Contacter Bordier
Disclaimer
Informations Légales
Plan du site
Rechercher ...
...........................
DE
ES
Lindt is a safe investment in the Food sector (Minus code). Its premium position and robust fundamentals enabled the group to weather the recession. The trend towards high quality in the chocolate sector, increased visibility of economic recovery (USA and emerging markets) and a new year which is likely to bring higher volumes are all factors which should weigh in favour of the share.
Lindt is a sound investment in the food sector (code minus) with multiple strengths. The company’s upscale market position and solid fundamentals helped it weather the recession. Ongoing productivity increases and consumer trends favouring upscale producers in the chocolate sector (Europe/USA) give Lindt an attractive outlook in a climate of economic recovery.
Because of the seasonal effect (just 35% of sales and 10% of EBIT), the 1st half is not representative and the result announcements are not very significant. Factors to be noted: exceptional costs (CHF 22 million) linked to actions undertaken in Italy and the USA to dynamize the group’s industrial and commercial efficiency and the reassuring confirmation of 2009 targets: organic growth between 2% and 5% and EBIT between CHF 260 million and CHF 280 million after exceptional costs. PLUS code confirmed.
Alongside Danone and Nestlé, shares recommended by Bordier & Cie in the Food sector (neutral code), we regard Lindt as a safe investment with many qualities. Its defensive characteristics (premium position) and robust fundamentals enable the group to perform well in a challenging environment. The 2008 results confirm this fact, while the efforts implemented in 2009 pave the way for the future.
Publication of 2008 sales figures showed organic growth slowing to +5.8%, below expectations (8%). Not completely immune, Lindt was adversely affected by the sharp deterioration of consumer spending on all continents in Q4. Reassuringly, the levers at its disposal (price, productivity, marketing) enable the group to confirm the improvement of its margin (+20pb) in 2008. The tough economic environment for 2009 will be offset by currency effects and greatly reduced raw material costs. Plus code confirmed.
Alongside Danone and Nestlé, which are also shares recommended by Bordier & Cie in the Food & Beverages sector (Plus code), Lindt is a safe investment with many qualities. A growth stock with solid fundamentals, Lindt also has defensive virtues (premium position) which enable it to perform well in a difficult environment (raw materials/economic slowdown).
Half-yearly results for 2008 are better than expected albeit not very meaningful, with the first half-year representing only 38% of annual turnover and 10% of Ebit. Lindt had prepared the market for a slowdown in its organic growth (+7.9% compared to 13.5% in the first half of 2007), which nonetheless remains in line with the medium-term target (+6-8%). The improvement in EBIT (+11.6% to CHF1.18 billion) is a pleasant surprise in a difficult context (European volumes, soaring price of milk and cocoa). Confidence is reiterated in management, which forecasts organic growth of between 8% and 10% in 2008 (second quarter price rises achieving full effect in the second half-year) and an improvement in the margin (+20pb).
Results for 2007 are good (EBIT +18% to 351 million CHF, net profit +20% to 251 million CHF). The margin improvement (+40pb to 11.9%) falls within the upper target range (+20-40 bp) despite the rising price of cocoa. New products, upmarket strategy and gain of US market shares have contributed to this performance. The dividend is to be increased from 20% to 330 CHF. We are confident over the prospects for 2008: higher raw material costs will be rolled over to the selling prices. PLUS code confirmed.
The sales growth announced by Lindt for 2007 (+14% to 2.95 billion CHF) was perfectly in line with the consensus. The double digit organic growth (+11.9%) for the 4th year in a row deserves a special mention. Demand for luxury chocolate in the USA remains high. Reassuring facts: Lindt confirmed the improvement of its EBIT margin (+20-40bp) in 2007, together with its long-term organic growth objective (6%-8%). The rise in material costs has now been rolled over to selling prices. We are therefore confident of the prospects in 2008.
In line with the new sectoral allocation adopted by Bordier & Cie (Plus code for Food & Beverages), we regard Lindt as a safe investment with many qualities. A choice target in this segment and a high growth share with excellent prospects, Lindt has defensive virtues (Beta: 0.8) against financial market/economic risks.
version française