Lindt & Sprüngli: Good Prospects, Rich Valuation (OTCMKTS:CHLSY)

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Different Lindt Lindor chocolate truffles

Ekaterina79

2023 is looking to be a solid year for Chocoladefabriken Lindt & Sprüngli AG (OTCPK:CHLSY) (OTCPK:LDSVF). However, near-term prospects are challenging due to rising cocoa costs and Switzerland’s minimum taxation. The company could overcome these challenges medium term through

Revenue growth YoY%

Around 7.4% annually for the next three years

Terminal growth rate %

2%

Net margin %

2023 = around 11.7% based on management’s guidance of 30-50 basis points (2022 net margin = 11.4%).

2024 = dropping to 10% and then gradually improving at 20 basis points annually for the next three years

Depreciation

5%-4.5% of revenues

CAPEX

Between CHF 250 – CHF300 medium term based on management guidance

Discount rate %

7%

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