Swiss chocolate giant Lindt & Spruengli announced projections for 5-7% organic sales growth in 2019, aligning with long-term targets despite ongoing challenges in its North American operations. The company emphasized strategic investments in Asia and Africa as key drivers for expansion, while acknowledging persistent difficulties in revitalizing its Russell Stover subsidiary acquired to strengthen U.S. market presence.
The firm reported a 7.6% rise in net profit to 487.1 million Swiss francs ($487 million) for 2018, meeting market expectations. This follows a 5.1% increase in organic sales growth recorded in January 2019. Lindt also announced a 7.5% higher dividend of 1,000 Swiss francs per share, consistent with analyst forecasts.
Analysts noted that North America contributed to margin pressures, with a 240 basis point decline impacting overall performance. Kepler Cheuvreux's Jon Cox stated, "Lindt is clearly still in the middle of repositioning Russell Stover." The company cautioned that turnaround efforts in the U.S. market require more time, though it maintained its 2019 growth outlook.
The announcement coincided with Lindt's annual news conference in Kilchberg, Switzerland, where executives highlighted long-term strategies to counter market saturation in Europe and the U.S. The firm's focus on premium products and retail network expansion contrasts with broader industry trends toward healthier snacking options.
