Lindt reports double-digit growth for its premium chocolate

The company's 2023 Full-Year Results reveal an increase in net income of +17.9% to CHF 671.4 million (12.9% of sales), excluding a one-time tax impact of CHF 601.7 million (11.6% of sales). Double-digit organic sales growth of +10.3% to CHF 5.20 billion ($5.89bn and an EBIT margin of 15.6% were also revealed.

Most of the growth is attributable to price increases, which result from higher raw material prices and inflationary pressure on other cost items. The global bestseller Lindor remains the most important product line.

Regions

In 2023, the ‘North American’ segment increased sales to CHF 2.11 billion (the previous year: CHF 2.03 billion), with an organic growth of 11.0%. Lindt Sprüngli is gradually expanding its presence in the USA, the world’s largest chocolate market. In the USA, the company's focus remains on the premium segment, which is served by the global brand Lindt and its local premium brands Ghirardelli and Russell Stover.

The ‘European’ segment, the region with the highest sales, posted sales of CHF 2.41 billion (previous year: CHF 2.30 billion). The region grew organically by 9.1%, with double-digit growth in many European markets, including Switzerland, Italy, the UK, and Eastern Europe. The Group also generated solid growth in Germany and France.

Sustainability

Lindt Sprüngli said it expanded its responsible sourcing activities in 2023, with the Group sourcing 72.3% of its cocoa, including beans, butter, powder, and chocolate mass, through its farming programme or other sustainability programmes. “By 2025, our target is to achieve 100%,” it said in its Results statement.

The programme aims to increase the income of farming households and to contribute to the conservation of biodiversity and natural ecosystems. Lindt said it is also designed to address and, if possible, prevent child labour in the cocoa supply chain.

The Board of Directors has also anchored the importance of sustainable business practices in the group management remuneration model. Its bonus is now linked to achieving selected sustainability goals.