Lindt & Spruengli cuts sales outlook as North America weighs (updated)

Chocoladefabriken Lindt & Spruengli AG

25/07/2017 06:28

(Adds details and background) 
    ZURICH, July 25 (Reuters) - Swiss chocolate maker Lindt & 
Spruengli  LISP.S   LISN.  forecast revenue growth would slow 
this year and reported first-half net profit rose slightly less 
than the market had expected, hit by sluggish chocolate demand 
in the United States. 
    "Due to current developments in North America, it is 
anticipated that revenue growth for the full year will be 
slightly lower than in the previous year, combined with an 
increase of the operating profit margin. However, the group is 
still confident that its growth will considerably exceed the 
industry average," it said in a statement on Tuesday. 
    It had previously expected sales growth in 2017 to be 
broadly in line with the 6.0 percent progression seen in 2016. 
    Net profit at the maker of Lindor chocolate balls and gold 
foil-wrapped Easter bunnies rose 5.7 percent to 76.3 million 
Swiss francs ($80.6 million) on sales up 3.1 percent to 1.549 
billion francs, corresponding to organic growth of 3.6 percent.  
    Analysts polled by Reuters had on average expected net 
profit to rise to 77.3 million francs on sales up 6 percent at 
1.59 billion.  urn:newsml:reuters.com:*:nL5N1KF1QE 
    First-half sales lagged the group's mid-term target of 6-8 
percent organic growth. Excluding its Russell Stover division, 
organic growth was 6.6 percent.  
    The first half is traditionally weaker at the chocolate 
maker, which said sales growth should accelerate in the second 
half. Organic sales in Europe gained 6 percent in the first six 
months, while North American sales fell 3 percent.   
    Lindt acquired U.S. chocolate maker Russell Stover in 2014 
and adjusted the brand's product portfolio, which has weighed on 
U.S. sales. 
    "The strategic realignment of Russell Stover is making 
progress, but will take more time than originally anticipated," 
the company said on Tuesday. 
    ($1 = 0.9466 Swiss francs) 
 
 (Reporting by Michael Shields; Editing by John Revill) 
 ((Michael.Shields@thomsonreuters.com; +41 58 306 7461; Reuters 
Messaging: michael.shields.thomsonreuters.com@reuters.net)) 
 
Keywords: LINDT & SPRUENGL RESULTS/