Net Sales 2005
Kilchberg, 24 January 2006 – In 2005, Chocoladefabriken Lindt & Sprüngli AGincreased Group sales by around CHF 250 million to CHF 2.247 billion(previous year, restated in accordance with IFRS: CHF 1.995 billion). Thisrepresents an increase of 12.6% over 2004. Organic growth in local currencyterms amounts to 11.4%, denoting that for the second year in succession,Lindt & Sprüngli has posted double-digit growth. This result was achieveddespite the ongoing sluggishness of the markets and extremely aggressivecompetitors.
Although the development of chocolate consumption varied from country tocountry, overall markets were less dynamic than in 2004. In importantmarkets like Germany and Switzerland, market research institutes actuallyreported a decline in consumption for the first nine month of 2005. It istherefore all the more encouraging that all Group companies contributed toLindt & Sprüngli's above-average growth. The rise in sales in the mostimportant product categories was also well above average. All-year-roundproducts and seasonal gift collections for Christmas and Easter, as well asmono pralinés and assorted pralinés, posted substantial gains in marketshare in various countries. The product ranges and activities after thesummer break were likewise very well received. The trade reacted extremelypositive to the Christmas range, which prompted Lindt & Sprüngli to furtherincrease its marketing investments towards the end of the year. This,again, will be reflected in market share.
Once more, the company's strict adherence to its declared strategy,management philosophy, and concentration on its core competences – namely,to continuously strengthen its present position as number one in thepremium chocolate sector – paid off. There is a clear trend in consumerbehavior: top-quality products boost customer loyalty, which is furthercultivated by innovations and new ideas. Lindt & Sprüngli's new productdevelopment is very much in line with constantly changing consumer needsand generates higher added value. This, in turn, allows for increasedmarketing investments and, at the same time, guarantees the trade aplatform for profitable growth.
As in previous years, Lindt & Sprüngli expects that the percentage increasein EBIT and net income will be slightly higher than the growth in sales,and that this should help ensure that long-term strategic goals are met.The complete financial statements will be published on 14 March 2006.