Lindt & Sprüngli: strong organic growth and market share gains

Lindt & Sprüngli is continuing its long-term drive for growth and strongly outperformed the trend of the overall chocolate markets yet again in 2013. This brought corresponding gains of market shares in all important countries and product categories as well as in the seasonal business. The above-average organic growth is achieved largely by higher volumes. Constantly rising prices for relevant raw materials, continuing tough price competition, and sustained economic weakness in the South European countries, were the biggest challenges in the past financial year.

Thanks to the extensive use of a multitude of marketing activities, many innovative new launches, an uncompromising commitment to premium quality and effective cost management, the Group was able to achieve strong gains in an economic environment which remained relatively sluggish; new market shares were won everywhere. Growth is based primarily on higher volumes, innovations and an optimized product mix. Group sales were also boosted by the all-round success of the new lifestyle product range HELLO.

The organic growth of the Group in local currencies amounted to 8.6%, exceeding the long-term strategic growth target of 6-8 %. Group sales in Swiss francs rose by 8.0% to CHF 2.883 bn. The somewhat weaker parities of a number of currencies (USD, CAD, AUD, GBP) were not entirely offset by the somewhat higher exchange rate of the euro, thus affecting consolidated sales expressed in Swiss francs by approximately CHF 20 m. Once more, the Swiss subsidiary stepped up its already record market shares in the tablet and pralinés segment, thanks to good sales growth in the domestic market. Double-digit growth rates were achieved in the export business.

On the largely saturated main European markets such as Germany and France, Lindt & Sprüngli again reported sales growth well above the market average, further consolidating LINDT’s leading position. Growth in England reached double-digit rates. In Italy, LINDT sales were slightly higher and market shares could be gained despite the declining overall chocolate market. Business in North America (USA and Canada), the world’s biggest chocolate market which makes the largest contribution to Group sales, remained on a successful track with the LINDT and GHIRARDELLI brands, and reported double-digit growth once again. The recently incorporated subsidiaries in the developing markets Japan, China and South Africa also showed a positive performance.

www.lindt.com