Lindt promises sweet dividend and further growth (updated)

Chocoladefabriken Lindt & Spruengli AG

03/03/2020 06:44

(Adds details, context)
    ZURICH, March 3 (Reuters) - Swiss chocolate maker Lindt &
Spruengli  LISN.S   LISP.S  on Tuesday proposed a sweeter payout
to shareholders, increasing its dividend by 75% to mark its
175th anniversary.
   Chocolate makers are facing sluggish growth, particularly in
saturated U.S. and European markets, as consumers often opt for
healthier snacks these days, but Lindt has fared better than
peers thanks to its upmarket positioning.
    "For the coming years, Lindt & Spruengli confirms its
existing mid- to long-term organic sales growth target of 5-7%
per year," the maker of Lindor chocolate balls and gold
foil-wrapped Easter bunnies said in a statement on Tuesday.
    It added that it would also steadily improve its operating
margin.
    Net profit increased by 5.1% to 511.9 million Swiss francs
($534.57 million) last year and profitability also improved, the
company said, proposing to pay out a dividend of 1,750 francs
per registered share for 2019. 
    The net profit was just below a 518.1 million franc estimate
in a Refinitiv poll, but the dividend was well above the 1,080
franc estimate.    
    In January Lindt posted a 6.1% increase in full-year organic
sales growth.  urn:newsml:reuters.com:*:nL8N29J0N3
    Lindt is also relying on the expansion of its retail network
of Lindt-branded stores to drive growth. It now has around 500
shops and cafes worldwide and said it wanted to pursue its
global expansion this year.
($1 = 0.9576 Swiss francs)

 (Reporting by Silke Koltrowitz, editing by John Revill and
Michelle Martin)
 ((silke.koltrowitz@thomsonreuters.com; +41 58 306 7454; Reuters
Messaging: silke.koltrowitz.thomsonreuters.com@reuters.net))