Chocolate maker Lindt confirms FY outlook as N.America growth improves (updated)

Chocoladefabriken Lindt & Spruengli AG

24/07/2018 06:50

(Adds detail on growth, background)
    ZURICH, July 24 (Reuters) - Swiss chocolate maker Lindt &
Spruengli  LISP.S  said it was on track to achieve its growth
target this year after organic growth accelerated in the first
half, helped by an improvement in the difficult North American
market.
    However, challenges for the sector remain as chocolate
consumption has been hit by a trend towards healthier snacking
and changing shopping habits as consumers buy more online where
they are less tempted to drop a chocolate bar in their shopping
cart.
    Net profit at the maker of Lindor chocolate balls rose 13
percent to 86 million Swiss francs ($86.59 million), just ahead
of a forecast for 84.3 million in a Reuters poll.  urn:newsml:reuters.com:*:nL8N1UF58Z
    Organic sales growth accelerated to 5.1 percent in the first
half, from 3.7 percent in 2017, helped by an improvement in the
important U.S. market, where the acquisition of Russell Stover
had weighed on growth.
    Organic growth in North America improved to 4.0 percent,
after a negative development in 2017. Lindt said that Russell
Stover, acquired in 2014, managed to stabilise its sales, with
"only a modest dip in the first half".
    Lindt confirmed it wanted to grow around 5 percent
organically this year and also reiterated its target for 6-8
percent growth over the medium to long term.
 ($1 = 0.9932 Swiss francs)

 (Reporting by Silke Koltrowitz; Editing by Gopakumar Warrier)
 ((zurich.newsroom@thomsonreuters.com; +41 58 306 7336;))