Shares of Swiss chocolate maker Lindt & Sprüngli (SIX: LISP) surged 6% in European trading on Tuesday after the company posted a slightly better-than-expected full-year operating profit, despite soaring cocoa costs.
\ud83d\udcca EBIT: 884M CHF ($987M) (vs. 880M CHF expected)
\ud83d\udcca EBIT Margin: 16.2% (exceeding 16.0% guidance)
\ud83d\udcca Free Cash Flow (FCF): 635M CHF (+33% YoY, 11.6% FCF margin)
The strong cash flow performance was attributed to efficient working capital management, according to Barclays analysts.
Despite cocoa prices reaching £6,908 ($8,734.5) per metric ton, Lindt offset cost pressures through:
\u2705 Tight cost control & efficiency gains
\u2705 Process optimization
\u2705 Strategic price increases
As premium chocolate demand grows, Lindt remains well-positioned to weather 2025’s expected price hikes in raw materials.
\ud83d\udd39 Vontobel Analyst Jean-Philippe Bertschy: “Lindt continues to navigate this unprecedented cocoa bean price environment unabated, breaking record after record.”
\ud83d\udd39 Barclays Analysts: “Higher cocoa prices are driving premiumisation, which is good news for Lindt’s portfolio. We continue to believe Lindt is the safe haven in the space.”
Lindt’s strong cash flow, margin expansion, and premium pricing power make it a standout in the chocolate industry, even as cocoa costs surge.
For further insights into Lindt’s financial performance, explore:
Bottom Line: Lindt’s ability to pass on costs and maintain premium positioning makes it a resilient investment in a volatile commodities market.
