Covid hits Lindt chocolate
Sales down to 4 billion francs in 2020
Swiss chocolate manufacturer Lindt & Sprungli reported a drop of more than 10% in its turnover in 2020 due to lockdowns and to health crisis, despite a sharp increase in sales of chocolate bars and in some markets and online sales doubled to represent about 5% of the total. In the last year, its sales amounted to 4 billion Swiss francs (3.7 billion euros), down 6.1% net of currency effects compared to the previous year.
Growth was seen in major European markets including Germany, the UK and Spain, as well as major emerging Asian markets, China and Japan. Lindt has confirmed an Ebit margin of around 10% in 2020 and which will return to around 15% in 2022, assuming a significant improvement in the situation relating to Covid-19. The company also confirmed its current target of organic medium- and long-term sales growth of 5-7% per year.
After the shock of the first measures to combat the pandemic that coincided with the Easter holidays, the chocolate market has gradually recovered, explains the Swiss group, which has benefited from the demand for products consumed at home. "The Excellence tablet line has seen double-digit sales growth", said. However, the Swiss Group has suffered the repercussions of the closures and, therefore, of the decline in visitors to its shops and bars, the collapse of tourism that has had repercussions on duty-free shops and the drop in demand in its shops.
EFA News - European Food Agency