Another record year for Lindt & Sprüngli AG

Chocoladefabriken Lindt & Sprüngli AG, Zürich, reports record sales once again in 2007. Organic growth amounts to 13.9% in Swiss francs and 11.8% in local currencies, which represents another year of double-digit growth. Sales are at CHF 2.946 bn (previous year CH 2.586 bn). The weakness in the US dollar was more than offset by the strong euro. This excellent result led to further increases in market share in all markets and segments relevant to Lindt & Sprüngli.


The world economy continued to develop encouragingly in 2007, which had a positive impact on consumer sentiment. Nonetheless, the chocolate segment remained stiffly competitive, while pro capita chocolate consumption in general – particularly in the important markets of Western Europe and the USA – stagnated, and the total value of the markets showed minimal growth.
All Group companies outperformed their own particular markets. In the increasingly important North American market the gain in market shares for both brands LINDT and GHIRARDELLI was significant. Lindt & Sprüngli unequivocally demonstrated that it has the ability to exploit this enormous market potential even more fully in the future. This is particularly encouraging because the competitors in the world s biggest chocolate market have launched an unprecedented wealth of new products in their efforts to penetrate the expanding premium segment.


Against this backdrop of ever-stiffer competition – which is increasingly being fought out through price – LINDT s clear positioning in the premium segment enabled it to remain distanced from this and at the same time to strengthen its image. In the growing markets of Eastern Europe and Asia, the Group is continuously developing its presence.


LINDT s success was due equally to all-year-round and seasonal business. The driving force behind the Group s impressive performance remains the high frequency with which it introduces new products combined with its focus on established lines that have proven successful. In the increasingly popular dark chocolate segment, which requires profound know-how at production level, LINDT s Maîtres Chocolatiers continued to set new standards in creativity and delighted consumers with innovative and exotic recipes.


In order to continue meeting the rising demand for LINDT products in the future, the Group made substantial investments in expanding capacity. This means the Group is excellently positioned to achieve its long-term strategic growth targets. Thanks to purchasing policy, ongoing investments in productivity and excellent cost management, the substantial increases during 2007 in raw materials prices (cocoa, cocoa butter, milk and nuts) as well as energy and transportation costs will have no negative impact on the year end result. Lindt & Sprüngli therefore expects to meet its strategic goal by improving the operating profit (EBIT) by 20 to 40 base points compared with the previous year.