Sweet 2023 for Lindt as volumes resist price hikes

Premium Swiss chocolate maker Lindt & Sprungli said Tuesday it had a better-than-expected 2023 as sales rose despite it passing rising cocoa costs onto consumers.

The company, known for its Lindor pralines and golden chocolate Easter bunnies, said sales rose 4.6 percent to a record 5.2 billion Swiss francs ($6.0 billion).

ALSO READ: Chocolate wars as Italian artisans battle Swiss giant Lindt

Sales would have risen even more without the strong Swiss franc. The company calculated sales grew 10.3 percent after stripping out currency effects, better than its 7-9 percent target.

Analysts surveyed by Swiss financial news service AWP had forecast 9.2 percent sales growth to 5.1 billion Swiss francs.

The firm is scheduled to release complete 2023 results on March 5 but said it expects an operating profit margin of 15.5 percent, up from 15 percent in 2022. A Swiss tax change would also provide a boost to the result, it said.

The firm said the rise in sales was due primarily to being able to pass on the rise in raw material costs, particularly that of cocoa which struck new records last year, while volumes held up despite an overall fall in the global market marked by depressed consumer sentiment in many countries.

“It shows that customers remain loyal to Lindt & Sprungli despite price increases,” the company said in a statement.

Rebounding tourism helped boost foot traffic in its stores and online sales also grew despite the end of the pandemic.

ALSO READ: Recipe of the day: Chocolate Ice Cream and Cones

“Lindt & Sprungli’s clear positioning as a leading brand in the premium chocolate market paid off once again in the last year,” it said.

The company said it is targeting organic sales growth of 6-8 percent in 2024 and profit margin gaining less than half a percentage point.

Lindt & Sprungli shares were up 5.6 percent in midday trading, while the Swiss stock index SPI was down 0.2 percent.

© Agence France-Presse