Lindt expects strong 2005 results

By Staff Writer

- Last updated on GMT

Lindt today announced its 2005 sales had increased by 12.6 per cent
as a result of growth across the group.

Last year's sales were up by CHF 250 million (€161m) on 2004, with organic growth of 11.4 per cent to CHF 2.247 billion (€1.450bn).

The company reports that products and seasonal gift collections for Christmas and Easter, as well as paralines, experienced "substantial gains in market share in various countries".

A positive response to the Christmas range allowed the confectioner to further increase its marketing investments towards the end of the year, and this is expected to reflect in an increased market share.

Management also expects Lindt & Sprungli to have cut costs.

Lindt's statement drew on the importance of the company's performance in the context of a 'sluggish' chocolate market with aggressive competition.

The company will reveal its full 2005 figures on 14 March in Kilchberg, Switzerland.

The full year growth was indicated in the company's first-half results. First half net-income was positive for the first time in the company's history.

Operating profit rose to CHF 7 million (€4.5m), with an increase in sales of 8.9 per cent.

Sales reached CHF 847.2 million (€547m) representing a growth of 10.4 per cent when expressed in local currency.

This was particularly positive for the company as typically less than 40 per cent of its annual sales come in the first half but costs remain the same.

This is due to the seasonal nature of the premium chocolate business.

In recent years Lindt has been able to increase its sales thanks to the emergent trend in premium chocolate products, a segment many consider Lindt as responsible for bring into the mainstream market.

Lindt traces its history back to 1845 but today is a world leader in premium chocolate with manufacturing sites in Switzerland, Germany, France, Italy, US and Austria.

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