Chocoladefabriken Lindt & Sprüngli AG / Key word(s): Annual Results
07-March-2023 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement.
Press release financial year 2022 | Ad hoc announcement pursuant to Art. 53 LR
Kilchberg, March 7, 2023 - Lindt & Sprüngli Group’s business model once again proved to be very successful in the financial year 2022. Increasing consumer footfall in our own shops and in travel retail, as well as improvements in the supply chain in North America, were the drivers of increased profitability. This led to Group sales of CHF 4.97 billion and an EBIT margin of 15.0%. The global bestseller Lindor remains the most important product line.
Operating result Chocoladefabriken Lindt & Sprüngli AG generated sales of CHF 4.97 billion in the financial year 2022 (previous year: CHF 4.59 billion), which corresponds to strong organic growth of 10.8%. Currency effects, in particular the weakening of the Euro and the GBP, led to a slightly lower figure in Swiss Francs of 8.4%. Operating profit (EBIT) increased by 15.5% year on year to CHF 744.6 million (previous year: CHF 644.9 million). This results in an EBIT margin of 15.0% (previous year: 14.1%), while net income rose to CHF 569.7 million (previous year: CHF 490.5 million), resulting in a return on sales of 11.5%. Free cash flow amounts to CHF 526.1 million and the cash flow margin is 10.6%. The Group’s balance sheet remains on a very solid foundation. The equity ratio as at December 31, 2022 was 55.4% (previous year: 58.3%).
Europe: Positive development for gifting products The “Europe” segment generated sales of CHF 2.30 billion (previous year: CHF 2.33 billion), which corresponds to organic growth of 5.3%. In Europe, the core markets are still Germany, France, the UK, Italy, and Switzerland with positive growth on a strong basis. The markets in Eastern and Northern Europe were characterized by double-digit growth rates. Due to the war in Ukraine, Lindt & Sprüngli made the decision to close the business in Russia, that it has successfully established over the last few years. Adjusted for this effect, Europe would have achieved organic growth of 6.4%. With the removal of the pandemic restrictions, the demand for gifting products once again increased significantly and the tourism segment also made a distinct recovery.
North America: Growth trend gains momentum The “North America” segment generated sales of CHF 2.03 billion in the financial year under review (previous year: CHF 1.69 billion). This corresponds to a remarkable organic growth of 15.7%. Lindt & Sprüngli grew faster than the market as a whole in the world’s largest chocolate market – the USA – and significantly increased its market share. The bestseller Lindor and the recently launched milk chocolate line Gamme Bleue were particularly popular with consumers. For Ghirardelli, the highly acclaimed opening of the newly designed Chocolate Experience store at its historic location in San Francisco was a resounding success. All subsidiaries achieved double-digit growth rates in the past year, including Russell Stover, where stabilization in the supply chains enabled sales to be significantly improved.
Rest of the world: Global Travel Retail records triple-digit growth The “Rest of the World” segment generated sales of CHF 646 million (previous year: CHF 568 million), recording the strongest organic growth of 16.6%. The countries Brazil, China and Japan deserve special mention here, as they all recorded double-digit growth rates. With the recovery in air travel the Global Travel Retail business even recorded triple-digit growth. Brazil and Japan have the largest network of their own shops within the Lindt & Sprüngli Group, which we have continued to further expand from a strategic perspective. The Chinese market successfully continued its innovative distribution strategy on the online marketplaces.
Further increase in dividend Based on the positive results, Lindt & Sprüngli will continue its attractive dividend policy. The Board of Directors will propose a distribution to the 125th Ordinary Annual General Meeting of April 20, 2023, of CHF 1,300 (previous year: CHF 1,200) per registered share and CHF 130 (previous year: CHF 120) per participation certificate. For the first time since 2019, the Shareholders Meeting will once again be held in person at the traditional venue in the Kongresshaus Zurich.
Monique Bourquin nominated for the Board of Directors Antonio Bulgheroni has taken the decision to no longer stand as a candidate at the upcoming Annual General Meeting. “With his extensive expertise, Antonio Bulgheroni has made a significant contribution to the strategic direction and successful development of the Group for 27 years. We would like to thank him for his extraordinary commitment and wish him all the best for the future,” says Executive Chairman of the Board of Directors Ernst Tanner. The Board of Directors have proposed Monique Bourquin to the shareholders for election. She has many years of operational experience in the FMCG industry and is a member of the Board of Directors of leading Swiss companies and president of the association Promarca.
Sustainability: Lindt & Sprüngli Farming Program expanded Last year, Lindt & Sprüngli forged ahead with its sustainability efforts. Through the Lindt & Sprüngli Farming Program, cocoa beans are already procured on a fully traceable and externally verified basis. In addition, other cocoa countries of origin have been included in the Farming Program. The Group is working intensively to reduce its greenhouse gas emissions. Once the carbon footprint has been fully recorded, the Group’s detailed science-based targets (SBTs) will be published in 2023. Using this as a basis, Lindt & Sprüngli will develop its roadmap for reducing greenhouse gas emissions and develop measures to reduce them.
