Chocoladefabriken Lindt & Spruengli Ag · SIX:LISN
Chocoladefabriken Lindt & Spruengli — Chocoladefabriken Lindt & Sprüngli — FY2024 Earnings Presentation
49 slides from Chocoladefabriken Lindt & Spruengli's earnings presentation, Mar 4, 2025
Slide 1: Full-year results 2024
Full-year results 2024 Kilchberg, March 4, 2025
Slide 2: Agenda
Agenda 01 Highlights 2024 Adalbert Lechner 02 Regional performance Adalbert Lechner 03 Financial Results 2024 Martin Hug 04 Sustainability Martin Hug 05 Growth Agenda & Outlook Adalbert Lechner Adalbert Lechner & 06 Q&A Martin Hug
Slide 3: Financial highlights
Group sales (CHF) 5.47 bn EBIT (CHF) 884 m Organic sales growth +7.8% EBIT margin 16.2% (+60bp) Financial highlights Volume/Mix growth Free cash flow (CHF) Lindt & Sprüngli delivers strong performance in Sales, +1.5% 635 m EBIT, and Free Cash Flow Free cash flow margin 11.6% (+240bp)
Slide 4: Sustainability program highlights
84.2% (+11.9pp) of cocoa products sourced through Farming Program or other responsible sourcing programs 82.2% (+24.1pp) of the sourced volumes of raw and packaging materials covered by a responsible sourcing Sustainability program highlights On track to achieve our 2025 Awarded with targets EcoVadi
Slide 5: Global Chocolate Market and Trends in 2024
Global Chocolate Market and Trends in 2024 Challenging market environment Global chocolate market Cocoa price inflation Trends impacted by price increases Volume decline − slight value increase Cocoa price soared to historic highs Ongoing premiumization Private label gaining + Crop yields in West Af
Slide 6: Regional performance
x LINDT & SPRUNGLI Q2 Regional performance
Slide 7: Sales growth across regions
+5.0% organic growth 39.4% REST OF THE WORLD NORTH AMERICA Sales growth EUROPE across regions +10.0% 13.2% organic growth Group Organic sales growth +7.8% 47.4% +9.5% organic growth
Slide 8: Europe
Europe
Slide 9: Excellent development in Europe
Excellent development in Europe Organic growth Germany France UK Italy Switzerland +5.6% +12.3% +15.7% +4.6% +6.8% CEE Iberia Austria Nordic Benelux +20.7% +9.4% +8.5% +7.3% +31.5% REST OF THE WORLD 2.59 bn NORTH AMERICA Total sales in CHF 1 Strong results in France with Excellence remaining the mar
Slide 10: North America
North America
Slide 11: Solid performance despite a weak chocolate market
Solid performance despite a weak chocolate market Organic growth Ghirardelli Lindt USA Russell Stover +9.4% +4.9% -5.3% Canada Mexico +6.8% +9.3% REST OF THE WORLD 2.15 bn NORTH AMERICA Total sales in CHF 1 Increased popularity from North American EUROPE consumers and significant market share gains
Slide 12: Ghirardelli Store
Ghirardelli Store Empire State Building
Slide 13: Rest of the World
Rest of the World
Slide 14: Strong growth in the Rest of the World
Strong growth in the Rest of the World Organic growth Distributors Australia Japan +5.4% +2.5% +24.7% Global Travel Retail Brazil China +9.3% +17.7% +16.8% REST OF THE WORLD 0.72 bn NORTH AMERICA Total sales in CHF Excellent development in core markets like Brazil, EUROPE 1 Japan, and China. +10.0%
Slide 15: Direct to Consumer business (Global Retail)
Direct to Consumer business (Global Retail) Unique brand building opportunity and premium shopping experience +16.7% Organic sales growth First store openings in Chile, Mexico +7.6% comp. store growth and New Zealand 568 (+45) + Loyalty program “MyLindt” gives us access to first party data Physical
Slide 16: Financial Results 2024
03 Financial Results 2024
Slide 17: Overview – Year 2024
2’889 2’917 11.6% 16.2% +10.3% 9.2% Overview – +7.8% Year 2024 943 15.6% 882 Key performance indicators remain strong 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 Organic EBIT Free CF Earnings Net debt growth margin margin per share position (CHF) (CHF million)
