(Finance) – Lindt & Sprunglia Swiss multinational specialized in the production of confectionery and chocolate products, has created a sales of 5.20 billion francs in 2023, marking organic growth of 10.3%. Currency effects, in particular the weakening of the US dollar and the euro, led to lower Swiss franc growth of 4.6%. L’EBIT recorded an increase of 9.2 percent to 813.1 million francs, which translates into an EBIT margin of 15.6 percent (previous year: 15.0 percent). L’Net income rose to 671.4 million francs (previous year: 569.7 million francs).
The “European” segment, the region with the highest turnover, recorded sales of 2.41 billion francs (previous year: 2.30 billion francs). The region grew organically by 9.1%, with double-digit growth in many European markets, including Switzerland, Italy, the United Kingdom and Eastern Europe.
The board will propose to the ordinary general meeting on 18 April 2024 a distribution of CHF 1,400 (previous year: CHF 1,300) per registered share and CHF 140 (previous year: CHF 130) per participation certificate. A program was launched in 2022 share buyback names and participation certificates for 1 billion francs. Registered shares and participation certificates worth CHF 0.85 billion were repurchased by 31 December 2023.
Despite the hedging strategy and higher inventories, the increase in cocoa prices (2023: +62%, and currently in 2024 above 40%) will require further price increases in 2024 and 2025, assuming cocoa prices remain at current levels. For 2024, Lindt & Sprungli confirms its strategic objective of organic growth of 6 to 8 percent and improvement of the operating margin by 20 to 40 basis points, in line with the medium to long-term target range.