Lindt & Spruengli lifted 2024 margin estimates and forecast further sales growth for 2025 on Tuesday after reporting 7.8% organic growth for the last year in a sign that price hikes have not deterred shoppers from splurging on chocolates.
The Swiss chocolate maker – which has been hiking its selling prices to pass record-high cocoa costs onto customers – said it expected to raise them further in 2025.
Vontobel analyst Jean Phillipe Bertschy attributed the chocolatier’s market gains to its “very robust sales growth,” adding that this highlighted Lindt’s pricing power.
Cocoa prices have nearly tripled in 2024, and as a result, analysts are expecting the chocolate market to dace an unprecedented cost headwind this year.
Cocoa prices rose by almost 180% last year, a second successive yearly increase after 61% growth in 2023.
Bertschy said, “We believe that Lindt is very well positioned to navigate through 2025, which will be a very challenging year for the chocolate industry.”
The maker of Lindor chocolate balls said its sales were 5.47 billion Swiss francs in 2024, broadly in line with market expectations.
London Stock Exchange Group’s IBES data showed an average analysts’ forecast of 5.49 billion francs while AWP consensus stood at 5.46 billion francs.
The company expects its annual operating profit margin to be at least 16.0% – the top of its earlier forecast range.
For 2025, it sees organic sales growth of between 7% and 9% and a further improvement of 20-40 basis points in the operating profit margin.
JP Morgan analysts said in a research note, “Overall, the 2024 delivery and 2025 outlook are likely to reassure and help the shares today.”
Lindt’s shares rose 2.3% in early trading.
It will report full annual results on 4 March 2025.
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