FDBusiness.com

Despite the persistently challenging market environment, Swiss chocolate confectionery manufacturer Lindt & Sprüngli Group continues its solid growth pattern with its annual results for 2015 meeting its strategic growth and sales targets. Lindt & Sprüngli achieved consolidated sales of SFr3.65 billion (€3.33 billion), which equates to an increase of 13.5% in local currencies and 7.9% in Swiss francs. Overall, the group achieved organic sales growth of 7.1% Group operating profit (EBIT) rose by 9.4% to SFr518.8 million and the operating margin rose to 14.2 %. Net income increased by 11.2% to SFr381.0 million.

The group performed well in all the major markets, as well as the constantly growing contribution from the Global Retail Division. The group was able to expand its share in all the strategically important markets and thereby strengthen its leadership position in the attractive premium chocolate segment. Lindt & Sprüngli continues to grow at a faster pace than the overall chocolate market. The integration of Russell Stover into the Lindt & Sprüngli is progressing according to plan

Organic growth in the Europe segment amounted to 5.4%. Lindt & Sprüngli UK reported strong double-digit growth, while the sales figures achieved by Germany and France, the group’s biggest European subsidiaries, were also much higher than the market average. Performance in the home market of Switzerland was strong as well, despite a decline in the Swiss chocolate market as a whole.

In North America, Lindt & Sprüngli concentrated its efforts on integrating Russell Stover. The integration is progressing according to plan. Despite the necessary process adjustments and restructuring, Lindt & Sprüngli was able to maintain momentum and increase its sales compared with the previous year, as well as expand its presence in North America.

The Rest of the World segment reported organic growth of 11.4 %. Subsidiaries in Australia, Japan and Russia made particularly good progress, recording double-digit sales growth. In Latin America, Lindt & Sprüngli is concentrating on the strategically important market of Brazil, which is also delivering double-digit growth.

Lindt & Sprüngli has confirmed its guidance for the current financial year – a mid-to long-term organic growth target of 6-8% and an increase in EBIT of 20-40 basis points. Lindt & Sprüngli will continue with the successful integration of Russell Stover into the group. Lindt & Sprüngli’s goal is to be the world’s leading retailer of premium chocolate by 2020. As part of this drive, Lindt & Sprüngli plans to open 20-30 new LINDT shops every year.