Lindt & Sprüngli's organic sales growth in 2024 surpassed market expectations as the demand for gifting, pralines, and hollow figures led to global market share gains in both value and volume. The Swiss chocolatier managed to increase prices to tackle the higher cost of cocoa while also achieving increased sales across all regions, culminating in group sales of 5.47 billion francs for the 12 months ended Dec.
31, 2024, compared to 5.2 billion francs the previous year. The company's organic growth rate of 7.8% not only exceeded the Baader Helvea Equity Research estimate of 7.3% but also surpassed the AWP consensus of 7.2%. This robust performance is noteworthy given the backdrop of record-high cocoa costs, substantial price increases, and a slight weakening in consumer sentiment, as highlighted by Lindt. Regionally, Europe was the leading market, generating 2.59 billion francs in sales and demonstrating an impressive organic growth rate of 9.5%, up from 2.41 billion francs in the prior year.
The UK, Central Eastern Europe, France, and Benelux all recorded double-digit growth rates. In North America, organic growth reached 5%, with total sales climbing to 2.15 billion francs from 2.11 billion francs, influenced by a shift in Easter orders to 2023 and major retail customers destocking during the first half of 2024. Additionally, Lindt reported a 10% organic sales growth in the rest of the world, driven by double-digit increases in crucial markets such as Brazil, Japan, and China.
Sales in this region rose to 720 million francs from 680 million francs. Looking ahead, the company anticipates further price increases in response to cocoa rates, forecasting organic growth for 2025 to fall between 7% and 9%. Baader Helvea estimates an 8.7% growth while the Visible Alpha consensus stands at 7.9%.
Moreover, beyond 2025, Lindt & Sprüngli reiterated its long-term organic sales growth targets, which range between 6% to 8%. Reflecting on their solid sales figures for 2024, Baader Helvea commented on Lindt’s clear visibility into 2025, emphasizing that the company offers a stable and quality business environment not easily found within the Swiss food sector amid the current uncertainties.
Their positive stance is supported by strong pricing power, comparatively lower cocoa exposure than confectionery peers, profitability opportunities in North America, and consistent results momentum delivery. In the wake of these announcements, shares of Lindt & Sprüngli gained nearly 4% Tuesday morning..