Chocoladefabriken Lindt & Spruengli Ag · SIX:LISN
Chocoladefabriken Lindt & Spruengli — Chocoladefabriken Lindt & Sprüngli — H1 2023 Earnings Presentation
30 slides from Chocoladefabriken Lindt & Spruengli's earnings presentation, Jul 25, 2023
Slide 1: We Enchant the World with Chocolate
Slide 2: Half-Year Results 2023
Half-Year Results 2023 Martin Hug Group CFO July 25, 2023
Slide 3: Agenda
01 Review Half-Year 2023 02 Update on Sustainability 03 Outlook 04 Q&A 3
Slide 4: Review Half-Year 2023
Review Half-Year 2023
Slide 5: Overview – Half-Year 2023
939 667 Overview – 12.3% 12.2% Half-Year 2023 10.1% 9.3% 9.8% 10.2% 6.9% 6.6% Strong Sales and EBIT development HY HY HY HY HY HY HY HY HY HY 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 Organic EBIT Net income Free cash flow Net debt growth margin margin in % Sales position 5
Slide 6: Sales Growth in CHF
Absolute in CHF million (as published) Growth rate in % (as published) 2’086 1’992 1’758 1’799 Sales Growth 1’535 in CHF Net Sales reaching CHF 2 billion for the first time by 17.2% 10.7% Half-Year 5.4% 4.7% -12.7% HY 2019 HY 2020 HY 2021 HY 2022 HY 2023 6
Slide 7: Organic Sales Growth
Absolute in CHF million (as published) Growth rate in % (organic) HY 2023 10.1% Organic HY 2022 12.3% Sales Growth HY 2021 17.4% Five year CAGR of 7.1% HY 2020 -8.1% HY 2019 6.2% 7
Slide 8: Sales Growth Factors
Growth rate in % (as published) 0.8% 10.1% 0.7% 9.3% Sales 4.7% Growth Factors 4.7% Double-digit organic growth driven by Price and Mix Price Volume / Organic growth L&S Russia FX in CHF Mix 8
Slide 9: Sales Analysis Segment Information
Absolute in CHF million (as published) Growth rate in % (organic) Europe North America Rest of the World 16.9% Sales Analysis 15.2% 273 Segment 739 Information 11.2% 11.1% 9.1% 8.9% 798 282 All segments developing 980 1,006 strongly HY 2022 HY 2023 HY 2022HY 2023 HY 2022 HY 2023 9
Slide 10: Material Costs incl. Change in Inventories
Absolute in CHF million (as published) Ratio in % to Sales 628 627 Material Costs incl. Change 594 in Inventories 562 Price increases and 542 positive hedging leading to a favorable cost ratio 35.3% 32.0% 33.1% 31.5% 30.0% HY 2019 HY 2020 HY 2021 HY 2022 HY 2023 10
Slide 11: Cocoa Price
Cocoa Price However, cocoa bean prices increasing steeply since January 2023 (more than +30%!) 2,700 Cocoa bean prices in GBP/t 2,500 2,300 2,100 1,900 1,700 Mar 22 Apr 22 May 22 Jun 22 Feb 23 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Mar 23 Apr 23 May 23 11
Slide 12: Personnel Expenses
In CHF million (as published) In % to Sales Personnel 493 484 Expenses 464 458 Record low-cost ratio for Half-Year 422 26.4% 27.5% 25.5% 24.3% 23.7% HY 2019 HY 2020 HY 2021 HY 2022 HY 2023 12
Slide 13: Operating Expenses
Absolute in CHF million (as published) In % to Sales 573 594 Operating 486 495 Expenses 439 Continued strong marketing investments into the brands. Improved logistics costs 28.6% 28.8% 28.5% 27.6% 27.5% HY 2019 HY 2020 HY 2021 HY 2022 HY 2023 13
Slide 14: Operating Profit (EBIT)
Operating Profit (EBIT) Strong improvement in Half-Year EBIT margin Absolute in CHF million (as published) In % to Sales 255 185 126 139 17 12.2% 7.2% 7.7% 9.3% 1.1% HY 2019 HY 2020 HY 2021 HY 2022 HY 2023 14
Slide 15: Net Income
Net Income Strong Net Income Margin thanks to higher EBIT, better net financial result and lower tax rate Absolute in CHF million (as published) In % to Sales 205 138 102 88 9.8% 6.9% 5.0% 20 5.6% 1.3% HY 2019 HY 2020 HY 2021 HY 2022 HY 2023 15
