Chocoladefabriken Lindt & Spruengli Ag · SIX:LISN
Chocoladefabriken Lindt & Spruengli — Chocoladefabriken Lindt & Sprüngli — H1 2021 Earnings Presentation
28 slides from Chocoladefabriken Lindt & Spruengli's earnings presentation, Jul 27, 2021
Slide 1: Half-Year Results 2021
Half-Year Results 2021
Slide 2: Agenda
Agenda 1. Review Half-Year 2021 2. Sustainability update 3. Outlook 4. Q&A Half-Year Results July 27 2021 2
Slide 3: Review Half-Year 2021
Review Half- Year 2021 Half-Year Results
Slide 4: Overview – Half Year 2021
Overview – Half Year 2021 Exceptionally strong sales recovery positively impacting all key metrics Organic growth EBIT margin Net income margin Free cash flow Net debt position in % sales* 17.4% 5.6% 326 7.7% 12.7% 209 12.3% 1.3% HY 2020 HY 2021 1.1% -8.1% 13.2% 13.2% HY 2020 HY 2021 HY 2020 HY 2021
Slide 5: Organic Sales Growth
Organic Sales Growth Strong rebound re-establishes pre-Covid growth trajectory Absolute in CHF million (as published) 2,000 Growth rate in % (organic) 1,800 1,600 1,758 1,799 1,400 1,668 1,549 1,535 1,200 1,000 ,800 ,600 ,400 ,200 3.6% 5.1% 6.2% -8.1% 17.4% ,0 HY 2017 HY 2018 HY 2019 HY 2020 HY 2021
Slide 6: Reported Sales Growth
Reported Sales Growth Strong growth also in Swiss francs Absolute in CHF million (as published) 2,000 Growth rate in % (as published) 1,800 1,600 1,758 1,799 1,400 1,668 1,549 1,535 1,200 1,000 ,800 ,600 ,400 ,200 3.1% 7.7% 5.4% -12.7% 17.2% ,0 HY 2017 HY 2018 HY 2019 HY 2020 HY 2021 Half-Year Resul
Slide 7: Sales Analysis – Markets
Sales Analysis – Markets Strong growth across the board; UK, Italy & Rest of Europe outperforming Rest of the World CHF 237 million (+18.0%) North America CHF 621 million 13.2% (+18.8%) 4.1% North America 34.6% Germany 5.8% France Rest of Europe UK 7.5% Italy Switzerland Europe CHF 941 million 8.1%
Slide 8: Sales Analysis: Growth Drivers
Sales Analysis: Growth Drivers Volume driven performance with price/mix recovery Growth rate in % 20% 18% 0.5% -0.7% 16% 6.2% 17.4% 17.9% 17.2% 14% 12% 10% 11.2% 8% 6% 4% 2% 0% Volume Price / Mix Organic growth Acquisition Growth incl Forex Sales in CHF acquisition Half-Year Results July 27 2021 8
Slide 9: Sales Analysis: Segment Information
Sales Analysis: Segment Information Strong double-digit growth in all key markets, especially Germany, UK, US Absolute in CHF million (as published) Growth rate in % (organic) Europe North America Rest of the World 25.0% 25.0% 25.0% 20.0% 786 941 20.0% 551 621 198 237 20.0% 15.0% 15.0% 18.8% 15.0% 1
Slide 10: Material Costs (incl. change in inventories)
Material Costs (incl. change in inventories) Cost ratio at pre-Covid levels thanks to positive operating leverage Absolute in CHF ,800 In % to sales ,600 594 559 562 542 524 ,400 ,200 33.8% 33.5% 32.0% 35.3% 33.1% ,0 HY 2017 HY 2018 HY 2019 HY 2020 HY 2021 Half-Year Results July 27 2021 10
Slide 11: Cocoa Price
Cocoa Price Cocoa bean futures slightly decreasing in 2021 (Chart does not include LID (USD 400/mt) that we have paid since October 2020) 2,050 1,950 1,850 1,750 1,650 1,633 1,550 Half-Year Results July 27 2021 11
Slide 12: Personnel Expenses
Personnel Expenses Record-low cost ratio driven by economies of scale and US efficiencies In CHF million, in % to sales 600 400 443 464 458 416 422 200 26.9% 26.6% 26.4% 27.5% 25.5% 0 HY 2017 HY 2018 HY 2019 HY 2020 HY 2021 Half-Year Results July 27 2021 12
Slide 13: Operating Expenses
Operating Expenses Increased brand investments – offsetting operating leverage Absolute in CHF million 600 In % to sales 486 495 471 400 433 439 200 28.0% 28.2% 27.6% 28.6% 27.5% 0 HY 2017 HY 2018 HY 2019 HY 2020 HY 2021 Half-Year Results July 27 2021 13
Slide 14: Depreciation and Impairments
