Lindt & Sprüngli reports 3% decline in annual sales

Swiss chocolate and confectionery company Chocoladefabriken Lindt & Sprüngli reported that its annual consolidated sales fell 3% to CHF2.49bn ($2.61m) for the year 2011, compared to CHF2.58bn ($2.70m) in 2010, due to a challenging economic environment in Southern Europe.

The organic sales growth was 6%, down from 7.3% year-on-year, as the demand for its products declined considerably in Southern Europe.

The company reported a constant increase in market share in the domestic Swiss market month-on-month, with its praline segment accounting for the highest market share.

Lindt & Sprüngli reported strong sales in its core markets of the US, France and Germany, with brands such as Lindt and Ghirardelli showing the highest growth in the premium chocolate segment.

The market growth in Hong Kong was positive, which according to the company builds a strong foundation for further expansion into the Chinese market.

However, market growth in Southern European countries such as Italy, Spain and partly in Australia dropped due to the tough economic environment, as well as extremely high temperatures in spring and late autumn.

The international retail division accounted for 10% of the company’s growth during the year and has promising potential for the future, the company said.

During the year, the company made investments at all its production sites and launched new projects, including a large-scale expansion of its plant and construction of a logistics centre in Aachen, Germany, as well as the opening of a subsidiary in Cape Town, South Africa.

Image: Lindt & Sprüngli’s praline segment accounted for the hights market share in 2011. Image courtesy of Umberto Salvagnin.