Lindt Plans $820 Million Share Buyback Amid Upbeat Chocolate Sales Outlook
(Bloomberg) -- Lindt & Spruengli AG plans a 750 million-franc ($820 million) share buyback program as the maker of Lindor chocolate balls forecast a rebound in 2021, helped by improving consumption and e-commerce.
Sales should rise 6% to 8% on an organic basis this year, later returning to the company’s mid-to-long-term target of 5% to 7% annual growth, the Swiss company said Tuesday. The stock rose as much as 3.6%.
The chocolatier has been expanding online sales to adapt to the pandemic, and e-commerce revenue doubled in 2020 to about 5% of total sales. Lindt’s market share expanded in Europe and North America last year, boosted by Russell Stover’s sugar-free offerings and demand for premium chocolate and baking products.
The buyback will start in June and run through December 2022, Lindt said. The stock has dropped about 7% this year.
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