Swiss chocolate maker Lindt & Sprüngli on Tuesday raised its sales guidance and unveiled a 1 billion Swiss franc ($1.04 billion) share buyback programme after first-half net profit jumped 36% to 138.4 million francs.
It said it now expected 2022 organic sales growth of 8-10% with an operating margin of around 15%.
It had previous guided for 6-8% growth this year, a target it reaffirmed for the medium to long term.
Read More: Lindt & Sprüngli Raises Midterm Guidance After Full-Year Profit Beat
Global Chocolate Market
Growth in the global chocolate market has been sluggish of late, but Lindt & Sprüngli managed to outperform the market because customers are willing to pay more for its upmarket products and the novelties it launches regularly.
The group's organic sales grew 12.3% - or 10.7% in Swiss francs - in the half to 1.99 billion francs, helped by market share gains in all regions, the maker of Lindor chocolate balls said in a statement.
The buyback programme for registered shares and participation certificates will start on 2 August and last until the end of July 2024 at the latest. It said it intends to cancel the shares it repurchases.
Peer Barry Callebaut last week posted a 7.9% rise in sales volumes for the nine months to May, citing strong demand across regions.
Barry Callebaut expects a 'notable financial impact' in its fourth quarter from the shutdown of its Wieze factory as the world's biggest chocolate maker noted that strong demand boosted sales in the nine months to May.
Read More: Factory Shutdown To Hit Barry Callebaut After Nine-Month Sales Rise
News by Reuters, edited by Donna Ahern, Checkout. For more supply chain stories, click here. Click subscribe to sign up for the Checkout print edition.
