Lindt & Sprüngli reports double-digit sales growth

 

According to the press release, Lindt & Sprüngli benefited from an above-average development of the premium segment in which the company holds a global leading position in. The business segment of the own shop network Global Retail recovered with double-digit growth compared to a very weak previous year. However, due to the ongoing temporary local lockdowns and thus lower consumer frequency, sales were lower compared to 2019. The Duty Free business was still unable to match the results of the pre-pandemic years due to the ongoing restrictions in global air travel.

Lindt & Sprüngli was able to meet the increased global demand for high-quality chocolate products with the key franchises Lindor and Excellence. Both product lines were again main sales drivers in the first half of the year and recorded solid growth. It is also particularly pleasing that the important Easter business, recovered significantly and even exceeded expectations. In addition, the online business doubled its sales.

The company gained market shares in all strategically important markets and recorded double-digit sales growth in all three regions Europe, North America, and Rest of World. Despite the persisting numerous constraints and their effect on the economy, the sales contributions of the important chocolate markets Germany, France, UK, and Italy are particularly noteworthy.  Furthermore, Lindt & Sprüngli Italy was able to acquire and integrate the long-standing partner for Lindt retail shops at the beginning of the year. In the Swiss home market, the strong presence of the Lindt brand was expanded in the spring through a new retail partnership with Migros, one of the country’s largest retailers.

During this period, Lindt & Sprüngli has succeeded in securing supplies to production sites as well as to trade partners at all times. Thanks to a forward-looking purchasing strategy, costs for cocoa products were kept stable despite continued high price volatility in the first half of the year. In contrast, prices for the raw materials sugar and milk powder as well as for packaging materials recorded demand-related price increases. To ensure sales growth, Lindt & Sprüngli continued to maintain a high level of investments in all production sites also in the first half of 2021. Worth mentioning is the decision to further expand the cocoa liquor plant in Olten, Switzerland, to ensure the long-term supply of cocoa liquor to the European plants. Further major investments were made for capacity expansion at the production sites in Germany and at the US site in Stratham for pralines production lines.