Investing.com – Shares of Lindt & Spruengli (SIX:) rose in early European trading on Tuesday after the chocolate maker raised its 2024 margin forecast.
In an ad hoc statement on Tuesday, the Swiss group said it now expects to post an operating profit margin of at least 16% in its 2024 financial year, at the top of its previous guidance range and up from 15.6% in the previous year.
Organic growth is also forecast to be between 7%-9% in 2025, after sales rose 7.8% to CHF 5.47 billion in 2024 thanks in part to solid returns in several European countries. The operating profit margin is also estimated to improve by 20-40 points.
After 2025, Lindt & Spruengli reiterated its mid- to long-term targets of organic sales growth of 6%-8% and an increase in operating income margin of 20-40 basis points per year.
The figures show that consumer demand for chocolate brands such as Lindor and Ghirardelli has been resilient despite recent price increases in response to a near-tripling of cocoa costs over the year. Cocoa prices rose roughly 180% last year after a 61% annual jump in 2023.
Lindt & Spruengli also noted that currency headwinds, particularly the weaker US dollar and euro, reduced organic sales in 2024 by 2.7%.
The company called 2024 “challenging”, noting that cocoa prices remained at “historic highs” until the end of the year. Prices will have to rise further in 2025 to compensate for the high cost of cocoa, Lindt & Spruengli says.
More details on the results for the full year 2024 are due to be released on March 4.
(Reuters contributed reporting.)
