Lindt & Sprüngli delivers strong performance in sales, EBIT, and free cash flow
In 2024, Lindt & Sprüngli grew both in value and volume, gaining market share globally to establish the Group as one of the fastest-growing chocolate manufacturers. "The results we achieved in a challenging market environment demonstrate the dedication of our team – something we can be proud of," said Adalbert Lechner, Group CEO of Lindt & Sprüngli.
The Group grew organically by 7.8% to CHF 5.47 bn (previous year: CHF 5.20 bn). Sales growth in Swiss Francs was 5.1%. Currency effects impacted the result by - 2.7%, mainly due to the weaker US dollar and Euro. Operating profit (EBIT) increased by 8.7% year-on-year to CHF 884.2 m, with an EBIT margin of 16.2% (previous year: CHF 813.1 m, margin: 15.6%). Continued tight cost control, efficiency gains, process optimization, and price increases offsetting higher cocoa costs contributed to the increased profitability. This resulted in a net income of CHF 672.3 m (previous year: CHF 671.4 m) with a return on sales of 12.3%. Without the one-time tax impact in 2023, net income would have increased substantially. Free cash flow came in at CHF 635.3 m, representing a solid free cash flow margin of 11.6%. As at December 31, 2024, the equity ratio stood at 52.8% (previous year: 54.2%).
The region Europe achieved excellent results with CHF 2.59 bn (previous year: CHF 2.41 bn), growing organically by 9.5%. Lindt & Sprüngli achieved double-digit growth in many European markets, with notable results in the UK, Central Eastern Europe, France, and Benelux. Other core markets, such as Germany, Italy, and Switzerland, contributed to the results with solid mid-single-digit growth.
Business in North America gained momentum in the second half of 2024, despite a weak chocolate market with a declining volume and flat value. North America increased sales to CHF 2.15 bn (previous year: CHF 2.11 bn), an organic growth of 5.0%. The region Rest of the World achieved organic sales growth of 10.0% to CHF 0.72 bn (previous year: CHF 0.68 bn), with excellent development at double-digit growth rates in core markets like Brazil, Japan, and China.
Sales in own stores and e-shops developed strongly with an overall 16.7% growth, with retail stores gaining double-digit growth in all markets and an even stronger growth online through e-shops. Over the year, the Group expanded its retail network to 568 stores by the end of 2024 (previous year: 523 stores). The Global Travel Retail business, where Lindt products are sold in duty-free shops, grew by 9.3% in the reporting year, particularly in the APAC, MEIA, and LATAM regions.