SWITZ: Lindt & Sprüngli posts drop in 2009 sales

By: just-food.com | 19 January 2010

Upmarket Swiss chocolate maker Lindt & Sprüngli booked a drop in sales for 2009 and said it expects operating profit to be at the lower end of its guidance.

The company revealed that 2009 sales hit CHF2.5bn (US$2.5bn), just below forecasts. This is equivalent to an organic growth of 2.3% in local currency terms.

Due to adverse exchange-rate factors, annual sales in Swiss francs decreased by 1.9%.

"In view of the challenging situation on the markets for premium and luxury products, this sales growth in local currency terms is a satisfactory result," the firm said.

Sales in the US, Canada and Australia showed "above average" development particularly in the second half of the year. In the US, Lindt and Ghirardelli eported further market share gains.

However, in most European countries, negative consumer sentiment, combined with "very cautious" ordering by the trade, brought only "modest" growth.

In its sales release today (19 January), Lindt added that it expects the "challenging" situation on the commodity markets to continue, particularly for cocoa prices, placing profit margins under pressure.

Operating profit (EBIT) at the end of 2009 is expected to be at the lower end of the group's range, announced last spring, of CHF260m - CHF280m.

Sectors: Confectionery