Lindt & Sprüngli (LISN) H2 2024 earnings summary

Executive summary

• Achieved 7.8% organic sales growth to CHF 5.47 billion, at the high end of guidance, with strong performance across all regions despite record cocoa prices and challenging market conditions.

• EBIT increased 8.7% to CHF 884 million, with margin rising to 16.2%, up 60 basis points year-over-year.

• Free cash flow rose 33% to CHF 635 million, supporting a 7.1% dividend increase and a margin of 11.6%.

• Outperformed the global chocolate market in both volume and value, gaining market share in all key regions and establishing a leading growth position.

• Significant sustainability progress, with 84% of cocoa and over 82% of key raw materials responsibly sourced.

Financial highlights

• Revenue reached CHF 5.47 billion, up 5.1% in Swiss francs, with organic growth of 7.8% and a negative currency impact of 2.7%.

• EBITDA rose to CHF 1,181.5 million (21.6% of sales), above CHF 1 billion for the third consecutive year.

• Earnings per share rose to CHF 2.917, up over 40% since 2021, and increased 12.7% year-over-year excluding one-off tax benefits.

• Net debt improved to CHF 882 million, with a net debt/EBITDA ratio of 0.75.

• Dividend per share increased for the 30th consecutive year to CHF 1,500, with a payout ratio of about 52%.

Outlook and guidance

• 2025 guidance raised to 7%-9% organic sales growth and 20-40 basis points EBIT margin improvement.

• Double-digit price increases planned for 2025 to offset higher cocoa costs.

• Mid- to long-term guidance confirmed at 6%-8% sales growth and 20-40 basis points EBIT margin expansion per year.

• Free cash flow expected to average 10% mid-term, with annual fluctuations.