Swiss chocolate maker Lindt expects sales to grow 6 pct this year (updated)

Chocoladefabriken Lindt & Spruengli AG

07/03/2017 06:55

(Adds detail, background, analyst quote) 
    ZURICH, March 7 (Reuters) - Swiss chocolate maker Lindt & 
Spruengli  LISP.S  raised its dividend and said it expected 
organic sales to again grow around 6 percent this year after a 
lower tax rate helped boost its net profit in 2016. 
    The company said on Tuesday it was counting on a gradual 
improvement in consumer sentiment and a more stable situation in 
commodities markets to help it meet its long-term goals of 6-8 
percent organic sales growth over the coming years. 
    Global chocolate demand is down as consumers tend to prefer 
healthier snacks, but Lindt bucks that trend by marketing its 
Easter bunnies and Lindor chocolate balls as high-quality treats 
customers can indulge in at special moments. 
    Net profit at the group based in Kilchberg near Zurich rose 
10 percent to 420 million Swiss francs ($415.2 million) last 
year, allowing it to raise its dividend by 10 percent to 880 
francs per registered share, in line with forecasts in a Reuters 
poll.  urn:newsml:reuters.com:*:nL5N1GG331 
    Lindt said in January its underlying sales grew 6.0 percent 
in 2016, making it one of the fastest-growing food and beverage 
companies, ahead of Hershey  HSY.N  at 0.8 percent, Mondelez's 
 MDLZ.O  chocolate division at 2 percent and Nestle's  NESN.S  
confectionery business at 1.8 percent.  urn:newsml:reuters.com:*:nL5N1F70UA  urn:newsml:reuters.com:*:nL4N1FO2RM 
 urn:newsml:reuters.com:*:nL4N1FS55I 
    The expansion of the group's chocolate shops helped sales 
growth, while adjustments of recently acquired Russell Stover's 
product portfolio weighed on the North American business, the 
company said.  
    Kepler Cheuvreux analyst Jon Cox said the results were 
strong compared to food peers, with Europe "an absolute 
stand-out" as it showed the group's ability to grow even in 
saturated markets.     
    ($1 = 1.0116 Swiss francs) 
 
 (Reporting by Silke Koltrowitz; Editing by Amrutha Gayathri) 
 ((silke.koltrowitz@thomsonreuters.com; +41 58 306 7454; Reuters 
Messaging: silke.koltrowitz.thomsonreuters.com@reuters.net)) 
 
Keywords: LINDT RESULTS/