Lindt & Spruengli rose to the highest in more than two decades in Zurich trading after the world’s biggest maker of premium chocolate posted first-half profit that beat analysts’ estimates.
The stock gained as much as 1.6 per cent to 67,500 Swiss francs, extending its advance this year to 18 per cent.
Net income climbed 16 per cent to 65 million francs, Kilchberg, Switzerland-based Lindt said in a statement Tuesday. That compares with the 60.2 million francs analysts had estimated in a Bloomberg News survey. Earnings before interest and taxes increased 18 per cent to 90.6 million francs.
“The profitability improvement is stunning,” said Jean- Philippe Bertschy, an analyst at Bank Vontobel.
Last year’s acquisition of Russell Stover Candies, the largest U.S. maker of boxed chocolate, will boost the Swiss company’s revenue from North America beyond $1.5 billion in 2015, Lindt has said. Group sales in the first half were 1.41 billion Swiss francs ($1.44 billion), rising 17 per cent after the purchase gave it access to more U.S. consumers.
The maker of Lindor chocolate balls reiterated its medium- to long-term sales growth forecast of six per cent to eight per cent in local currencies.
News by Bloomberg, edited by ESM
