Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Trading

Lindt & Spruengli aims for 6-8% sales growth, announces share buyback

2021 03 02T064240Z 1 LYNXMPEH210AO RTROPTP 4 LINDT SPRUENGL RESULTS 1 - Global Banking | Finance

By Silke Koltrowitz

ZURICH (Reuters) – Swiss chocolate maker Lindt & Spruengli said on Tuesday it aimed for 6-8% organic sales growth this year thanks to pent-up demand after the pandemic hit its business and made net profit slide last year.

Chocolate makers are grappling with subdued demand as consumers buy fewer chocolates as gifts or while traveling during the COVID-19 pandemic, and Lindt has also been hit by the temporary closure of its own stores.

Net profit fell 37.5% to 320.1 million Swiss francs ($349.53 million) in 2020, the maker of Lindor chocolate balls and gold foil-wrapped Easter bunnies said in a statement.

But the company said it was convinced that the chocolate market, and in particular the premium segment it operates in, would continue to grow in the future.

It said it expected organic sales to grow 6-8% this year and then, from 2022 onwards, 5-7% per year in line with its medium term guidance.

The Zurich-based company also announced a new share buyback programme of 750 million francs from June this year to the end of next year and will pay out a dividend of 1,100 francs per registered share and of 110 francs per participation certificate.

It had paid out an exceptionally high dividend for its anniversary last year.

“Overall, a solid print with cash flow and the announcement of a buyback the main positive surprises,” Kepler Cheuvreux analyst Jon Cox said, adding the outlook was also upbeat, but more or less in line with street expectations.

Lindt & Spruengli had already flagged a 6.1% drop in 2020 organic sales in January. The contraction in sales led its operating profit margin to fall to 10.5%, from 13.2% in 2019.

It said the margin should return to 13-14% this year and then to 15% in 2022.

($1 = 0.9158 Swiss francs)

(Reporting by Silke Koltrowitz; Editing by Riham Alkousaa and Brenna Hughes Neghaiwi)

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post