SEMI-ANNUAL REPORT January – June 2013


Press Release

SEMI-ANNUAL REPORT

January – June 2013

  • Lindt & Sprüngli continues to report impressive growth
  • Sales in Swiss francs up 9.6% to CHF 1.132 billion, organic growth 8.7%
  • Operating profit (EBIT) plus 42.1% at CHF 65.5 million
  • Higher net liquidity at CHF 628.0 million
  • Market share gains in all strategically important markets
  • Strategic growth and profit targets of 6 to 8% and 20 to 40 basis points confirmed

Kilchberg, August 20, 2013 Lindt & Sprüngli reports once again sales and profit growth well above the market average in the first half 2013 and succeeds in extending the leading position in all the main markets.

The global economy reported a slight improvement which had a positive impact on consumer sentiment in many countries. In parallel, the pressure of several foreign currencies on the Swiss franc decreased somewhat. For the first time in several years the euro gained some strength again. Other important currencies such as the US dollar also reported a positive trend. The cool and rainy weather experienced in many places in the first half also had a favorable impact on chocolate consumption. In the raw material sector, cocoa bean prices remained relatively stable while those of cocoa butter, milk and nuts increased.

 

In North America, the world’s biggest chocolate market, Lindt & Sprüngli reported an organic sales growth of 12.7%. Thus, Lindt & Sprüngli is developing significantly faster than the overall chocolate market and makes a substantial contribution to its growth. Both LINDT USA and LINDT Canada together with GHIRARDELLI added to this very impressive development. The main European markets Germany, France, and UK, as well as Switzerland, also performed very well. In the declining Italian overall market, LINDT was able to maintain its previous year’s sales figures, so gaining market shares.

 

The Group’s expansion continues to progress. The recently opened subsidiaries in Russia, China, and South Africa have successfully started with accelerated development in their respective markets.

 

The LINDT “Global Retail” concept is best suited to presenting the high quality and diversity of the product assortment to consumers around the world, while creating a lasting shopping experience and generating sustainable customer ties. With organic growth compared to the same period last year reaching an excellent 23.8% at CHF 97.5 million, the activities of the LINDT “Global Retail” division show an impressive development in every respect. This important sector now contributes more than 8% to total Group sales. The number of newly opened boutiques with a consistent premium design is showing particularly dynamic growth. A very important success factor is the excellent relationship with shopping mall operators built up over many years. Lindt & Sprüngli is now being offered the finest locations as LINDT not only represents an important sales factor per square meter, but also contributes to the strong image of the shopping malls.

 

The newest lifestyle product line “HELLO – Nice to sweet you!” which appeals primarily to young chocolate lovers and those who have remained young at heart has got off to an impressive start. On that basis LINDT is planning to launch HELLO progressively worldwide in the next 15 months. Market tests are currently being run in all key markets.

 

Because of the above-average volume growth, major investments are currently being made to expand capacity at all main production sites.

 

When preparing the semi-annual financial statements, IAS 19 (revised) “Employee benefits” has been applied for the first time. The previous years’ comparatives have been recalculated and restated accordingly.

 

As of June 30, 2013, Group sales achieved CHF 1.132 billion. This represents a gain of 9.6% in Swiss francs and organic growth of 8.7% compared to the first half of 2012, which goes hand in hand with a further gain of important market shares.

 

The operating profit (EBIT) as of June 30, 2013, amounts to CHF 65.5 million, representing an increase of CHF 19.4 million or 42.1% compared to the adjusted figure for the same period in 2012. After deducting income tax at the rate of 25%, the Group’s net income for the first half of 2013 achieved CHF 48.8 million. This represents an increase of CHF 14.0 million or 40.2% compared to the adjusted figures of the previous year (CHF 34.8 million).

 

As of end of June 2013, operating cash flow reached CHF 210.5 million (June 30, 2012: CHF 158.8 million). Net liquidity amounts to CHF 628.0 million (December 31, 2012: CHF 543.0 million).

