FDBusiness.com

Despite the challenging market environment, Swiss confectionery manufacturer Lindt & Sprüngli succeeded in achieving above average organic sales growth of +9.4% in the first half-year of 2015. Lindt & Sprüngli Group and Russell Stover, the traditional US company acquired last summer, achieved consolidated sales of SFr1.41 billion (Eur1.35 billion). This equates to an increase in Swiss francs of 17.4% compared to the previous year. Excluding Russell Stover, the group’s organic growth is above average, at +9.4%, reflecting significant gains in market share in all main strategic markets and segments.

The negative currency effect on group sales from the further strengthening of the Swiss franc amounts to -7.5%. The above-average sales trend is primarily due to volume growth, but was further boosted by innovative new product launches, the seasonal business and a constantly optimized product mix.

Key markets for chocolate such as Switzerland and Europe are largely saturated, with very little growth. Despite this extremely difficult market environment, however, Lindt & Sprüngli once again succeeded in gaining additional market share with above-average growth rates.

The strength of the Swiss franc and high prices for raw materials will continue to present major challenges. Nevertheless, Lindt & Sprüngli is maintaining its 6-8% target for medium to long-term annual organic growth in this financial year. Russell Stover’s integration into the group is the top priority for this year and this is being accomplished as rapidly as possible. Once this integration has been successfully completed, Lindt & Sprüngli will once again aim for its long-term earnings target: an increase in the EBIT margin of 20 to 40 basis points.