Lindt & Sprüngli reports 5,8 percent organic growth in 2008

In 2008, Chocoladefabriken Lindt & Sprüngli AG achieved sales of CHF 2.94 bn. This is equivalent to an increase of 5.8% in local currencies. As a result of the weakening of a number of currencies – above all the euro, pound sterling and the dollar currencies – against the Swiss franc, sales in the domestic currency finished at approximately the same level as in 2007.


The increase in sales was at the bottom end of the current – and publicized – long-term objective of 6 to 8% annually. Considered the market conditions, this result is encouraging. Double-digit growth was achieved in export markets overseas, in Canada, and in the Northern/Eastern regions of Europe, namely Scandinavia, Russia, Poland and Austria.


Mainly towards the end of last year, depressing reports from all over the world about the economic situation and consumer sentiment continued to pile up. Thousands of shop closures in the USA, the bankruptcy or insolvency problems of two major sales channels in the UK, the illiquidity of hundreds of privately owned confectioners and retail outlets in Italy, and the aggressive advances made by the two hard discounters in Germany where LINDT is not represented are examples of the kind of market conditions in which Lindt & Sprüngli products were successfully marketed last year.


The organic growth of 5.8% therefore represents a further strengthening of the brand s market position in most countries. In 2008, LINDT and GHIRARDELLI were once again the fastest growing brands in the USA, as they have been for several years in series. The company s own chain of retail outlets in the USA suffered from the tail-off in shoppers at the big malls, where many shops, cafés and restaurants were forced to close, effectively stifling any likelihood of a real Christmas spirit. By contrast, above average progress was registered with continued expansion in US wholesale distribution, which now extends all national and local retail chains. For fiscal year 2008, and as communicated in its long-term targets, Lindt & Sprüngli Group expects to achieve a 20 to 40 base points improvement in terms of EBIT margin.


The worldwide uncertainty prevailing in 2009 will probably be more challenging than at any other time in history. Currency volatility on an unprecedented scale; peaks in the price of commodities, due partly to speculation; subdued consumer sentiment resulting from the messages of gloom and doom in the business and financial worlds, together with a worsening of the situation on the labour market and increasing nervousness on the part of trading partners: these are the challenges Lindt & Sprüngli will be confronted with in the foreseeable future. The Group will be sticking to the strategy that has backed up its success in the past and aims to further strengthen its market position. Due to this solid and lasting foundation, Lindt & Sprüngli is confident to be among the winners of the next economic upturn.