Chocoladefabriken Lindt & Sprüngli AG announced earnings results for the half year of 2018. EBITDA, EBIT and net income, all increased at higher rates and sales at levels between 10.8% at EBITDA and up to 12.7% at net income level. The improved EBIT margin of 20 basis points in the group has mainly been driven by the overall lower material expense ratio and lower personnel expenses, which will be explained in one of the next charts. EBITDA margin improved by a strong 30 basis points, coming from the higher EBITDA margin -- EBIT margin and higher depreciation. The net debt position is CHF 50 million higher than at the year-end 2017, which is also coming from the share buyback program. Compared to half year 2017, net debt position is improved by around CHF 140 million despite the share buyback program. EBIT figure increased by an excellent 11.5% versus previous year, reaching CHF 117 million or 7% of sales, which is an improvement of 20 basis points compared to one year ago. The EBIT figure includes a recurring amortization charge of CHF 4 million for the half year. The net financial expenses came in at CHF 6.1 million, which is an increase versus last year. The main driver, higher hedge cost for the subsidiary financing as well as negative interest -- the negative interest environment. The higher hedge cost is coming from the bigger currency rate differential between Swiss francs and other currencies. The absolute level of net income is CHF 86 million, an increase of 12.7% versus prior year, and a 30 basis points margin increase over last year. For the six months, CapEx is at CHF 190 million, which is in line with expectations but higher than last year.

The company expects expect a tax rate of between 22.0% and 22.5% for this year. It still expects CapEx to reach around CHF 250 million for the full year, which is about CHF 70 million above 2017.