Lindt Delivers Steady Sales And Launches Share Buyback

By Reuters
Lindt Delivers Steady Sales And Launches Share Buyback

Lindt & Spruengli posted first-half organic sales of 2.16 billion Swiss francs on Tuesday, in line with expectations, as it announced a new share buyback programme.

Customers bore the brunt of historically high cocoa prices.

Price increases in the mid-single-digit percentage range contributed to the 7% sales growth in the first six months of the year, according to the Swiss chocolate maker.

Analysts polled by the London Stock Exchange Group were expecting sales of 2.1 billion francs.

Lindt confirmed its full-year outlook for organic sales growth of between 6% and 8%.

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The company added that it expects its operating margin improvement to be at the upper end of previous guidance for a 0.2 to 0.4 percentage point increase.

However, the maker of Lindor chocolate balls said it would need to hike prices further as cocoa prices have more than doubled this year due to limited crop supply.

Cocoa prices are now higher than those of many metals.

The group also said it would launch a new share buyback programme of up to 500 million francs from 2 August to be concluded in July 2026 at the latest.

Read More: Barry Callebaut Shares Slide As High Cocoa Prices Trigger Debt

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