 14.1%), while net income rose to CHF 569.7 m (previous year: CHF 490.5 m), resulting in a return on sales of 11.5%. Free cash flow amounts to CHF 526.1 m and the cash flow margin is 10.6%. The equity ratio as at December 31, 2022 was 55.4% (previous year: 58.3%).

The Europe segment generated sales of CHF 2.30 bn (previous year: CHF 2.33 bn), which corresponds to organic growth of 5.3%. In Europe, the core markets are still Germany, France, the UK, Italy, and Switzerland with positive growth on a strong basis. The markets in Eastern and Northern Europe were characterized by double-digit growth rates. Due to the war in Ukraine, Lindt & Sprüngli made the decision to close the business in Russia, that it has successfully established over the last few years. Adjusted for this effect, Europe would have achieved organic growth of 6.4%. With the removal of the pandemic restrictions, the demand for gifting products once again increased significantly and the tourism segment also made a distinct recovery.

The North America segment generated sales of CHF 2.03 bn in the financial year under review (previous year: CHF 1.69 bn). This corresponds to a remarkable organic growth of 15.7%. Lindt & Sprüngli grew faster than the market as a whole in the world’s largest chocolate market – the USA – and significantly increased its market share. The bestseller Lindor and the recently launched milk chocolate line Gamme Bleue were particularly popular with consumers. For Ghirardelli, the highly acclaimed opening of the newly designed Chocolate Experience store at its historic location in San Francisco was a resounding success. All subsidiaries achieved double-digit growth rates in the past year, including Russell Stover, where stabilization in the supply chains enabled sales to be significantly improved. 

The Rest of the World segment generated sales of CHF 646 m (previous year: CHF 568 m), recording the strongest organic growth of 16.6%. The countries Brazil, China, and Japan deserve special mention here, as they all recorded double-digit growth rates. With the recovery in air travel the Global Travel Retail business even recorded triple-digit growth. Brazil and Japan have the largest network of their own shops within the Lindt & Sprüngli Group. The Chinese market successfully continued its innovative distribution strategy on the online marketplaces.