Lindt & Sprüngli growing faster than the overall chocolate market

Lindt & Sprüngli’s Group sales amounted to CHF 4.313 bn, equivalent to a 5.5% increase in Swiss francs. The currency environment in 2018 was again volatile. Thus, consolidated results in Swiss Francs show a slightly positive currency effect, mainly due to a stronger euro. The organic sales growth of the Lindt & Sprüngli Group was 5.1% and therefore within the target range set for the financial year.

According to the company, the market environment remained very challenging. Chocolate markets are saturated in Europe and the USA, while mounting price pressure is transforming the retail landscape. Despite this, the premium chocolate market as a whole continues to grow and support the Group’s positioning as a global premium manufacturer – a trend that Lindt & Sprüngli can certainly benefit from.

Lindt & Sprüngli achieved solid organic growth of 5.6% in Europe. European chocolate markets are mainly characterized by flat or even negative growth rates. It is therefore even more impressive that Lindt & Sprüngli managed to expand its market shares in all countries and to grow faster than the market average. Sales growth was particularly strong in the United Kingdom, Germany, Austria and Spain, while all the Eastern European subsidiaries even reported double-digit growth.

In the NAFTA region, where markets are exposed to flat growth and price pressure, organic sales growth amounted to 2.8%. One highlight in the region was the outstanding double-digit growth achieved by Lindt & Sprüngli in Canada. Lindt USA and Ghirardelli also reported sales growth and outperformed the overall market. There was a slight decline in Russell Stover’s business. The “Rest of the World” once again boosted sales by 10.3% in the 2018 financial year and is becoming increasingly important for the Group. The markets of Japan, South Africa, Brazil and China all managed to achieve double-digit growth and hold substantial growth potential for the future.

The Group’s operating margin in the financial year 2018 is expected to increase within the medium to long-term strategic target range. Supported by stronger growth in the NAFTA region, Lindt & Sprüngli anticipates sales growth of 5-7% in the mid- to long term and a steady improvement in the operating margin of 20-40 basis points.