Lindt expects 5-7 pct growth this year as U.S. troubles persist (updated)

Chocoladefabriken Lindt & Spruengli AG

05/03/2019 06:45

(Adds analyst quote, detail, background.)
    ZURICH, March 5 (Reuters) - Swiss chocolate maker Lindt &
Spruengli  LISN.S   LISP.S  said on Tuesday it expected organic
sales to grow 5-7 percent this year, in line with mid-term
targets, as it works to improve the performance in its North
American unit.
    Chocolate makers are grappling with saturated European and
U.S. markets and a trend towards healthier snacking, but Lindt
is growing faster than peers as it taps new markets in Asia and
Africa and expands its own retail network.
    It is, however, taking more time to turn around its Russell
Stover business it had bought to boost its position in the
United States, and had to trim its mid-term guidance to 5-7
percent organic sales growth in January when it released 2018
sales figures.  urn:newsml:reuters.com:*:nL8N1ZF0RX
    The maker of Lindor chocolate balls said it had made
substantial investments in North America "to lay the foundation
for profitable sales growth", but did not say whether it
expected improvements starting this year. 
    Net profit rose 7.6 percent to 487.1 million Swiss francs 
($487 million) in 2018, in line with expectations in an Infront
Data poll, the company known for its gold foil-wrapped Easter
bunnies said in a statement.  urn:newsml:reuters.com:*:nL5N20O4FJ 
    It proposed to pay out a dividend of 1,000 Swiss francs per
registered share, an increase of 7.5 percent over last year, and
also in line with forecasts. It had already reported a 5.1
percent increase in organic sales in January.
    Kepler Cheuvreux analyst Jon Cox said the group margin was
slightly below consensus dragged down by a 240 basis point
decline in North America. "Lindt is clearly still in the middle
of repositioning Russell Stover," he said.
($1 = 0.9996 Swiss francs)

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