Lindt’s Full-Year 2022 Sales Track Expectations, First Signs of Weakness in Europe; Shares Expensive

Lindt & Spruengli, or Lindt, reported full-year 2022 sales in line with our expectations, with organic sales growth of 10.8%—slightly above the upper end of its guidance of 8%-10%. The strength of the Swiss franc relative to the euro and the pound sterling once again hurt reported sales growth (negative 2.4% for the full year). Lindt reaffirmed its EBIT margin guidance of about 15% despite broad inflationary pressures in the second half. Consequently, Lindt stands ready to report full-year 2022 EBIT of about CHF 750 million. Our long-term expectations for the wide-moat stock remain unchanged as does our fair value estimate of CHF 82,000. Lindt shares continue to screen expensively, trading at a 2023 P/E of 39 times and a price/fair value estimate of 1.21. Lindt will deliver its 2022 result in full on March 7, 2023.