Strong 2015 financial year results for Lindt & Sprüngli Group
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Posted: 8 March 2016 | Victoria White | No comments yet
The Lindt & Sprüngli Group achieved consolidated sales of CHF 3.65 billion, which equates to an increase of 13.5% in local currencies and 7.9% in Swiss francs…
The Lindt & Sprüngli Group has announced its annual results for the 2015 financial year.
The Lindt & Sprüngli Group achieved consolidated sales of CHF 3.65 billion, which equates to an increase of 13.5% in local currencies and 7.9% in Swiss francs. Overall, the Group achieved organic sales growth of 7.1%. The Group’s operating profit (EBIT) rose by 9.4% to CHF 518.8 million. Therefore the strategic growth and sales targets were met.
Lindt & Sprüngli managed to achieve this impressive result despite the persistently challenging market environment. During the past financial year 2015 the economic environment was once again extremely challenging. First and foremost, the Swiss National Bank’s decision to abandon the exchange-rate floor between the Euro and the Swiss franc had noticeable consequences for the Swiss economy. On top of that, a series of negative factors weighed on global consumer sentiment: record-high raw material prices (especially for cocoa beans), the recession in oil-exporting countries, the unsettling effects of terrorist threats and concerns about deflation and unemployment in the mature economies. A very hot summer followed by an extremely mild start to winter both had a negative impact on chocolate consumption. This led to sluggish demand in the overall chocolate market. Despite all this, the Lindt & Sprüngli Group performed well in all markets, and managed to increase its market shares. The Group says this positive trend was supported by all the major markets, as well as the constantly growing contribution from the Global Retail Division.
The Group was able to expand its share in all the strategically important markets and thereby strengthen its top position in the attractive premium chocolate segment. The Lindt & Sprüngli Group continues to grow at a faster pace than the overall chocolate market. The integration of Russell Stover into the Lindt & Sprüngli Group is progressing according to plan.
Lindt & Sprüngli Group plans to open 20-30 new Lindt shops every year
In terms of outlook, the Group confirms its guidance for the current financial year: a mid-to long-term organic growth target of 6-8 % and an increase in EBIT of 20-40 basis points. Lindt & Sprüngli will continue with the successful integration of Russell Stover into the Group.
In addition to the investments into the Lindt brand and high quality, Lindt & Sprüngli says it will also be investing in the expansion of its retail network, new technologies, expansion of production sites and in sustainability programs in the countries where we source our raw materials. Lindt & Sprüngli’s goal is to be the world’s leading retailer of premium chocolate by 2020. As part of this drive, Lindt & Sprüngli plans to open 20 – 30 new Lindt shops every year.