The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Lindt&Spruengli AG said its investments in the US market helped put sales of Russell Stover on track for their first annual rebound since the Swiss chocolate maker acquired the ailing brand five years ago.
Russell Stover sales grew in the first half, the Kilchberg-based company said. New product introductions and demand for the label’s sugar-free stevia line boosted total revenue, which rose 6.2 percent on an adjusted basis. Lindt shares rose as much as 2.5 percent.
The results may be a signal that the worst is over in the US as the company becomes better equipped to compete with rivals Hershey Co and Mars Inc. Lindt became the third-largest chocolate maker in that market when it bought Russell Stover in 2014. The purchase weighed on sales growth for years as Lindt weeded out less-profitable products.
Lindt reiterated its forecast for organic sales growth of 5 percent to 7 percent and a 0.2 to 0.4 percentage point improvement in its operating margin.