Lindt & Sprüngli (LISN) H2 2025 earnings summary

Executive summary

• Achieved 12.4% organic sales growth to CHF 5.92 billion, exceeding guidance, with all regions contributing and strong expansion into new markets and retail channels.

• EBIT margin improved by 20 basis points to 16.4% (CHF 971 million); EPS up 8.5% to CHF 3,164, and net income rose to CHF 727 million.

• Free cash flow margin at 7.5%, slightly below long-term target due to higher inventory values; equity ratio at 54.5%.

• Opened 53 new stores, now totaling 621 globally, and launched Dubai Style Chocolate, which contributed 2%-3% of 2025 sales and drove brand relevance.

• Proposed dividend increase to CHF 1,800 per share and announced a new CHF 1 billion share buyback program starting June 2026.

Financial highlights

• EBIT reached CHF 971 million (+9.8% YoY), with margin up 20bp to 16.4%; EBITDA up 7.6% to CHF 1,270.8 million (21.5% margin).

• EPS increased by 8.5% to CHF 3,164; net income margin stable at 12.3%.

• Free cash flow was CHF 446 million, margin at 7.5%, impacted by inventory valuation; five-year average at 10.3%.

• Equity ratio at 54.5%, net debt to EBITDA at 0.84, and market capitalization CHF 27.0bn.

• Dividend proposed at CHF 1,800, payout ratio close to 58%; new CHF 1 billion share buyback announced.

Outlook and guidance

• 2026 organic sales growth guidance lowered to 4%-6% due to weak consumer sentiment and geopolitical tensions; long-term target remains 6%-8% organic growth.

• EBIT margin improvement of 20-40 basis points expected, with stronger H2 volume growth.

• Cautious approach due to weak Christmas sales and ongoing global uncertainties.

• Continued focus on brand support, innovation, and global retail expansion.