FDBusiness.com

Swiss chocolate confectionery manufacturer Lindt & Sprungli has reported a 1.9% increase in net income to SFr246.5 million on group sales down a 3.5% to SFr2.49 billion for 2011 as adverse exchange rates impacted. However, on an organic basis, Lindt & Sprungli achieved sales growth of 6% to meet its strategic growth target, and improved its EBIT margin by 60 basis points to 13.2% to exceed its objective of improving annual earnings by 20 to 40 bps.

In flat to slightly declining chocolate markets, all the group’s subsidiary companies, with the exception of Australia, grew faster than their markets and consequently gained market shares. Indeed, Lindt & Sprungli outstripped the average organic growth of the group in its most important and biggest markets with Lindt and Ghirardelli in the USA and Lindt in Germanyand France. The strong franc and increasingly widespread economic weakness affected in particular exports from Switzerland and the Travel Retail business.

Despite the continuingly difficult and challenging trading environment, Lindt & Sprungli is maintaining its long-term targets which provide for annual organic growth of 6 to 8% with an increase of the EBIT margin by 20 to 40 basis points each year.