Lindt raises profits on consumer demand

Swiss chocolate company Lindt & Spruengli notes in its latest financial report that strong demand has allowed it to raise its own prices. It reports profits up by almost a third and maintained its sales growth outlook for the year.

“Particularly good progress was made in the important main European markets of Germany, France, and Italy as well as by Lindt and Ghirardelli in North America,” the company says.

It adds that it has increased prices in some markets and will not do aggressive promotions. The increased costs of raw materials are expected to remain extremely volatile on a high level but it notes that it is confident it will further gain market share and expand its business in growth markets. It is forecasting 6-8% underlying sales growth this year and an increase in the operating profit margin of 20-40 basis points.

Net profit rose 29 percent to 32.1 million Swiss francs  in the first half. Sales growth in local currencies slowed to 6.1%, down from a strong 9.2% at the same period last year, while sales in Swiss francs fell 4.7% to 1 billion francs due to the record-high currency.