Lindt & Sprüngli with double-digit organic sales growth and a further margin improvement

Chocoladefabriken Lindt & Sprüngli AG / Key word(s): Annual Results Lindt & Sprüngli with double-digit organic sales growth and a further margin improvement 05-March-2024 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. Ad Hoc announcement pursuant to article 53 LR | Media release financial year 2023

• Double-digit organic sales growth of +10.3% to CHF 5.20 billion 
• Operating profit (EBIT) margin increases from 15.0% to 15.6% to CHF 813.1 million
• Increase of net income by +17.9% to CHF 671.4 million (12.9% of sales); excluding one-time tax impact to CHF 601.7 million (11.6% of sales)
• Free cash flow of CHF 476.8 million (9.2% of sales)
• Dividend increases by CHF 100 to CHF 1,400 per registered share and by CHF 10 to CHF 140 per participation certificate 

Kilchberg, 5 March 2024 – Lindt & Sprüngli Group’s business model once again proved to be very successful in the financial year 2023, with double-digit organic sales growth for the third consecutive year. Despite a slowdown in the global chocolate market, the Group is able to report a moderate volume/mix growth. Most of the growth is attributable to price increases as a result of higher raw material prices and inflationary pressure on other cost items. This led to Group sales of CHF 5.20 billion and an EBIT margin of 15.6%. The global bestseller Lindor remains the most important product line. 

Operating result
Chocoladefabriken Lindt & Sprüngli AG achieved sales totaling CHF 5.20 billion (previous year: CHF 4.97 billion) in the fiscal year 2023, marking a robust organic growth of 10.3%. Currency effects, in particular the weakening of the US dollar and the Euro, led to a lower growth figure in Swiss Francs of 4.6%. Operating profit (EBIT) saw a significant rise of 9.2% year-on-year, reaching CHF 813.1 million (previous year: CHF 744.6 million). This results in an EBIT margin of 15.6%, (previous year:15.0%). Net income also showed a notable increase, climbing to CHF 671.4 million (previous year: CHF 569.7 million), resulting in a return on sales of 12.9% (previous year: 11.5%). This includes a one-time impact on taxes; excluding this one-time tax impact, the net income would have increased by +5.6% to CHF 601.7 million (11.6% of sales). Free cash flow stood at CHF 476.8 million, with a cash flow margin of 9.2%. The Group’s balance sheet remains solid. As of December 31, 2023, the equity ratio was 54.2% (previous year: 55.4%).