Lindt claims partial immunity from economic downturn as profits surge

 Breaking News
  • 2 Sisters and Standards in Poultry Processing Report Published The Environment, Foods and Rural Affairs Committee in the UK has published its report into 2 Sisters Food Group and Standards in Poultry Processing. The Committee launched an inquiry into 2 Sisters and poultry standards following the undercover footage released by The Guardian and ITN. The evidence sessions looked at the issues raised at the 2 [...]...
  • ADM Wins ‘Most Innovative Food Ingredient’ at Gulfood Excellence Awards Archer Daniels Midland Company has been awarded ‘most innovative food ingredient’ for its natural sweetening solution, Fruit Up® Fiber, at this year’s Gulfood Manufacturing Industry Excellence Awards. The awards recognize best practices and innovation within the food manufacturing industry value chain. Entries were judged on the additional value the innovations brought to developers, as well as [...]...
  • Bayn Europe Enters China Sugar Reduction Market Bayn Europe has signed a strategic framework agreement with Kong Wua Group in China, outlining the establishment of a R&D center for sugar reduction and production of sugar replacer solutions. Through the agreement, Bayn and Kong Wua will bring sugar replacer solution to the market to help tackle the sugar over-consumption social problems. “It is important [...]...
  • It’s Time to End Food Waste – White Paper Among the most interesting topics in the publication ‘It’s time to end food waste’ is a closer look at the psychology of food waste by Nina Waldhauer at the University of Wageningen. Waldhauer explains how “(…) the food sector business can create opportunities for reducing consumer-related food waste. It can be done in ways that acknowledge consumer´s goal [...]...
  • Orkla Sells K-Salat to Stryhns Orkla Foods Danmark has agreed to sell its K-Salat business to Stryhns, which is part of the Norwegian Agra group. The purpose of the sale is to concentrate Orkla’s activities on fewer categories. K-Salat has a product portfolio of salad spreads, mayonnaise, remoulade, dressings and potato salads in Denmark. Under the agreement, Stryhns will take over [...]...

Lindt claims partial immunity from economic downturn as profits surge

March 17
11:04 2013

Lindt & Sprüngli’s operating profit rose 10.3% in 2012 and the company has declared itself “partially unaffected”  by the continuing economic downturn as consumers still seek quality chocolate in tough times.

The company released its full-year 2012 results today and declared sales of CHF 2.67bn ($2.83bn), up 7.3% on last year, and a 10.3% rise in operating profit (EBIT) to CHF 362.5m ($382.9).

Lindt: High quality choc excels even in hard times

“Our experience as a premium chocolate manufacturer confirms that Lindt quality chocolate is relatively unaffected by prevailing economic sentiment and that consumers are reluctant to abstain from high product quality and an excellent taste experience, even in tough times,”  said Lindt in a statement.

The company reported market share gains in every country except Italy and Spain, which have been hard hit by the economic crisis. The company warned that rising unemployment might undermine consumer mood in Southern Europe.

Market performance

Ernst Tanner, Lindt chairman and CEO, said: “The global market for chocolate is scarcely growing today. Despite this environment, our key European sales markets, led by Germany, France and England, reported a particularly favorable trend.”

The firm’s sales grew 2.3% in its Swiss domestic market, and it is expecting the weakening of the Swiss franc to have a favorable impact on Swiss exports.

North America reported double digit growth through the Lindt and Ghirardelli brands. Lindt said in its annual report that the US was now its “biggest single market”.  In 1992, over 80% of sales were generated in Switzerland, Germany and France.

Emerging markets: Russia and China

For 2013, the company has forecast organic growth of 6 to 8% and an increase in its operating profit margin by 20 to 40 basis points.

“Here, not only the key markets in Europe and North America but also the new emerging markets in Russia, Asia and South America will play a role,”  said the firm.

The company hopes to establish Lindt as a premium chocolate brand in emerging markets after establishing subsidiaries in Moscow and Shanghai last year.

Lindt said in its annual report that its global retail organization set up in 2009 was helping it build brand awareness in emerging markets.

$265m on charitable projects

Lindt also announced that CHF 250m ($265m) would be spent on two charitable foundations. The Lindt & Sprüngli Cocoa Foundation will concentrate on sustainable cocoa and Lindt & Sprüngli Chocolate Center will focus on research and training. Lindt sources cocoa from Ghana, Ecuador and Madagascar.

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 28, 2017Fi Europe
  • December 4, 2017Plastics and Paper in Contact with Foodstuffs 2017
  • January 8, 2018RAI Exhibition
  • January 16, 2018Sival Plant Production Trade Show
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here