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Investing.com -- Lindt CFO Martin Hug has expressed confidence that the Swiss chocolate maker will achieve its 2025 guidance of 9-11% organic sales growth and a 20-40 basis points improvement in EBIT margin.
The company has raised its top line guidance twice this year from its medium-term goal of 6-8%, driven by price increases implemented to counter rising cocoa costs.
Hug indicated that pricing would accelerate in the second half of the year compared to the first half’s 16% increase, though volume would likely deteriorate further from the 4% decline seen in H1.
Regional performance is expected to vary, with North America projected to show material acceleration after a subdued first half. Meanwhile, Europe is likely to experience organic deceleration, while business in other global markets should improve.
Looking ahead to 2026, Hug expressed confidence in reaching the company’s 6-8% growth target, though he noted it was premature to specify the split between price and volume components. He added that pricing actions from 2025 would continue to impact 2026 results.
For the current year, Lindt’s free cash flow margin is expected to fall below 10% due to the impact of higher cocoa prices on inventory.
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