Lindt: reassuring results, but cocoa prices weigh

(CercleFinance.com) - Lindt & Sprüngli reassured investors on Tuesday with better-than-expected 2023 results, although investors were still concerned about the fallout from the recent surge in cocoa prices.


This morning, the Swiss chocolate maker reported a 9% increase in EBIT to 813m CHF last year, compared with the consensus of 804m CHF.

Net profit rose by 17.9% to 671.4m CHF, enabling the company to increase its dividend from 100 CHF to 1400 CHF per ordinary share, and from 10 CHF to 140 CHF per preference share.

In January, Lindt announced that it would achieve organic sales growth of 10.3% in 2023, its third consecutive year of double-digit organic growth.

The manufacturer of Lindor chocolate balls - its best-selling product - has once again confirmed its target of 6% to 8% organic sales growth in 2024, accompanied by a 20bp to 40bp improvement in operating margin.

Despite this solid outlook, analysts say they fear the effect of soaring cocoa prices, due to difficult climatic conditions, particularly intense heat, in West Africa, which have had a negative impact on cocoa production.

At around noon, the stock was down over 1.5% on the Zurich Stock Exchange, while the index of European agri-food stocks was down 0.3%.


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