Slide 16: Development of Net Financial Position
Development of Net Financial Position Continued high returns to shareholders Absolute in CHF million (as published) Free cashflow = 137 + Shareholder return = 558 + 16
Slide 17: Sustainability Update
og LINDT & SPRUNGLI Sustainability Update
Slide 18: The Lindt & Sprüngli Sustainability Plan
Our Sustainability Plan centers around Lindt & Sprüngli’s focus areas Delighting Improving grouped under four pillars Consumers Livelihoods and objectives: Transparent and responsible Rural development communication Responsible Sourcing • Improve the livelihoods Product quality and product of people
Slide 19: Sustainability Highlights
Responsible Formalized our commitment to respect Climate sourcing human rights in a targets standards Human submitted to the Sustainability defined for Paper, Vanilla, Rights Science Based and Sugar Policy Target initiative Highlights 2022 Committed CHF 1.25 million to the Responsible Child marketin
Slide 20: Outlook
Outlook
Slide 21: Outlook
Financial Year Medium to → 2023 long-term 7-9% 6-8% Organic sales growth Expected organic sales Outlook (vs. 6-8% prev.) growth p.a. Organic sales growth guidance and EBIT 30-50 20-40 Basis points Basis points margin forecast has EBIT margin increase EBIT margin increase p.a. been raised for 2023 (v
Slide 22: Q&A
Q&A 22
Slide 23: Disclaimer
Disclaimer This presentation contains forward-looking statements which reflect the management’s current views and estimates. The forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking stateme
Slide 24: Appendix
Appendix 24
Slide 25: Sales Analysis – Markets
Total Group sales in North America CHF 798 million Europe CHF 1’006 million CHF 2’086 million (+10.1%) Rest of the World CHF 282 million Rest of the World, 13.5% Sales Analysis Rest of Europe, 7.2% – Markets North America, 38.3% CH (excl. DIS and Strong growth across the GTR), 4.3% globe; North Amer
Slide 26: Depreciation and Impairments
Depreciation and Impairments Broadly stable expense with improved cost ratio Absolute in CHF million (as published) In % to Sales 127 128 133 128 125 37* 36* 37* 38* 38* 90 89 91 95 90 7.2% 8.2% 7.1% 6.7% 6.1% HY 2019 HY 2020 HY 2021 HY 2022 HY 2023 * Additional depreciation due to new leasing IFRS
Slide 27: EBIT by Segment
Absolute in CHF million (as published) EBIT margin in % Europe North America Rest of the World 17.2% EBIT 173 14.2% 14.2% by Segment 12.5% 39 40 122 Increase in EBIT margin in Europe and North America 5.3% 3.3% 43 24 HY 2022 HY 2023 HY 2022 HY 2023 HY 2022 HY 2023 27
Slide 28: Capital Expenditure
Absolute in CHF million (as published) Capital Expenditure 148 134 117 121 Continued high investments in 100 growth and efficiency HY 2019 HY 2020 HY 2021 HY 2022 HY 2023 28
Slide 29: Lindt & Sprüngli Farming Program for Cocoa
Four pillars of the Program based on a Theory of Change 1 Tracing our beans 2 Training the farmers 3 Investments for farmers and communities Lindt & Sprüngli 4 Independently verifying our Program Farming Program + for Cocoa CHF 27.5 million invested in cocoa Objectives sustainability in 2022 • Incre
Slide 30: Farming Program highlights 2022
Farming Program highlights 2022 CHF 27.5 million 97 + 175,000 invested in cocoa sustainability, of which CHF 26.5 new drinking water systems community members benefit million was paid to cocoa suppliers for operating cocoa and boreholes built in the from the investments in water sustainability progr
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