Switzerland's Lindt & Sprüngli reported a slightly better than expected full-year operating profit, as it fares through historically high cocoa prices.
'Tight cost control, efficiency gains, process optimisation and price increases offsetting higher cocoa costs contributed to the increased profitability,' the chocolate maker said in a statement.
Cocoa trades at around £6,908 ($8,734.5) per metric tonne LCCc1 in London, and analysts have said the chocolate industry is in for a rough 2025 as companies are faced with unprecedented cost of the raw material, likely to prompt further price hikes in a teens percentage.
Lindt's earnings before interest and taxes (EBIT) were CHF 884 million ($987 million) in 2024, a beat to analysts' consensus of CHF 880 million compiled by LSEG.
The maker of chocolate Easter bunnies, which in January forecast sales growth of 7% to 9% for 2025 and predicted its prices would rise further this year, said it would propose a dividend of CHF 1,500 per share for the year, in line with the LSEG estimate.
Adalbert Lechner, group CEO of Lindt & Sprüngli, stated, "The results we achieved in a challenging market environment demonstrate the dedication of our team – something we can be proud of."
Regional Performance
In Europe, the company achieved organic growth of 9.5% with double-digit growth in many European markets with notable results in the UK, Central Eastern Europe, France, and Benelux.
Other core markets, such as Germany, Italy, and Switzerland, contributed to the results with solid mid-single-digit growth, the company added.
In North America, organic sales increased 5.0% year on year to CHF 2.15 billion, with the USA and Canada reporting solid single-digit growth and growth in market shares.
Ghirardelli also saw robust performance, growing high single digits and gaining market share, while Russell Stover faced a slight decline in sales in a challenging market.
News by Reuters, additional reporting by ESM.
