Lindt & Sprüngli's continues its solid growth pattern with the latest annual results 2015.
Article continues below
eak]
The Lindt & Sprüngli group achieved consolidated sales of CHF 3.65 billion, which equates to an increase of 13.5% in local currencies and 7.9% in Swiss francs.
Overall, the group achieved organic sales growth of 7.1% The group's operating profit (EBIT) rose by 9.4 % to CHF 518.8 million. Therefore the strategic growth and sales targets were met.
During the past financial year 2015 the economic environment was once again extremely challenging.
First and foremost, the Swiss National Bank's decision to abandon the exchange-rate floor between the Euro and the Swiss franc had noticeable consequences for the Swiss economy.
On top of that, a series of negative factors weighed on global consumer sentiment: record-high raw material prices (especially for cocoa beans), the recession in oil-exporting countries, the unsettling effects of terrorist threats and concerns about deflation and unemployment in the mature economies.
A very hot summer followed by an extremely mild start to winter both had a negative impact on chocolate consumption. This led to sluggish demand in the overall chocolate market. Despite all this, the Lindt & Sprüngli group performed well in all markets, and managed to increase its market shares.
Organic growth in the Europe segment amounted to 5.4%. Lindt & Sprüngli U.K. reported strong double-digit growth, while the sales figures achieved by Germany and France, the group's biggest European subsidiaries, were also much higher than the market average. Performance in the home market of Switzerland was strong as well, despite a decline in the Swiss chocolate market as a whole.
In North America, Lindt & Sprüngli concentrated its efforts on integrating Russell Stover. The integration is progressing according to plan. Despite the necessary process adjustments and restructuring, Lindt & Sprüngli was able to maintain momentum and increase its sales compared with the previous year, as well as expand its presence in North America.
This enabled Lindt & Sprüngli to achieve organic sales growth of 7.9 % in the NAFTA region. With this result, the group strengthened its no. 3 position in the world's biggest chocolate market and its no. 1 position in the premium segment. The clear focus and systematic approach in realizing strategically important acquisitions are paying off.
The Rest of the World segment reported organic growth of 11.4%. Subsidiaries in Australia, Japan and Russia made particularly good progress, recording double-digit sales growth.
In Latin America, Lindt & Sprüngli is concentrating on the strategically important market of Brazil, which is also delivering double-digit growth. Our joint venture with the CRM group supports this dynamic development.
The group's operating profit (EBIT) rose by 9.4 % to CHF 518.8 million (2014: CHF 474.3 million). The operating margin rose to 14.2%. Net income increased by 11.2% to CHF 381.0 million (2014: CHF 342.6 million).
The return on sales amounted to 10.4 %, with an operating cash flow of CHF 488.9 million (2014: CHF 308.2 million). The balance sheet is still very solid. ■