Lindt & Spruengli Reports Solid Second-Half 2016 Sales Recovery

Lindt & Spruengli reported a solid recovery in sales in the second half of 2016, when organic sales growth increased to an estimated 7.1%, up from 4.4% in the first half. Through both halves, sales were depressed by a weak North American chocolate market, coupled with portfolio rationalisation at newly acquired Russell Stover. Currencies contributed positively to sales in 2016, for the first time since 2012. We are not making any changes to our narrow moat rating or our CHF 59,000 fair value estimate.