Lindt & Sprüngli, established in Zurich in 1845, is a global leader in premium chocolate. With 12 production sites across Europe and the USA, and approximately 15,000 employees, the company reported CHF 5.47 billion in sales for 2024. Renowned for brands like Lindor, Excellence, and Gold Bunny, Lindt operates over 560 stores and distributes through more than 100 independent partners worldwide.
📊 Investment Highlights
- Robust Financial Performance: In 2024, Lindt achieved 7.8% organic sales growth to CHF 5.47 billion, with EBIT rising 8.7% to CHF 884.2 million and a margin of 16.2%. Net income reached CHF 672.3 million, and free cash flow increased by 33.2% to CHF 635.3 million.
- Strategic Pricing Power: Despite a 180% surge in cocoa prices, Lindt maintained volume growth and market share, demonstrating strong pricing power.
- Sustainable Growth Initiatives: The company sources over 84% of its cocoa responsibly and aims for net-zero emissions by 2050.
- Shareholder Value: Lindt has proposed a 7.1% dividend increase to CHF 1,500 per registered share and CHF 150 per participation certificate.
⚠️ Key Risks
- Commodity Price Volatility: Fluctuations in cocoa and other raw material prices could impact margins.
- Market Competition: Intense competition in the premium chocolate sector may affect market share.
- Economic Sensitivity: Economic downturns could reduce consumer spending on luxury goods.
✅ Conclusion
Lindt & Sprüngli offers a compelling investment opportunity with its strong financial performance, strategic pricing power, commitment to sustainability, and consistent shareholder value. While mindful of potential risks, the company’s robust market position and growth initiatives suggest a positive outlook.