Lindt & Sprüngli Reports Strong Half-Year, Raises Full-Year Guidance
Lindt & Sprüngli (SWX: LISN), the renowned Swiss premium chocolate manufacturer, today announced strong financial results for the first half of 2025, leading to an upward revision of its full-year guidance. The Group achieved organic sales growth of 11.2%, with total sales reaching CHF 2.35 billion, an increase from CHF 2.16 billion in H1 2024.
This performance was delivered amidst a challenging market backdrop of historically high cocoa prices. The company implemented price increases averaging 15.8%, a strategy effectively absorbed due to low price elasticity, particularly in Europe, resulting in a moderate volume/mix decline of -4.6%. Core products like Lindor and Excellence continued their dynamic performance, complemented by strategic product innovations. Notably, the rapid, multi-market launch of the "Lindt Dubai Style Chocolate" across Switzerland, Australia, USA and Mexico, demonstrated Lindt's agility in responding to emerging consumer trends. Concurrently, the introduction of Lindor Vegan Truffles in Canada marked a deliberate move into niche, high-potential segments, addressing evolving dietary preferences.
From a profitability standpoint, EBIT reached CHF 259.2 million, translating to an 11.0% EBIT margin. Net income for the period was CHF 188.9 million. Free cash flow registered at CHF -79.7 million, primarily due to the higher valuation of inventories from elevated cocoa costs. The company's equity ratio strengthened to 55.6% as of June 30, 2025.
Geographically, Europe led with exceptional 17.7% organic sales growth, with all subsidiaries in the region recording double-digit increases. North America grew organically by 3.6%, below expectations due to weak consumer sentiment, though Lindt gained overall market share (Lindt holds a high single-digit share of the overall US market according to Linium Intelligence estimates). The "Rest of the World" segment achieved 7.8% organic growth, with double-digit increases in markets like Japan, Brazil, South Africa, and China. Lindt is also strategically expanding its geographical footprint into new markets, including Saudi Arabia, Chile, and India.
The Global Retail division posted substantial 22.1% organic growth, supported by an expanded network of 590 stores worldwide (up from 530 in H1 2024). This channel's strength, including new flagship stores like Piccadilly Circus in London, aligns with Lindt's robust DTC market positions in major chocolate markets including the USA, Switzerland, the United Kingdom, and Australia.
Lindt's premium standing was reaffirmed by its inaugural naming as the world’s most valuable chocolate brand in the 2025 Kantar BrandZ ranking, placing eighth in the global Food & Beverages category.
Based on these results, Lindt & Sprüngli has raised its organic sales growth guidance for the full financial year 2025 to 9–11% (previously 7–9%). The Group maintains its medium- to long-term organic sales growth target of 6–8% with an annual operating profit margin improvement of 20–40 basis points.
Foundations For Continued Growth
Lindt & Sprüngli's H1 2025 performance highlights a strategic playbook well-executed in a volatile environment, positioning it robustly for future growth.
Premiumization As A Core Strength: The successful implementation of 15.8% price increases with minimal volume erosion underscores Lindt's exceptional pricing power, driven by its premium brand equity and consumer loyalty. This strategy is critical for offsetting persistent high cocoa costs and maintaining profitability. Its recognition as the world's most valuable chocolate brand further validates this premium strategy, allowing sustained margin capture despite inflationary pressures.
Agile Innovation & Niche Penetration: Lindt's swift pivot to launch the "Dubai Style Chocolate" reflects significant market responsiveness and agility in capturing emerging consumer trends. This capacity for rapid innovation, alongside a proactive approach to niche, high-potential segments like vegan chocolate, demonstrates a forward-looking strategy (vegan accounts for a single-digit share in most markets including the USA, Switzerland, Australia to name a few).
Diversified Geographic Contribution: Europe's robust 17.7% organic growth solidifies its role as a stable, high-value profit anchor. While North America's 3.6% growth falls below expectations due to consumer sentiment, Lindt's high single-digit overall market share within a challenging environment demonstrates brand resilience and market acceptance. The strong 7.8% organic growth in the "Rest of the World" segment, bolstered by new market entries in Saudi Arabia, Chile, and India, provides essential diversification and access to high-potential emerging markets, mitigating reliance on established regions and securing future revenue streams.
Strategic DTC Channel Expansion: Lindt's Global Retail channel, with 22.1% growth and an expanded network of 590 stores, underscores the pivotal role of its Direct-to-Consumer (DTC) model. This robust DTC presence gives Lindt greater control over brand experience, fosters direct consumer engagement, and enables superior margin realization, a significant competitive advantage that will drive future brand loyalty and profitability.