Slide 18: Organic sales growth
2024 +7.8% 2023 +10.3% Organic sales growth 2022 +10.8% Compound average growth rate in the last 5 years of +6.9% (despite the pandemic) 2021 +13.3% 2020 -6.1%
Slide 19: Sales Growth in CHF
Absolute in CHF million (as published) Growth rate in % (as published) 5’468 5’201 4’970 4’585 4’017 Sales Growth in CHF +14.2% +8.4% +4.6% +5.1% Sales reaching a new record high of CHF 5.5 billion despite the strengthening of CHF -10.9% 2020 2021 2022 2023 2024
Slide 20: Sales: Growth Factors
Growth rate in % +1.5% +7.8% -2.7% +6.3% Sales: +5.1% Growth Factors Organic growth of 7.8% driven by price and positive Volume/Mix Price Volume/Mix Organic Forex In CHF
Slide 21: Sales Analysis: Segment Information
Growth rate in % (organic) Absolute in CHF million (as published) Europe North America Rest of the World +12.9% +11.0% +10.0% Sales Analysis: +9.1% +9.5% Segment Information Strong growth in Europe and +5.0% solid growth in the other regions 2,407 2,590 2,111 2,155 683 724 2023 2024 2023 2024 2023 2
Slide 22: Material Costs incl. Change in Inventories
Absolute in CHF million Ratio in % to sales 1’904 1’678 1’706 1’518 1’422 Material Costs incl. Change in Inventories Higher expense ratio partly compensated by price 35.3% 34.8% increases 33.8% 33.1% 32.9% 2020 2021 2022 2023 2024
Slide 23: Cocoa Price
Cocoa Price Record high cocoa bean prices ICE London Cocoa Futures (2nd position) in GBP/t 10’000 9’000 8’000 7’000 6’000 Chart does not include LID (USD 400/mt) which the 5’000 Lindt & Sprüngli Group paid 4’000 since its introduction in 3’000 October 2020 2’000 1’000 0 Jan/22 Mar/23 Feb/22 Mar/22 M
Slide 24: Personnel Expenses
Absolute in CHF million Ratio in % to sales 1’066 1’008 1’026 986 885 Personnel Expenses Positive trend continues 22.0% 21.5% 20.3% 19.7% 19.5% 2020 2021 2022 2023 2024
Slide 25: Operating Expenses
Absolute in CHF million Ratio in % to sales 1’404 1’398 1’295 1’191 1’036 Operating Expenses 27.0% Increased brand support offset by efficiencies in supply 26.0% 26.0% 25.9% chain 25.6% 2020 2021 2022 2023 2024
Slide 26: Depreciation and Impairments
Depreciation and Impairments Decrease in percentage of sales over the last years Absolute in CHF million Ratio in % to sales 297 276 277 273 281 6.9% 6.0% 5.5% 5.4% 5.4% 2020 2021 2022 2023 2024
Slide 27: Operating Profit (EBIT)
Operating Profit (EBIT) EBIT-margin continues to improve by +60 bp in 2024 Absolute in CHF million Margin in % to sales 884 813 745 645 420 14.1% 15.0% 15.6% 16.2% 10.5% 2020 2021 2022 2023 2024
Slide 28: EBIT by Segment
EBIT-margin in % Absolute in CHF million Europe North America Rest of the World EBIT by 19.2% 19.3% Segment 15.0% 14.4% Continuous increase of 13.0% 11.8% profitability in North America Investment for future growth (brand, people) in Rest of the World 461 500 250 280 102 104 2023 2024 2023 2024 2023
Slide 29: EBITDA
EBITDA Achieving record levels Absolute in CHF million Margin in % to sales 1’181 1’018 1’094 921 696 20.1% 20.5% 21.0% 21.6% 17.4% 2020 2021 2022 2023 2024
Slide 30: Tax Rate
In % of income before taxes 23.6% Adjusted 21.1% 21.0% 21.0% 18.8% 8.9% one-off tax benefit Tax Rate Tax rate in line with the 5 year average 14.7% 2020 2021 2022 2023 2024
Slide 31: Net Income
Net Income Net Income up by +11.8% vs. 2023 (excluding 2023 one-off tax benefit) Absolute in CHF million Margin in % to sales 671 672 570 70* 491 601 320 11.5% 12.9% 12.3% 10.7% 8.0% 2020 2021 2022 2023 2024 * One-off tax benefit
Slide 32: Capital Expenditure
Absolute in CHF million Ratio in % to sales 314 302 249 241 230 Capital Expenditure Continued investments into growth and efficiency 6.2% 5.3% 5.8% 5.8% 4.6% 2020 2021 2022 2023 2024
