Swiss chocolatier Lindt & Sprüngli has raised its sales forecast for 2025 after “strong” growth in the first half of 2025.
The Lindor maker now projects its sales will rise by 9-11% on an organic basis this year, up from its previous forecast of 7–9%.
In a statement issued today (22 July), Lindt & Sprüngli said its positive outlook is underpinned by "continued consumer loyalty and the ongoing trend towards premiumisation".
Lindt & Sprüngli is forecasting an increase in EBIT margin at the "lower end of" its medium-term annual target of growth of 20 to 40 basis points for 2025.
The first half of the year saw Lindt & Sprüngli grow its organic sales growth by 11.2%, amounting to total sales of Sfr2.35bn ($2.94bn).
The increase was driven by all regions, the company said, with Europe leading the way with a "very strong" organic sales growth of 17.7%.
All European subsidiaries reported "double-digit growth", with the “strongest” performances observed in the Nordics, Benelux, Central Eastern Europe, France and Austria.
In North America, Lindt & Sprüngli's organic sales grew by 3.6% by the business said the result fell short of expectations as a result of “weak consumer sentiment”.
Conversely, the Rest of the World division saw sales rise 7.8%, with Japan, Brazil, South Africa, and China recording "double-digit growth".
EBIT fell 11.3% to Sfr259.2m. In the first half of 2024, Lindt & Sprüngli generated EBIT of Sfr292.3m, which included a one-off effect from a resolved legal dispute.
Net income declined 13.3%, settling at Sfr188.9m.
The company reported a negative free cash flow of Sfr79.7m in the first half of the year, compared with a positive Sfr70.4m in the corresponding period of 2024, influenced by the "higher valuation of inventories because of the higher cocoa costs".
In response to the escalating cocoa prices, Lindt & Sprüngli announced in March its intention to implement double-digit price increases in 2025, following a 6.3% hike initiated last year.
CEO Dr Adalbert Lechner, while presenting Lindt’s 2024 financial results on 4 March, refrained from specifying the exact figure for the impending cocoa-linked price increases but acknowledged that the rise was "significant".
