Chocolate manufacturer Lindt & Sprüngli's growth slows down

Swiss chocolate manufacturer Lindt & Sprüngli‘s growth slowed down in 2016. Despite a decreased demand for candy, it still outgrew the rest of the market by far.

Smaller American market

In 2016, Lindt’s total turnover grew 6.8 % to 3.9 billion Swiss francs (3.64 billion euro), down from a 7.9 % growth in 2015. Organically, it was a 6 % growth in 2016, once again down from the year before, when it achieved a 7.1 % organic growth. 

Despite the slightly weaker growth, the company expressed its satisfaction, pointing out difficult market conditions and stagnant (or even weaker) sales for chocolate products in general.

Lindt’s European activities performed best, with a 7.4 % organic growth, excluding exchange rate fluctuations. Germany and the United Kingdom were the top performers in this region, with an increased growth pace and double-digit turnover growth.

North American turnover only grew 3.4 % but considering how the overall American market became smaller in 2016, Lindt should be pleased with its performance here.

Goal: surpass Godiva

Its operational profit grew 8.4 % to 562.5 million Swiss francs (524.7 million euro), which was just below analysts’ expectations.

Lindt’s goal to surpass Belgian Godiva‘s store network, which stood at 601 last year, by 2020 came a bit closer to being realized. It is currently trailing the luxury chocolate market leader, but added another 60 stores in 2016, which means it now has 370 stores worldwide.