Lindt & Sprüngli Achieves Strong Growth in First Half of 2024

Chocoladefabriken Lindt & Sprüngli AG has reported a robust growth in sales and profits for the first half of 2024, increasing organic sales by 7.0% to CHF 2.16 billion. This growth is attributed to price adjustments and volume/mix improvements. The company expects to achieve its full-year targets with sales growth in the range of 6-8% and an EBIT margin increase at the upper end of 20-40 basis points.

The EBIT margin grew to 13.5%, resulting in an EBIT of CHF 292.3 million. Efficiency gains and price increases offset higher cocoa costs. A legal resolution in North America contributed positively to other income. Net income totaled CHF 218.0 million. Free cash flow, however, decreased to CHF 70.4 million due to increased capital expenditure for capacity expansion.

All regional segments showed positive growth, with Europe's sales rising by 9.3% to CHF 1.07 billion, and North America's organic growth hitting 3.0% to CHF 794.6 million. The Rest of the World segment achieved a 10.0% organic growth, driven by strong performances in Japan and Brazil.

The company continues to manage costs amid high cocoa prices and is committed to sustainability goals, aiming for 100% sustainable cocoa sourcing by 2025. Lindt & Sprüngli has also announced a new CHF 500 million share buyback program starting in August 2024. The outlook for the remainder of the year remains positive, with expected sales growth between 6-8% and continued margin improvements.