Lindt & Sprüngli (LISN) H1 2024 earnings summary

Executive summary

• Achieved 7.0% organic sales growth in H1 2024 to CHF 2.16 billion, with all regions gaining market share despite currency headwinds and sharply rising cocoa costs.

• EBIT reached CHF 292.3 million, with a record first-half EBIT margin of 13.5%, up from 12.2% in 2023, reflecting operational efficiency and price increases.

• Net income was CHF 218 million (10.1% margin), supported by a positive one-time legal settlement in North America.

• Free cash flow was CHF 70 million, down due to higher working capital and CapEx.

• Completed CHF 1 billion share buyback; new CHF 500 million buyback to start August 2024.

Financial highlights

• Total sales reached CHF 2.16 billion, up 3.5% in CHF; organic sales growth was 7.0%.

• EBIT margin improved by 130 basis points year-over-year to 13.5%.

• Net income rose to CHF 218 million, with a margin of 10.1%.

• Free cash flow decreased to CHF 70 million, mainly due to increased net working capital and CapEx.

• Net debt rose to CHF 1.28 billion, reflecting the share buyback and lease liabilities.

Outlook and guidance

• Organic sales growth for 2024 expected at 6%-8%; EBIT margin to deliver towards the upper end of a 20-40 basis point increase.

• CapEx planned at 7% of sales in 2024, then around 6% in subsequent years.

• Confident in achieving 6%-8% organic sales growth and 20-40 basis point EBIT margin expansion in 2025 and beyond.

• Tax rate expected at 23%-25% medium term.