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A-Brands

Lindt & Sprüngli Posts Double-Digit Sales Growth Despite COVID Concerns

Chocolate maker Lindt & Sprüngli has reported a 14.2% increase in group sales, to CHF 4.59 billion (€4.42 billion) in its financial year 2021, despite an 'economically challenging year' due to the continued COVID-19 pandemic.

Organic sales were up 13.3%, ahead of forecasts, with Lindt & Sprüngli saying that all regions contributed to its full-year performance, with the business gaining market share in all its key markets.

'Despite ongoing pandemic-related restrictions, the global chocolate markets reported overall good growth in 2021,' the company said in a statement.

'Once again, Lindt & Sprüngli, the world’s leading chocolate manufacturer in the premium segment, benefited from an above-average increase in demand for products of highest quality and was able to significantly increase sales in all countries and channels.'

Performance By Region

In its Europe division, organic sales were 13.8% higher, at CHF 2.33 billion, with Germany, Italy, the UK and Switzerland all seeing double-digit growth.

However, its company-owned store network faced temporary closures, it said, while there was also 'low customer frequency' in tourist areas. In Italy, the group recently announced the merging of its two subsidiaries.

In North America, organic sales were up 10.7% to CHF 1.69 billion, with the group saying that it grew 'faster than the overall market', while also increasing its share.

In its Rest of the World division, organic sales grew 19.7%, reaching CHF 0.57 billion, with Brazil, China, and Japan reporting 'particularly good growth' in the period. It noted that its Duty Free business remains below pre-pandemic levels, but has showed a 'significant recovery'.

Outlook For 2022

For the coming financial year, Lindt & Sprüngli said that it expects to achieve growth in line with its medium- to long-term target of between 5% and 7%, along with an operating margin of 15%.

It expects its operating margin to grow by between 20 basis points and 40 basis points in the following years, it added.

'As a result, Lindt & Sprüngli will continue to grow well above the overall market,' the company said.

'This will be possible thanks to a number of projects in the areas of geographic expansion, development of the growing online trade, the launch of new products, and the ongoing strengthening of the leader products Lindor and Excellence as well as seasonal business.'

© 2022 European Supermarket Magazine. Article by Stephen Wynne-Jones. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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