"I’m proud of what our teams achieved in the first half of the year. We have shown resilience in a challenging market environment. Innovations like our Lindt Dubai Style Chocolate aren’t just new products, they’re a reflection of how we connect with our consumers and reinforce our premium positioning," said Adalbert Lechner, Group CEO of Lindt & Sprüngli in a press statement.
Global Retail Continues to Grow
The company revealed that global retail experienced strong growth of 22.1%, supported by lower price elasticity in retail stores. The store network reached 590 stores (H1 2024: 530) worldwide, with strong footfall in tourist hubs and high-end locations.
Noteworthy is the recent launch of Lindt’s flagship store in London's Piccadilly Circus, with Lindt brand ambassador Roger Federer cutting the ribbon.
Product Innovation and Expansion as Strategic Pillars
Lindt & Sprüngli stated that it continued to execute its long-term growth strategy in the first half of 2025, marked by geographic expansion, strong brand support, product innovation, and necessary operational investments.
New products remained a key growth driver, with the successful launch of the Lindt Dubai Style Chocolate targeting new and younger consumer groups, and driving brand awareness. The Group continues to expand its geographical footprint in high-potential markets such as Saudi Arabia, Chile, and India.
Regional Highlights
- Europe: Stellar organic growth of 17.7%, driven by all subsidiaries—including 20%+ growth in the Nordics, Benelux, CEE, France, and Austria.
- North America: Modest growth at 3.6%, weighed down by Russell Stover’s greater price sensitivity. Marginal currency effects further impacted results.
- Rest of World: Solid 7.8% organic growth, buoyed by double-digit gains in Japan, Brazil, South Africa, and China.
Profitability Under Pressure
EBIT came in at CHF 259.2 million, translating to an 11.0% margin—down from 13.5% in H1 2024, which included one‑off adjustments. Net income declined to CHF 188.9 million (versus CHF 218.0 million in H1 2024), while free cash flow turned negative at –CHF 79.7 million, largely due to higher inventory valuation amid cocoa cost inflation.
Outlook & Guidance
- Revised 2025 guidance: Organic growth now expected at 9–11% (previously 7–9%)
- Margin outlook: Management anticipates lifting the EBIT margin by 20–40 bp, likely near the lower end of that range.
- Medium-term goals: Maintain 6–8% organic growth annually and continue margin expansion of 20–40 bp per year beyond 2025.
Strategic Takeaways
- Pricing power holds strong Consumers largely accepted price increases (~15.8%) amid high cocoa costs—evidence of Lindt’s strong brand premium and pricing resilience.
- Margin squeeze but operational discipline While cocoa inflation and inventory build-up impaired EBIT margin and cash flow, tight cost controls and efficiencies helped mitigate the impact.
- Diversified growth engines Europe and Global Retail are outperforming, and innovation (e.g., Dubai Style Chocolate) is aiding expansion into new markets and demographics.
- Cautious optimism on margins Despite raising sales guidance, margin targets are adjusted conservatively—suggesting management sees persistent margin pressure into H2.
CocoaRadar Bottom Line
Lindt & Sprüngli delivered robust sales growth in H1 2025, leveraging strong pricing power and premium positioning amid rising cocoa costs. Regional performance was broad-based, led by Europe and retail expansion. While profitability and free cash flow were impacted, improved guidance reflects confidence in demand resilience. Innovation and brand strength remain key pillars as the company targets long-term, sustainable growth.
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