Lindt & Sprüngli continues to outperform the overall chocolate market

The currency situation has improved slightly during the first six months of the current financial year. In particular, both the Euro and the US-Dollar have strengthened a little compared to the previous year. As a result, for the first time in a while, sales growth in Swiss francs of + 6.6% was higher than the increase in local currencies, which was for the Group + 4.4%. Excluding Russell Stover and the effects of the ongoing portfolio adjustments, Lindt & Sprüngli achieved organic growth of + 6.6%. This represents an acceleration in growth compared to the second half of 2015.

The key markets for chocolate, Switzerland and Europe, are largely saturated. In Switzerland, the home market is additionally suffering from the continuing trend for Swiss consumers to shop in neighboring Europe and from increasing pressure from hard discounters on the company’s trade partners. Nevertheless, Lindt & Sprüngli holds on to its well-proven selective distribution strategy and achieved slight growth thanks to targeted marketing activities and excellent relations with the trade.

In Europe, the German and French subsidiaries reported very good results. Particularly worth mentioning is the impressive double-digit growth that was achieved by the UK subsidiary. Smaller European subsidiaries such as the Nordics, Russia, the Czech Republic and Poland were also able to report excellent double-digit growth. Overall, the organic growth achieved in Lindt & Sprüngli’s “Europe” region was therefore above-average, with an increase of + 5.7% to CHF 738.5 m. The “NAFTA” region reported modest organic growth of + 0.8%, with sales of CHF 569.1 m. Excluding Russell Stover, the NAFTA region achieved sales growth of + 6.6%. Activities in the “Rest of the World” segment are bearing fruit. Overall, this segment achieved organic sales growth of + 10.2% with sales of CHF 193.9 m.