Lindt & Sprüngli reported higher 2023 profit, as the Swiss chocolate maker managed to pass on increasing raw material costs to customers amid a slowdown in the global chocolate market.
The company's net income rose 17.9% to CHF 671.4 million (€697.22 million) for the full year ended December 31, slightly beating the CHF 670 million (€695.51 million) forecast by analysts at Zuercher Kantonalbank.
The manufacturer of Lindor balls and gold foil-wrapped Easter bunnies said it achieved an operating margin of 15.6% last year, up from 15% in 2022.
In January, Lindt & Sprüngli reported a 10.3% rise in 2023 organic sales, as the post-COVID recovery in travel generated demand for higher-value products such as pralines.
Performance By Segment
Lindt & Sprüngli's European business segment recorded sales of CHF 2.41 billion (€2.50 billion), marking a 9.1% organic increase. Several European markets, including Switzerland, Italy, the UK, and Eastern Europe, experienced double-digit growth, while Germany and France also witnessed 'solid growth', the company said.
The North American segment achieved sales of CHF 2.11 billion (€2.19 billion), reflecting an organic growth of 11.0%. Meanwhile, the Rest of the World segment saw sales climb to CHF 0.68 billion (€0.71 billion), with an organic growth rate of 12.9%, buoyed by robust sales in Australia, Japan, and Brazil.
Read More: Lindt & Sprüngli And Italian Artisans Close To Chocolate Truce
Future Outlook
The company proposed an annual dividend of CHF 1,400 (€1,456) per registered share, up from the CHF 1,300 (€1,352) in the previous year.
Lindt & Sprüngli confirmed its 2024 guidance for organic growth of 6% to 8%, as well as an improvement in the operating margin of 20-40 basis points.
'In an uncertain economic and political situation, Lindt & Sprüngli is very confident that the Group will be able to pursue its successful strategy and is convinced that the long-term trend towards premium products will continue,' it said.
Additional reporting by ESM
