By Brenna Hughes Neghaiwi
ZURICH (Reuters) - Lindt & Spruengli (S:LISN) (S:LISP) posted better than expected first-half profits on Tuesday, boosted by its acquisition of U.S. rival Russell Stover and sending shares in the Swiss chocolate maker to record highs.
While chocolate makers continue to grapple with record high cocoa and nut prices, the Kilchberg, Switzerland-based company was helped by its biggest acquisition, which puts it third in the U.S. market, and by its focus on premium chocolates.
The maker of Lindor chocolate balls and gold-foil wrapped Easter bunnies said sales including Russell Stover rose 69.2 percent in the North America (NAFTA) segment. Excluding Russell Stover, NAFTA sales rose 10.3 percent.
Net profit rose 15.6 percent from a year earlier to 65 million Swiss francs ($66.4 million), above a 57.8 million franc estimate in a Reuters poll. The first half is typically the weaker half of the year for a company that generates most of its sales leading up to Christmas.
Lindt's participation shares rose 1.5 percent by 0730 GMT to trade at 5,670 francs while its ordinary shares were 0.9 percent higher at 67,070 francs, both record highs.
The chocolate maker confirmed its forecast for 6-8 percent underlying sales growth this year and said it would again target a 20-40 basis point improvement in its earnings before interest and tax margin once Russell Stover is integrated.
Lindt said the strong Swiss franc had hit sales in the first half to the tune of 7.5 percent.
Last month, Lindt said underlying sales rose 17.4 percent to 1.4 billion francs in the six months to June. Solid growth came from its core European markets, North America, emerging markets and its "Global Retail" store market, despite challenges from a strong Swiss franc and record high raw materials prices.
(The story has been refiled to fix typo in headline)