SWITZ: US closures sour Lindt H1
- H1 profits tumble on US closures
- Lindt unable to pass on cocoa costs
- Swiss franc weighs on turnover
Chocolate maker Lindt & Sprüngli has seen its half-year profits tumble on the back of rising commodity costs and charges from the closure of retail outlets in the US.
The Swiss firm today (25 August) posted net income of CHF2.7m (US$2.5m) for the six months to June, down over 88% on the year.
Opertaing profit slumped 94.3% to CHF1.9m. Stripping out one-off charges linked to the US closures and impairment costs in Italy, operating profit fell 28.3% to CHF24.1m.
Lindt blamed the "difficult global economic situation" for its inability to fully pass on higher cocoa prices to its customers.
The weakness of currencies against the Swiss franc weighed on turnover, which fell 5.4% to CHF979m. On a constant-currency basis, sales inched up 0.2%.
Click here for the full results from Lindt. Check back later for analysis and company comment on the performance.
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