Advertise with fastmoving.co.za
 
 

Swiss chocolate maker Lindt & Spruengli said it expected organic sales to grow 5-7 percent this year.
Swiss chocolate maker Lindt & Spruengli said it expected organic sales to grow 5-7 percent this year.

Lindt expects 5-7 percent growth this year

INTERNATIONAL NEWS

IOL - Mar 6th, 11:02

Swiss chocolate maker Lindt & Spruengli said it expected organic sales to grow 5-7 percent this year, in line with mid-term targets, as it works to improve the performance in its North American unit. 

Chocolate makers are grappling with saturated European and US markets and a trend towards healthier snacking, but Lindt is growing faster than peers as it taps new markets in Asia and Africa and expands its own retail network.

It is, however, taking more time to turn around its Russell Stover business it had bought to boost its position in the United States and had to trim its mid-term guidance to 5-7 percent organic sales growth in January when it released 2018 sales figures.

The maker of Lindor chocolate balls said it had made substantial investments in North America “to lay the foundation for profitable sales growth”, but did not say whether it expected improvements starting this year.

Net profit rose 7.6 percent to 487.1 million Swiss francs ($487 million) in 2018, in line with expectations in an Infront Data poll, the company known for its gold foil-wrapped Easter bunnies said in a statement.

It proposed to pay out a dividend of 1,000 Swiss francs per registered share, an increase of 7.5 percent over last year, and also in line with forecasts. It had already reported a 5.1 percent increase in organic sales in January.

Kepler Cheuvreux analyst Jon Cox said the group margin was slightly below consensus dragged down by a 240 basis point decline in North America. “Lindt is clearly still in the middle of repositioning Russell Stover,” he said.IOL 

Read more about: sales | lindt & spruengli | growth

Related News

Shoprite earnings take knock on non-SA operations
20/08/2019 - 10:39
Shoprite’s shares fell to their worst level in more than three years after Africa’s largest food retailer reported a 20% drop in earnings and said it saw no immediate prospects of its troublesome non-SA operations returning to profitability.

Product mix boosts revenue of Denny owner Libstar
13/08/2019 - 08:36
Consumer goods group Libstar said it managed solid volume growth for its core product offerings in the six months to end-June, but accounting changes will weigh somewhat on its interim headline earnings per share (Heps) growth.

Retail boost could steer SA away from a recession
12/08/2019 - 12:37
A rebound in economic growth in the second quarter of the year will likely see SA avert its second recession in two years.

SA's economic growth prospects keep diving
07/08/2019 - 08:39
SA’s economic growth prospects keep going from bad to worse.

Hong Kong's June retail sales slide due to mass protests - government data shows
05/08/2019 - 09:18
Retail sales, a key part of Hong Kong’s economy, felt a growing impact in June from mass protests, government data shows.