Lindt & Sprüngli reports key annual growth, including major US market gains
Lindt Goldhase Animalprint Leo-Tiger. (PPR/Lindt & Spruengli)
Premium chocolate group Lindt & Sprüngli has delivered its key annual results, posting sales of CHF 4.97 billion, up 8.4% year on year, driven by positive results in its travel retail, and expanded US supply chains, reports Neill Barston.
As the company noted, its core Lindor line continues to be instrumental in its improved results and profitability, with operating profit (EBIT) increasing by a total of 15.5% year on year to CHF 744.6 million (previous year: CHF 644.9 million).
Notably, net incomes were also up, at CHF 569 million, (increasing 16.1%) for the period, which resulted in the company’s board recommending its scheduled share dividends.
In terms of regions, the company confirmed that its European segment generated sales of CHF 2.30 billion (previous year: CHF 2.33 billion), 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.
Significantly, its markets in Eastern and Northern Europe were characterised by double-digit growth rates, though as it acknowledged, the war in Ukraine prompted it to close business interests in Russia, which it had successfully built up in recent 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.
As the company revealed, its growth within North America has also been a particularly encouraging factor, yielding sales of CHF 2.03 billion in the financial year under review (previous year: CHF 1.69 billion). 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 stabilisation in the supply chains enabled sales to be significantly improved.
In addition, the “Rest of the World” segment generated sales of CHF 646 million (previous year: CHF 568 million), 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.