Lindt & Sprüngli (LISN) H2 2025 (Media) earnings summary

Executive summary

• Achieved record organic sales growth of 12.4% to CHF 5.92 billion, the highest in company history, with all regions contributing despite volatile cocoa prices and market conditions.

• EBIT rose 9.8% to CHF 971 million, with margin improving to 16.4%; net income increased 8.1% to CHF 726.7 million.

• Earnings per share grew by 8.5%; free cash flow was CHF 446.3 million, slightly lower at 7.5% due to higher inventory values.

• Retail division grew 20.8% organically, with 53 new stores opened and significant brand innovation.

• Strong performance achieved despite volatile cocoa prices, geopolitical tensions, and weak global consumer sentiment.

Financial highlights

• EBIT margin increased by 20 basis points to 16.4%; EBITDA reached CHF 1,270.8 million, up 7.6% year-over-year.

• Free cash flow at CHF 446 million, impacted by CHF 320 million higher inventory; adjusted free cash flow would be CHF 760 million.

• Earnings per share hit a record CHF 3,164, up 54% since 2021.

• Equity ratio at 54.5%, up from 52.8%; dividend increased to CHF 1,800, payout ratio close to 58%.

• Sales grew 8.2% in CHF terms, impacted by a negative currency effect of -3.9%.

Outlook and guidance

• Organic sales growth guidance for 2026 lowered to 4%-6% due to price elasticity and weak consumer sentiment; EBIT margin improvement of 20-40 basis points per year confirmed.

• Medium- to long-term organic sales growth target of 6%-8% reaffirmed for 2027 and beyond.

• Expect negative volume mix in H1 2026, with flat to positive volume mix in H2.