Lindt & Sprüngli (LISN) H1 2025 earnings summary

Executive summary

• Achieved record half-year sales of CHF 2.4 billion, with 11.2% organic growth, surpassing guidance.

• EBIT margin reached 11.0%, in line with guidance, despite higher cocoa costs.

• Net income was CHF 189 million (8% margin), down from CHF 218 million year-over-year.

• Retail network expanded to 590 stores, with 22.1% growth in global retail sales and new flagship openings.

• Dubai-style chocolate launch drove brand awareness and contributed 1-2% of total sales.

Financial highlights

• Total sales reached CHF 2.35 billion in H1, up 9% in CHF and 11.2% organically year-over-year.

• EBIT was CHF 259 million; EBIT margin at 11.0%.

• Net income margin improved to 8.0% from 6.9% in the previous year.

• Free cash flow was negative CHF 80 million, impacted by higher cocoa prices and inventory value.

• Net debt increased to CHF 1.4 billion, mainly due to inventory build and share buyback.

Outlook and guidance

• Raised full-year 2025 organic sales growth guidance to 9-11%.

• EBIT margin increase expected at lower end of 20-40 basis points.

• Medium to long-term organic sales growth target remains 6-8% per year.

• Annual CapEx to remain around 6% of sales; tax rate expected at 22-24%.

• Anticipates accelerated growth in North America and Rest of World in H2; Europe to decelerate slightly.