Swiss chocolatier Lindt & Sprüngli has raised its sales forecast for 2025 following robust growth in the first half of the year.
The makers of Lindor now project a sales increase of 9-11% on an organic basis for this year, up from a prior forecast of 7-9%. This adjustment signals strong market confidence.
In a recent statement issued on 22 July, Lindt & Sprüngli attributed its optimistic outlook to “continued consumer loyalty and the ongoing trend towards premiumisation” in the food and beverage packaging sector.
Moreover, Lindt & Sprüngli anticipates that its EBIT margin will increase at the “lower end” of its medium-term annual target of 20 to 40 basis points for 2025.
During the first half of the year, the company reported an impressive organic sales growth of 11.2%, totaling Sfr2.35bn ($2.94bn). This growth underscores Lindt’s position in the competitive food and beverage packaging landscape.
Notably, all regions contributed to this success, with Europe achieving a “very strong” organic sales growth of 17.7%. This is indicative of a favorable market environment.
Each European subsidiary recorded “double-digit growth”, particularly in the Nordics, Benelux, Central Eastern Europe, France, and Austria, highlighting their effective strategies in food and beverage packaging.
Conversely, in North America, Lindt & Sprüngli’s organic sales grew by 3.6%. However, this figure fell short of expectations due to “weak consumer sentiment,” emphasizing challenges in the market.
In contrast, the Rest of the World division saw sales rise by 7.8%, with Japan, Brazil, South Africa, and China experiencing “double-digit growth” in their respective markets.
However, EBIT fell by 11.3% to Sfr259.2m. In the same period in 2024, Lindt & Sprüngli generated EBIT of Sfr292.3m, boosted by a one-off legal settlement.
Net income also declined by 13.3%, concluding at Sfr188.9m. This decline points to challenges in maintaining profitability amid rising costs.
The company reported a negative free cash flow of Sfr79.7m in the first half, contrasting sharply with a positive Sfr70.4m in the same period in 2024. This shift is mainly attributed to “higher valuation of inventories because of the higher cocoa costs.”
In order to address escalating cocoa prices, Lindt & Sprüngli announced in March its strategy to implement double-digit price increases in 2025, following a 6.3% increase initiated last year.
CEO Dr. Adalbert Lechner, while discussing Lindt’s 2024 financial results on 4 March, acknowledged the impending cocoa-related price increases as “significant,” but refrained from specifying the exact figures.