FDBusiness.com

Strong Recovery By Lindt & Sprungli

 Breaking News
  • World’s Most Modern Snack Plant Begins Operations in Finland The world’s most modern dairy snack plant has commenced operation at Valio Riihimäki in Southern Finland. The snack plant is the largest single investment in Valio’s history. Construction of the new snack plant began in 2014 and took about three years. The area of the plant building is approximately 20,000 square metres. The plant is [...]...
  • FrieslandCampina Sells Fruit Juice Business The Dutch investment company Standard Investment is acquiring Riedel, the fruit juice business of FrieslandCampina, for an undisclosed sum. Based at Ede in the Netherlands, Riedel has a turnover of about €125 million and employs 200 people. Completion of the transaction is expected before the end of 2017. Earlier this year, FrieslandCampina announced that it would [...]...
  • LacPatrick is Cream of the Crop in UAE LacPatrick, the international dairy co-operative, has secured over £1 million of sales of its LP spray dried whole milk and skimmed milk powder in the United Arab Emirates (UAE), following participation at the Gulfood exhibition in February 2017. LacPatrick is one of Northern Ireland’s major manufacturing employers, employing over 300 staff across its Ballyrashane, Artigarvan [...]...
  • Tate & Lyle Launches CLARIA® Instant Functional Clean-Label Starches Tate & Lyle, a leading global provider of food ingredients and solutions, has announced a further expansion of its line of CLARIA® Functional Clean-Label Starches with the introduction of two new instant starch products: CLARIA® Instant 340 and 360. As claims such as ‘smooth’, ‘luscious’ and ‘velvet’ continue to grow, manufacturers are eager to develop textures [...]...
  • Reveal Impact – Ardagh Group to Launch a Two-Stage Thermochromic Solution Reveal Impact features combined temperature-sensitive inks with a twist. The new solution for aluminium cans uses two different thermochromic inks, which both boast the same colour when cooled down. However, once the can gets warmer again, one colour disappears quicker than the other, revealing a hidden message to the consumer. The revealed message surprises the [...]...
  • HKScan Opens New €80 Million Poultry Plant HKScan, the Nordic meat group, has just opened its new, state-of-the-art poultry unit at Rauma in Finland. Valued at over €80 million, the new facility is the largest investment in HKScan’s history. Indeed, the state-of-the-art Rauma unit ranks among the most significant investments in the history of the Finnish food industry. Jari Latvanen, president and chief [...]...

Strong Recovery By Lindt & Sprungli

Strong Recovery By Lindt & Sprungli
March 16
15:37 2011

Benefiting from improving consumer sentiment across its domestic and international markets, Swiss premium chocolate manufacturer Lindt & Sprungli has reported a 25.3% jump in net profit to SFr241.9m (Eur189m) for 2010. Group sales were SFr2.58b, showing strong organic growth of 7.3% during 2010 but growth in Swiss francs was 2.2%. Despite the negative currency factors, EBIT was 22.8% higher at SFr325.3m, while the EBIT margin improved from 10.5% to 12.6% during the year.

During the period of global recession, consumers had tended to shift to lower priced private label products; however, as the upturn set in the demand for high quality chocolates returned. All the subsidiary companies, except for Australia, achieved faster growth than the market average and so contributed to the strong group financial performance. The leaders were the two important North American markets (USA and Canada with the Lindt and Ghirardelli brands), together with Great Britain, Europe’s biggest chocolate market, where double-digit growth was achieved.

In countries like Italy, Spain, France and Germany, which had been hit by the economic crisis and the accompanying weaker consumer sentiment in 2009, Lindt & Sprüngli achieved substantial growth rates. Even in the highly competitive Swiss domestic market, Lindt & Sprungli managed to consolidate its leading position and further increase its market shares. Although sales in Australia fell short of expectations overall, the concept of the ‘Lindt Chocolat Cafes’ continued its highly satisfactory development, and the opening of further cafes is planned.

The strong results are in line with the forecasts already announced by Lindt & Sprungli in the spring of 2010, and show that the structural measures and adjustments made in the last two years have created a new dynamic so as to benefit from an upturn in market conditions. The balance sheet remains healthy. At the end of 2010, the equity ratio and net cash flow of the business stood at 66.2% and SFr540m respectively.

During the 2010 financial year, the major investment project to expand the US production site was successfully completed after four years of work. The plant now has all the facilities needed to handle every single production step from cocoa bean processing to the finished and packed product on site, and is no longer dependent on cocoa mass imports. This also optimises currency risks and transport costs. In addition, substantial investments were made to enter new markets, including the incorporation of a subsidiary company in Japan, as well as further expansion of the global network of own boutiques and ‘Lindt Chocolat Cafes’.

Outlook For 2011

Lindt & Sprungli expects the recovery of the world economy and the improvement in consumer sentiment to continue in the 2011 financial year. However, the unstable commodity market situation, especially for cocoa, is likely to persist because of political unrest in the Ivory Coast, the biggest cocoa producer. The trend of prices for other raw materials, such as milk, sugar and nuts, also remains uncertain.

With a full pipeline of new ideas and innovative products, Lindt & Sprungli is well placed to achieve further growth and strengthen its position as world leader in the premium chocolate segment. In 2011, the focus will once again be placed on market share gains in key markets. In addition, geographical expansion into the new growth markets will continue.

For the financial year 2011, the Lindt & Sprungli expects organic growth of 6-8% and an improvement in its operating results (EBIT) of 8-10%, in line with the group’s long-term strategic objectives.

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2017drinktec
  • September 13, 2017FI Asia
  • September 19, 2017PROCESS EXPO 2017
  • September 22, 2017Global Summit on Food & Beverages
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers

Advertisements