Swiss branded chocolate producer Lindt & Sprüngli has today (Tuesday) reported first half net profit up from CHF3.9m to CHF9.9m (US$8.06m) and confirmed its revenue targets for the full year.
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While the steep rise in net profits still came in slightly below analysts’ forecasts of CHF10.4m, sales rose by 17% to CHF983.4m. The period under review benefited from a good sprinkling of holidays, including Mothering Sunday, Valentine’s Day and Easter, all significant to the confectionery industry.
The company said it was gaining market share in all its markets and segments, particularly in Europe, and was enjoying faster growth than the overall market. It pinpointed two key consumer trends that it was building into its strategic planning, namely an increasing preference for dark chocolate, on one hand, and the strong performance of low-priced private labels on the other, to which it is well placed to respond “thanks to its renowned positioning as the premium brand”.
Lindt said operating profit improved sharply from CHF5.7m to CHF15.5m, as the company forged ahead with its cost-cutting programme and filtered down higher raw cocoa prices to customers.
For the full year, Lindt said it was confident it could increase sales by 10% to 12%, despite the impact of the hot summer in Europe and the US.
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By GlobalData
