Swiss chocolatier Lindt & Sprüngli has seen sales drop in what it described as a “very challenging market environment”, but reaffirmed its profit guidance.
In a sales report for 2011 released today (16 January,) the company announced consolidated sales of CHF2.49bn, down from CHF2.58bn in 2010.
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Despite the drop, Lindt says it made “significant” market share gains and claimed its growth rate outstripped that of the chocolate market as a whole. It hailed an “impressive presence” at point of sale and growth in Switzerland, the US, France and Germany. It also announced “pleasing” developments in Hong Kong which will “build a sound foundation for the further development of the Chinese market”.
However, the company announced a “massive” negative currency influence of 9.5%. The might of the Swiss franc throughout 2011 hit its duty-free and export markets, the company said.
Lindt also said market growth in Italy, Spain and Australia slowed, which it put down to wider macroeconomic concerns and high temperatures lasting into late autumn.
It will announce full-year results in March and expects operating profit to rise at the upper end of the 20 to 40 basis points range announced last March.
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