Starts up to 500 mln francs share buyback (Il Sole 24 Ore Radiocor) - Bern, 23 Jul - Swiss chocolate maker Lindt & Spruengli said its first half sales rose an organic 7% to 2.16 billion francs thanks to a mid-single-digit increase in prices and a 0.9% rise in the volume/mix that offset higher cocoa prices Europe saw a 9.3% organic sales rise, while North America a 3.0% rise. The Rest of the World region saw 10% growth with double digit increases in Japan and Brazil EBIT rose to 292.3 million francs from 255 million a year ago for a margin of 13.5% from 12.2% with efficiency gains and price increases, compensating for higher cocoa material costs.

A legal dispute in North America was resolved and had a positive one-time impact on other income. Net income totaled 218.0 million from 204.5 million a year ago.

Free cash flow reached 70.4 million francs, down from 137.3 million, with a margin of 3.3% from 6.6%, due to increased capital expenditure for capacity expansion projects to satisfy future volume growth.

The group is confident that it will reach the objectives announced for the full year 2024, with sales growth in the range of 6-8% and an EBIT margin increase expected at the upper end of the 20-40 basis points range. For the coming years, the Group continues to reiterate its medium- to long-term sales growth targets of 6-8% with an improvement in the operating profit margin of 20-40 basis points per annum.

Lindt said it would start a new buyback program of up to 500 million francs, starting August 2 and running to July 31, 2026, at the latest.

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(RADIOCOR) 23-07-24 11:10:13 (0253) 5 NNNN