Lindt confirms 2019 outlook after business improves in the U.S. (updated)

Chocoladefabriken Lindt & Spruengli AG

23/07/2019 06:30

(Adds detail, background.)
    ZURICH, July 23 (Reuters) - Swiss chocolate maker Lindt &
Spruengli  LISP.S  on Tuesday confirmed it expects organic sales
growth of 5-7% in 2019 after an improving situation in the
United States supported profit and sales growth in the first
half of 2019. 
    Chocolate makers have been facing sluggish demand in
saturated western markets, but Lindt's focus on faster-growing
premium products, its own branded store network and a push into
new markets has allowed it to buck that trend.
    "The situation in the U.S., the world’s largest chocolate
market, improved and the trading environment recovered slightly
after several difficult years of restructuring," said the
company based in Kilchberg, on the shores of Lake Zurich.
    The Russell Stover business Lindt bought in 2014 achieved a
sales plus for the first time in years and the group's U.S. unit
overall reported "a sound results and market share gains
following challenging previous periods", the maker of Lindor
chocolate balls and gold foil-wrapped Easter bunnies said in a
statement. 
    Group net profit rose 2.4% to 88.1 million Swiss francs
($89.54 million), while organic sales increased by 6.2% to 1.76
billion francs, Lindt said. 
    The group confirmed it expected full-year sales growth this
year to be within its target range of 5-7% and an operating
margin improvement of 20-40 basis points.
    ($1 = 0.9839 Swiss francs)

 (Reporting by Silke Koltrowitz
Editing by Thomas Seythal)
 ((silke.koltrowitz@thomsonreuters.com; +41 58 306 7454; Reuters
Messaging: silke.koltrowitz.thomsonreuters.com@reuters.net))