Lindt & Sprüngli (LISN) H2 2025 (Media) earnings summary

Executive summary

• Achieved record organic sales growth of 12.4% to CHF 5.92 billion, the strongest in company history, with all regions contributing despite challenging market conditions and significant cocoa price volatility.

• EBIT rose 9.8% to CHF 971 million, with margin improving to 16.4%; net income increased 8.1% to CHF 726.7 million and EPS up 8.5%.

• Free cash flow was CHF 446.3 million (7.5% margin), slightly lower due to higher inventory values, but financial position and equity ratio remain strong at 54.5%.

• Significant price increases implemented to offset raw material cost inflation, especially cocoa.

• Continued global expansion, opening 53 new retail stores, launching major product innovations, and expanding into new markets such as Chile and Saudi Arabia.

Financial highlights

• Organic sales growth of 12.4% exceeded guidance (9%-11%), with sales up 8.2% in CHF terms, impacted by a -3.9% currency effect.

• EBIT margin rose to 16.4%, with EBIT at CHF 971 million.

• EPS reached a new record, up 8.5% year-over-year; net income increased by 8.1% to CHF 726.7 million.

• Free cash flow at 7.5%, impacted by CHF 320 million higher inventory value due to cocoa prices; margin declined from 11.6%.

• EBITDA up 7.6% to CHF 1,270.8 million; tax rate stable at 21.3%.

Outlook and guidance

• 2026 organic sales growth outlook lowered to 4%-6% due to price elasticity, weak consumer sentiment, and geopolitical uncertainties.

• EBIT margin improvement of 20-40 basis points targeted per year.

• Medium- to long-term organic sales growth guidance of 6%-8% reaffirmed for 2027 onwards.

• Expect negative volume mix in H1 2026, with flat to positive volume mix in H2.