Slide 33: Free Cash Flow
Free Cash Flow Strong Free Cash Flow development by good Net Working Capital management Absolute in CHF million Margin in % to sales 635 585 539 526 477 13.4% 12.8% 11.6% 10.6% 9.2% 2020 2021 2022 2023 2024
Slide 34: Non-diluted Earnings per Share
Absolute in CHF 2’889 2’917 301** 2’416 2’588 2’049 Non-diluted Earnings 1’333 per Share* Double digit increase of EPS compared to 2023 (excluding 2023 one-off tax benefit) * Equivalent to 10 PC 2020 2021 2022 2023 2024 ** One-off tax benefit
Slide 35: Net Financial Position
Net Financial Position EBITDA Decrease in Net Debt Position driven by strong Free Cash Flow ×0.75 Free cashflow = 635 Absolute in CHF million + -314 Shareholder return = 627 +949 -943 -322 -882 + -305 -114 +167 01/01/2024 Operating cash CAPEX Dividend Share buyback Capital increase Other 31/12/2024*
Slide 36: Equity Ratio
In % of total assets 57.2% 58.3% 55.4% 54.2% 52.8% Equity Ratio Balance sheet remains strong 2020 2021 2022 2023 2024
Slide 37: Shareholder Return
2020 2021 2022 2023 2024 Ordinary dividend 1’100 1’200 1’300 1’400 1’500* reg. (CHF) Shareholder Dividend yield reg. 1.2% 1.0% 1.4% 1.4% 1.5% Return Payout ratio 82.5% 59.3% 54.6% 49.2% 51.9% Increase in shareholder return continues Share buyback (CHF million) - 445 551 594 305 Market capitalization
Slide 38: Share price & Market Capitalization
Registered shares (at year-end in CHF) Market capitalization (CHF million) 122’200 102’000 100’000 95’000 88’400 Share price & Market 30,035 Capitalization 20,994 22,679 23,958 23,350 2020 2021 2022 2023 2024
Slide 39: Sustainability
04 Sustainability
Slide 40: Responsible cocoa sourcing: Strategic progress in 2024
+ Joined the International Cocoa Initiative (ICI) + Improved traceability systems Responsible cocoa sourcing: + Introduced Rainforest Alliance Certification in addition to our Farming Program Strategic progress in 2024 + Started design of a living income pilot program + Initiated an agroforestry pro
Slide 41: Farming Program highlights 2024
Farming Program highlights 2024 75 schools built or renovated CHF 33.6 million since the start of the Farming Program (2008) 84.2% invested in the responsible sourcing of cocoa in 2024 (+11.9pp) 11’700 of cocoa sourced individuals trained through the Farming in additional Income Generating Activitie
Slide 42: Our roadmap to net-zero
Our roadmap to net-zero Lindt & Sprüngli has science-based climate targets approved by the Science Based Targets initiative (SBTi), with the ultimate goal of net zero emissions by 2050. 2020 2024 2025 No deforestation across our primary deforestation-linked commodities 2030 Scope 3 Cocoa FLAG Other
Slide 43: Growth Agenda & Outlook
05 Growth Agenda & Outlook
Slide 44: Our strategy to enchant the world with chocolate
Our strategy to enchant the world with chocolate Where to play How to Win Expansion Consumer Centricity Innovation & Quality • Geographical: Leverage key • Focus on Indulgence and • Strengthen the core Markets, expand in Emerging Gifting for premium experience markets • Highest quality & best taste
Slide 45: Outlook
Financial Year Medium to → 2025 long term Outlook Ambition to grow faster than the market 7-9% 6-8% Cocoa price hikes requires Organic sales growth Expected sales growth price increase in 2025 per year Continued brand support to drive growth and household 20-40 bp 20-40 bp penetration Improvement of
Slide 46: The Highlight of the Year
lQiRSSIQI eo Qos LQ esol Ba LINDT & SPRUNGLI The Highlight of the Year
Slide 47: Q&A
x LINDT & SPRUNGLI &A
Slide 48: : LINDT = SPRUNGLI
: LINDT = SPRUNGLI Cha IN
Slide 49: 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
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