UBS considers the results to be solid and underlines the confirmation of the outlook. Volumes are picking up slightly and the Group is off to a good start in 2024.
The analyst remains Buy on the stock, with an unchanged target price of 125,500 Swiss francs, representing a 16% upside potential.
' The results and outlook are solid overall, the only small negative point being the drop in volume/mix in the 2nd half compared with the 1st half of 2023, but other points overcompensate, in our opinion ' says the analyst firm.
' The company is on track to increase margins in 2024E despite the spike in cocoa prices ' says UBS.
For 2024, Lindt & Sprüngli expects organic sales growth of 6-8% and an improved operating profit margin of 20-40 basis points.
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Chocoladefabriken Lindt & Spruengli AG is a Switzerland-based and globally active holding company developing, producing and selling chocolate products. The Companyâs products are sold under the brand names Lindt, Ghirardelli, Caffarel, Hofbauer and Kufferle. The Company has six production sites in Europe and two in the United States. The Company sells its products mainly in countries within Europe and the North American Free Trade Agreement (NAFTA) countries. In September 2014, it announced the placement of 1 billion Swiss francs worth of bonds issues to finance Russell Stover Candies takeover. The Companyâs subsidiaries include Chocoladefabriken Lindt & Sprngli (Schweiz) AG, Chocoladefabriken Lindt & Sprngli GmbH, Lindt & Sprngli SAS, Lindt & Sprngli (UK) Ltd, Lindt & Sprngli (Poland) Sp. z o.o., L&S (Brazil) Holding Ltd and Lindt & Sprngli (Asia-Pacific) Ltd., among others.
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