Lindt & Spruengli AG is challenging Godiva as the Swiss company set a goal of becoming the world’s largest premium chocolate retailer by 2020, bolstering its direct sales to consumers.
Lindt plans to open 20 to 30 shops each year, the Kilchberg, Switzerland-based maker of Lindor balls said said in a statement Tuesday as it reported full-year profit growth in line with analysts’ estimates. The company also raised its dividend 10 per cent to 800 francs a share, beating the Bloomberg forecast for 750 francs.
Lindt, which has more than 300 shops, will need to accelerate its expansion plan to beat its larger rival, which runs more than 450 boutiques. Lindt said it will use its store network to communicate with consumers, seeking prime locations and offering some products they can’t find elsewhere. Lindt added 50 stores last year, including 16 in Brazil, and retail sales rose more than 20 per cent, faster than the company’s total sales growth.
The maker of chocolate Easter bunnies wrapped in golden foil confirmed its mid-to-long-term organic sales growth forecast of 6 per cent to 8 per cent.
Earnings before interest and tax rose 9.4 per cent to 518.8 million francs ($522 million). Analysts expected 519.6 million francs, according to the average estimate. Sales rose 7.1 per cent on an organic basis.
Lindt became the third-largest chocolate maker in the US when it bought Russell Stover for 1.5 billion francs in 2014. North American sales rose 7.9 per cent last year, slowing from 14 per cent growth in 2014 as Russell Stover eliminated unprofitable products.
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