 

The share buyback program which began in 2011 was successfully completed at the end of 2012. On April 18, 2013, the ordinary shareholders’ meeting agreed to the destruction of the corresponding shares and participation certificates.

 

Outlook

For the year as a whole, Lindt & Sprüngli is confirming its medium to long-term strategic targets and forecasts organic sales growth of 6 to 8%. The increase in the operating profit margin compared to the figure of the previous year (i.e. before the IAS restatement) will be at the upper end of the target range of 20 to 40 basis points.

 

 

SEMI-ANNUAL REPORT 2013

 

When interpreting the first half-year results, it must be considered that Lindt & Sprüngli is active in the seasonal, gift-oriented premium chocolate segment in which less than 40% of total annual sales are achieved in the first half of the year. However, these figures must be set against the fact that around one-half of the fixed costs of production, administration, and marketing are already booked at the end of June. In the first half-year, profitability in relation to sales is therefore always well below the figure stated for the year as a whole.

 

When preparing the semi-annual financial statements, IAS 19 (revised) “Employee benefits” has been applied for the first time. The previous years’ comparatives have been recalculated and restated accordingly.

 

 

KEY FIGURES

INCOME STATEMENT

(unaudited)

 

 

2013

January – June

CHF million

 

 

2012

January–June1)

CHF million

 

 

 

Change

in %

Sales growth in local currencies

 

 

8,7%

Sales

1132,0

1032,6

9,6%

Other income

4,2

4,6

 

Total income

1136,2

1037,2

9,5%

Total expenses

-1070,7

-991,1

 

EBIT

65,5

46,1

42,1%

Net financial result

-0,5

0,1

 

Income before taxes

65,0

46,2

40,7%

Taxes

-16,2

-11,4

 

Net income

48,8

34,8

40,2%

Employees

8187

7450

9,9%

 

 

KEY FIGURES BALANCE SHEET (unaudited)

30.6.2013

CHF million

in % of total assets

31.12.20121)

CHF million

in % of total assets

ASSETS

 

 

 

 

Property, plant & equipment

814,7

 

771,4

 

Intangible assets & financial assets

927,3

 

155,3

 

Total non-current assets

1747,0

53,1%

926,7

35,1%

Inventories

476,8

 

405,1

 

Receivables / other assets

406,8

 

754,1

 

Securities & cash

653,1

 

555,0

 

Total current assets

1536,7

46,9%

1717,2

64,9%

Total assets

3278,7

100,0%

2640,9

100,0%

 

 

 

 

 

LIABILITIES

 

 

 

 

Total shareholders’ equity

2267,5

69,2%

1694,4

64,2%

Total non-current liabilities

483,9

14,7%

259,5

9,8%

Accounts payable to supplier / other

161,9

 

233,2

 

Accrued liabilities

341,1

 

442,9

 

Bank & other borrowings

24,3

 

10,9

 

Total current liabilities

527,3

16,1%

687,0

26,0%

Total liabilities & shareholders’ equity

3278,7

100,0%

2640,9

100,0%

1) 2012 comparatives have been restated according to IAS 19 (revised) „Employee benefits“

 

 

Extensive figures and notes on the Semi-Annual Report in English and German

are available on www.lindt.com(Investors – Financial Information).

 

Forward looking statements:

Some of the statements expressed in the semi-annual report are based on forward-looking assumptions. The actual results may vary from these for a variety of reasons, including factors such as general economic conditions, fluctuations within the currency and raw materials sector and changes to the regulatory landscape. Forward-looking statements made in this report are neither updated nor revised. The semi-annual report is published in German and English, with the German version being binding.

Lindt & Sprüngli will report on the further course of business on the following dates:

 

January 14, 2014: Net sales for 2013

March 11, 2014: Year-end presentation 2013 for press (morning); for financial analysts (afternoon)

April 24, 2014: 116th Annual General Meeting

August, 2014: Semi-annual report, January to June 2014


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Chocoladefabriken Lindt & Sprüngli AG

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phone +41 44 716 25 37

investorrelations-in@lindt.com