Depreciation and Impairments Broadly stable expense with improved cost ratio Absolute in CHF million In % to sales 160 120 128* 127* 125* 80 87 79 40 5.1% 5.2% 7.2% 8.2% 7.1% 0 HY 2017 HY 2018 HY 2019 HY 2020 HY 2021 * Additional depreciation due to new leasing reporting Half-Year Results July 27 20
Slide 15: Operating Profit (EBIT)
Operating Profit (EBIT) Record first-half operating profit and margin Absolute in CHF million 200 In % to sales +122 139 126 100 117 105 17 6.8% 7.0% 7.2% 1.1% 7.7% 0 HY 2017 HY 2018 HY 2019 HY 2020 HY 2021 Half-Year Results July 27 2021 15
Slide 16: Net Income
Net Income Record first-half net income; margin back to pre-Covid levels Absolute in CHF million In % to sales 150 +82 100 102 86 88 76 50 20 4.9% 5.1% 5.0% 1.3% 5.6% 0 HY 2017 HY 2018 HY 2019 HY 2020 HY 2021 Half-Year Results July 27 2021 16
Slide 17: Capital Expenditure
Capital Expenditure Continued investments in growth and efficiency Absolute in CHF million 160 120 134 117 117 100 80 86 40 0 HY 2017 HY 2018 HY 2019 HY 2020 HY 2021 Half-Year Results July 27 2021 17
Slide 18: Development of Net Financial Position
Development of Net Financial Position Strong free cash flow generation; high returns to shareholders Absolute in CHF million Free cash flow = 228 Returns to Shareholders = 321 200 -134 0 -209 +362 -200 -264 -57 -24 -326 -400 -600 01/01/2021 Operating cash CAPEX Dividend Share Buy Back Other 30/06/20
Slide 19: Sustainability update
Sustainability update Half-Year Results
Slide 20: The Lindt & Sprüngli Sustainability Plan
The Lindt & Sprüngli Sustainability Plan Our commitment for a better tomorrow With the Lindt & Sprüngli Sustainability Plan, we aim to: • Foster successful collaboration within the company • Improve the livelihoods of farmers in our countries of origin • Contribute to an intact environment, and • De
Slide 21: Sustainability Highlights 2020 – New Medium-Term Targets
Sustainability Highlights 2020 – New Medium-Term Targets Sustainable sourcing achievements: 100% of our sourced cocoa beans are traceable and externally verified Achieved sustainable sourcing targets for hazelnuts, palm oil, soy lecithin, and eggs 100% of cocoa bean farmers in child labour risk coun
Slide 22: Sustainable Packaging 2025
Sustainable Packaging 2025 y , New commitments: Source 100% of our pulp Make at least 50% Continously and proactively 1. 2. 3. and paper-based packaging of all our packag- challenge our entire packaging ing from recycled portfolio and strive to reduce supply chain materials packaging materials used
Slide 23: ESG Reporting
ESG Reporting The Lindt & Sprüngli Sustainability Report is our main communication on ESG performance Sustainability Report (2020) on the Lindt & Sprüngli website https://www.lindt-spruengli.com/sustainability Lindt & Sprüngli Farming Program and Reports www.farming-program.com Sustainability Polici
Slide 24: Outlook
Outlook Half-Year Results 24
Slide 25: Outlook – Full-Year 2021
Outlook – Full-Year 2021 Increase of organic sales growth guidance; greater confidence in profit delivery For the full year, the Group expects: • Organic sales growth in low double-digits vs. 6-8% previously • EBIT margin at upper end of previous 13%-14% guidance • Capex of around CHF 300 million, t
Slide 26: Outlook – Medium-Term
Outlook – Medium-Term Unchanged mid- to long-term goals • The Group confirms its 2022 and mid- to long-term goal of organic sales growth of 5% to 7%. • In 2022, we expect EBIT margin to be back at around 15%. Thereafter, over medium to long term, we target an increase of 20-40 basis points p.a. • In
Slide 27: Q&A
Q&A
Slide 28: Disclaimer
Disclaimer This presentation contains forward-looking statements which reflect 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 statements.
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