Investing.com -- Shares in Swiss chocolate maker Lindt & Sprüngli fell 7% on Tuesday after the company cut its full-year organic sales growth forecast to 0%-2% from 4%-6%, citing weaker demand in Germany, Switzerland and Austria following price increases and an unusually hot summer.
The company said higher consumer price sensitivity had led to lower-than-expected orders, particularly in seasonal products, in the three markets.
Lindt maintained its 2026 target for a 20-40 basis point improvement in its EBIT margin from the previous year.
"Necessary price increases due to historically high cocoa prices in recent years, and subdued consumer sentiment led to weaker-than-expected order volumes in certain European markets, particularly in seasonal businesses," said Adalbert Lechner, Group CEO of Lindt & Sprüngli in a statement.
Performance was stronger in North America and Asia, Lindt said, providing some offset to weakness in its core European markets. Cocoa prices have eased from their peaks, and the company expects cost pressures to gradually normalize in the coming months.
Lindt said it expects positive volume growth in 2027, supported by changes to its pricing strategy, higher brand investment, new products and cost savings. Lower cocoa prices are also expected to support margins.
The company reiterated its medium- to long-term target of 6%-8% organic sales growth and annual EBIT margin expansion of 20-40 basis points from 2028 onwards.
Lindt reported sales of 5.92 billion Swiss francs in 2025. It will publish its 2026 net sales on Jan. 19, 2027.
Original Article
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