Outlook Lindt & Sprüngli is preparing for the fact that the current economic conditions – characterized by high inflation and volatility – will continue in most markets. Nevertheless, the Group remains committed to its long-term strategy. For the medium to long-term targets, we expect organic growth of 6 to 8% per annum, as well as an improvement in the operating margin of 20 to 40 basis points per annum. Lindt & Sprüngli remains committed to these goals for 2023.
Presentation of the 2022 financial year: Dr Adalbert Lechner, Group CEO, and Martin Hug, Group CFO of the Lindt & Sprüngli Group, will present the results at a media conference with webcast on Tuesday, March 7, 2023, at 10:00 a.m. CET. Please register here at least 15 minutes before the start to watch the presentation live: https://media.lindt-spruengli-financialyear.com
About Lindt & Sprüngli Lindt & Sprüngli has been enchanting the world with chocolate for over 175 years. The long-established Swiss company with its roots in Zurich is a global leader in the premium chocolate product sector. Lindt & Sprüngli produces quality chocolates today at its 12 own production sites in Europe and the USA. Its products are sold by 32 subsidiaries and branch offices in around 500 of its own stores as well as via a network of more than 100 independent distributors around the globe. With a workforce exceeding 14,000 employees, the Lindt & Sprüngli Group generated sales of CHF 4.97 billion in 2022.
This Footsie stock offers a big dividend yield at a low cost. But brewing problems in Germany may suggest that investors should steer clear. The post 8.7% dividend yield! Time to buy this FTSE 100 stock before the ISA deadline? appeared first on The Motley Fool UK.
These two FTSE stocks may be in sectors that have been somewhat battered recently, yet I see them as fundamentally strong for the long term. The post 8.9% and 6.2% dividend yields! 2 cheap FTSE 100 shares I might buy appeared first on The Motley Fool UK.
Volatility in bank shares has some fearing that a stock market meltdown is on the cards. Here's three things this Fool will do if that happens. The post 3 things this Fool will do in a stock market crash! appeared first on The Motley Fool UK.
Dr James Fox details some of his top stocks to buy after the market pushed downwards, largely led by banking stocks, which shed a year's worth of gains. The post Stocks to buy as the FTSE nosedives! appeared first on The Motley Fool UK.
Wondering where to invest Stocks and Shares ISA money right now? Here are a number of top-performing investment funds for investors to consider. The post 3 top funds for a Stocks and Shares ISA appeared first on The Motley Fool UK.
UK bank shares had another rough ride on Friday, with Barclays hit the hardest. After recent market turmoil, would I buy even more shares, or sit tight? The post After a wild week, is it safe to buy UK bank shares yet? appeared first on The Motley Fool UK.
Dr James Fox details two income stocks investors should buy after the recent sell-off which saw some companies lose 20% of their value in a couple of weeks. The post 2 income stocks to buy after the market correction! appeared first on The Motley Fool UK.
Christopher Ruane uses these elements of Warren Buffett's method when choosing shares for his own portfolio. Here's why he thinks they're helpful. The post 7 investing habits that made Warren Buffett a billionaire appeared first on The Motley Fool UK.
Earning a £12,000 annual passive income is more attainable than many think. Zaven Boyrazian demonstrates how, and highlights the risks involved. The post 1 possible investing route to earning £1,000 monthly passive income appeared first on The Motley Fool UK.
Dr James Fox details two beaten-down stocks he thinks investors should be piling into before the FTSE stages a recovery. So what are they? The post 2 stocks to buy for the FTSE recovery! appeared first on The Motley Fool UK.
(Bloomberg) -- Global financial markets are poised for another week of turmoil, as traders close out a dizzying month in which cascading worries about US and European lenders dominated sentiment and complicated central banks’ fight against inflation.Most Read from BloombergBond Traders Go All-In on US Recession Bets That Defy Fed ViewGreenland Solves the Daylight Saving Time DebateValley National, First Citizens Said to Bid on Silicon ValleyUS Mulls More Support for Banks While Giving First Repu
A loyalty app which counts Barclays and Lloyds Banking Group among its shareholders has secured a £9m funding lifeline. Sky News understands that existing investors in Loyalty Angels, which trades as Bink, have agreed to provide £7.5m in new capital. The additional funding will provide Bink with sufficient cash to operate until at least the first quarter of 2024 following a series of cost-cutting measures implemented late last year.
Dr James Fox details why he thinks Hargreaves Lansdown shares are significantly undervalued. The stock has suffered despite interest rate tailwinds. The post If I’d invested £500 in Hargreaves Lansdown shares 1 year ago, here’s what I’d have now! appeared first on The Motley Fool UK.
(Bloomberg) -- The administration of India Prime Minister Narendra Modi hasn’t intervened in the Adani Group’s tussle with a US short seller that caused a rout in the company’s shares, said Sanjeev Sanyal, an economic adviser to the premier. Most Read from BloombergBond Traders Go All-In on US Recession Bets That Defy Fed ViewGreenland Solves the Daylight Saving Time DebateValley National, First Citizens Said to Bid on Silicon ValleyUS Mulls More Support for Banks While Giving First Republic Tim
It's tough for investors right now. Inflation remains at levels not seen since the 1960s. War continues to rage in Europe, the banking sector has been rocked and businesses remain paralysed by fear over whatever the next economic shock will be.