Lindt & Spruengli raises guidance, unveils new buyback (updated)

Chocoladefabriken Lindt & Spruengli AG

26/07/2022 06:22

(Adds details and background)
    ZURICH, July 26 (Reuters) - Swiss chocolate maker Lindt &
Spruengli  LISN.S  on Tuesday raised its sales guidance and
unveiled a 1 billion Swiss franc  ($1.04 billion) share buyback
programme after first-half net profit jumped 36% to 138.4
million francs.
    It said it now expected 2022 organic sales growth of 8-10%
with an operating margin of around 15%. It had previous guided
for 6-8% growth this year, a target it reaffirmed for the medium
to long term.
    Growth in the global chocolate market has been sluggish of
late, but Lindt & Spruengli managed to outperform the market
because customers are willing to pay more for its upmarket
products and the novelties it launches regularly.
    The group's organic sales grew 12.3% - or 10.7% in Swiss
francs - in the half to 1.99 billion francs, helped by market
share gains in all regions, the maker of Lindor chocolate balls
said in a statement.
    The buyback programme for registered shares and
participation certificates will start on Aug. 2 and last until
the end of July 2024 at the latest. It said it intends to cancel
the shares it repurchases.
    Peer Barry Callebaut  BARN.S  last week posted a 7.9% rise
in sales volumes for the nine months to May, citing strong
demand across regions.  urn:newsml:reuters.com:*:nL8N2Z10OG
    
    ($1 = 0.9638 Swiss francs)

 (Reporting by Michael Shields and Silke Koltrowitz, Editing by
Miranda Murray)
 ((Michael.Shields@thomsonreuters.com; +41 41 528 3630; Reuters
Messaging: michael.shields.thomsonreuters.com@reuters.net))