Chocoladefabriken Lindt & Sprüngli AG

Total sales were CHF 2.33 billion in H1 2026, down 0.99% in Swiss francs due to currency, while organic sales grew 4.3%, within the company’s March guidance of 4%-6%. EBIT was CHF 260 million with an 11.2% margin, up 20 bps year on year, and net income was CHF 192 million with an 8.2% margin. Free cash flow was CHF 61 million, or 2.6% of sales, versus -3.4% in H1 2025. Net debt rose to CHF 1.6 billion from CHF 1.1 billion at year-end 2025, mainly due to CHF 414 million of dividends and CHF 100 million of share buybacks. For H2, management expects flat group volumes and still slightly positive net pricing, with full-year organic sales still expected at 4%-6% and EBIT margin up 20-40 bps; medium term, they reiterated 6%-8% average organic growth and 20-40 bps annual EBIT margin expansion.

Adalbert Lechner said the company is at an “important turning point” as pricing pressure across the category begins to normalize and consumers adjust to higher price levels. He emphasized a plan to restore volume growth through selective price reductions, smaller packs, more targeted promotions, stronger brand investment, and innovation such as Lindt Choco Wafer and the Dubai Style platform. His tone was confident but cautious, stressing that 2027 guidance is too early and that the near-term recovery depends on how quickly consumers respond to pricing changes.

Martin Hug framed H1 as a solid start despite a difficult environment of higher cocoa costs, weaker volumes, and currency headwinds. He cited 35.5% material costs as a share of sales, up 220 bps year on year, but said full-year material cost ratio should be in line with 2025 as cocoa eases in H2; personnel expenses improved by 100 bps of sales, operating expenses fell by 130 bps, and capex was CHF 154 million, CHF 16 million lower than 2025. He also highlighted that H1 free cash flow improved by CHF 141 million versus 2025, while net debt of CHF 1.6 billion reflected dividends and buybacks.

Analysts pressed management on whether Europe can turn positive, how fast pricing will fade, and whether the 6%-8% medium-term growth target is realistic. Management said group volumes should be flat in H2, but Europe should improve materially thanks to price-pack changes, easier comps, and resolved retailer issues in France and Switzerland; North America and rest of world may moderate from very strong H1 growth. On pricing, management said net pricing should still be slightly positive in H2, but they do not expect to raise prices in 2027 and instead may make further selective adjustments while using lower cocoa to regain volume.