Lindt & Sprüngli achieves robust growth in sales and profits

 

The increase was supported by mid-single-digit price increases in the first half of the year to offset higher cocoa prices, as well as solid volume/mix growth of +0.9%. The EBIT margin increased to 13.5% (previous year 12.2%), with an EBIT of CHF 292.3 m.

This improvement was mainly driven by efficiency gains and price increases, compensating for higher cocoa material costs. The Group is confident that it will reach the objectives announced for the full year 2024, with sales growth in the range of 6–8% and an EBIT margin increase expected at the upper end of the 20–40 basis points range.

All regional segments show positive growth. The Europe segment increased sales organically by a strong +9.3% to CHF 1.07 bn in the first half. Growth was most pronounced in France, the United Kingdom, and Central and Eastern Europe, with double-digit growth. Italy, Germany, and Switzerland continued to show solid growth.

The North America segment showed organic sales growth of +3.0% to CHF 794.6 m. Lindt & Sprüngli USA, Ghirardelli, and Lindt & Sprüngli Canada outperformed the market, gaining market share. The “Rest of the World” segment achieved strong organic sales growth of +10.0% to CHF 293.2 m. Notably, the subsidiaries in Japan and Brazil achieved double-digit growth rates in the first half of the year.

The Group’s direct-to-consumer channels, which include retail and online stores, have shown strong development, with double-digit growth compared to the previous year (+15.8%), driven mainly by a demand for gifting. Sales in the Group’s around 530 own stores grew both on a like-for-like basis and through the addition of new store locations. Personalization continues to be a key driver. Notable Easter success includes the personalized Gold Bunny, with name printed ribbon. The key franchise Lindor, the largest brand in the product portfolio, continues to drive growth in all regions. Additionally, the dark chocolate key franchise Excellence accelerated growth in the first six months.

While energy prices and supply security have stabilized, and prices for other raw materials and packaging have remained constant, the cost of cocoa continues to be a challenge, reaching record levels. The Group will partly mitigate the impact of rising cocoa prices through strict cost management, though further price increases will be needed. On the demand side, the global chocolate market continues to show its resilience with positive value sales development. However, with inflationary price effects, sales volumes in the global chocolate market have either stagnated or slightly declined depending on the product category and market. In these market conditions, Lindt & Sprüngli’s brands show strength and resilience, growing market share in all key markets.