Swiss premium chocolatier Lindt & Sprüngli (SWX: LISN) announced strong financial results for the first half of 2025, prompting an upward revision of its full-year guidance. Organic sales grew 11.2%, with total sales reaching CHF 2.35 billion, up from CHF 2.16 billion in H1 2024.
This performance came despite historically high cocoa prices. The company implemented average price increases of 15.8%, successfully absorbed thanks to low price elasticity, particularly in Europe, resulting in only a moderate volume/mix decline of -4.6%. Core products such as Lindor and Excellence delivered strong momentum, supported by strategic innovations while rapid, multi-market launches of innovations such as Lindt Dubai Style Chocolate across Switzerland, Australia, the USA, and Mexico showcased agility in capturing emerging consumer trends. Additionally, the introduction of Lindor Vegan Truffles in Canada marked a deliberate entry into niche, high-potential segments to meet evolving dietary preferences.
From a profitability perspective, EBIT reached CHF 259.2 million, representing an 11.0% margin. Net income totaled CHF 188.9 million. Free cash flow stood at CHF -79.7 million, primarily reflecting higher inventory valuations driven by elevated cocoa costs. The equity ratio strengthened to 55.6% as of June 30, 2025.
Regional Performance
Europe led with exceptional 17.7% organic growth, with all subsidiaries reporting double-digit gains. North America grew organically by 3.6%, below expectations due to weak consumer sentiment, though Lindt gained overall market share (currently a high single-digit share of the U.S. market, according to Linium Intelligence estimates). The Rest of the World segment posted 7.8% organic growth, with double-digit gains in Japan, Brazil, South Africa, and China. Expansion into new markets—including Saudi Arabia, Chile, and India—further underscores Lindt’s strategic push for geographic diversification.
Retail And Brand Positioning
The Global Retail division achieved 22.1% organic growth, supported by an expanded network of 590 stores worldwide (up from 530 in H1 2024). This channel’s strength, highlighted by flagship openings such as Piccadilly Circus in London, reinforces Lindt’s robust DTC positioning across major chocolate markets, including the USA, Switzerland, the UK, and Australia.
Lindt’s premium status was reaffirmed by its first-ever designation 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 full-year 2025 organic sales growth guidance to 9–11% (previously 7–9%). The company continues to target medium- to long-term organic sales growth of 6–8%, alongside annual operating margin improvements of 20–40 basis points.
Foundations For Continued Growth
Premiumization as a core strength
The successful implementation of 15.8% price increases with minimal volume erosion underscores Lindt’s strong pricing power, supported by premium brand equity and consumer loyalty. This strategy is key to offsetting persistently high cocoa costs and sustaining profitability. Recognition as the world’s most valuable chocolate brand further validates this premium positioning, enabling continued margin capture despite inflationary pressures.
Agile innovation & niche penetration
The swift launch of Dubai Style Chocolate illustrates Lindt’s responsiveness to emerging trends. Combined with targeted moves into high-potential niches like vegan chocolate (currently a single-digit share in most key markets such as the USA, Switzerland, and Australia), this approach highlights a forward-looking innovation strategy.
Diversified geographic contribution
Europe’s 17.7% organic growth solidifies its role as a key profit driver. While North America’s 3.6% growth lagged expectations due to weaker consumer sentiment, Lindt’s high single-digit U.S. market share demonstrates resilience. Meanwhile, 7.8% growth in the Rest of the World segment—fueled by new entries in Saudi Arabia, Chile, and India—enhances diversification and unlocks future revenue streams.
Strategic DTC channel expansion
The Global Retail channel, with 22.1% growth and 590 stores, underscores the strategic role of Lindt’s DTC model. Direct consumer engagement, greater control over brand experience, and superior margin realization give Lindt a significant competitive edge—driving loyalty and long-term profitability.