Not even Brexit could wipe the smile off premium chocolate maker Lindt & Sprüngli's face last year, with the group posting strong sales growth in its Europe division.
Lindt & Sprüngli reported 6.2% growth in the division in full-year 2019, despite what it said were 'difficult political conditions' in the region.
Sales Performance
In all key European markets, the business said that it expanded its market share, with sales growth 'particularly strong' in Germany and Austria, and double-digit growth reported in Eastern Europe and the UK.
Overall, the business reported organic growth of 6.1% in the period, to CHF 4.51 billion (€4.17 billion), despite a currency environment that it described as 'volatile'.
Currency effects had a negative effect on the group's consolidated results, it said, due to a weaker euro.
'The market environment continues to be very challenging,' Lindt & Sprüngli said in a statement. 'Various political instabilities, along with a changing retail landscape, are putting pressure on the saturated US and European markets.
'Despite this, the premium chocolate market grows above average – a trend that Lindt & Sprüngli, as a leading global manufacturer of premium chocolate, can benefit from.'
Regional Performance
Away from Europe, Lindt & Sprüngli posted organic sales growth of 5.4% in North America, despite 'substantial price pressure' in the market.
It said that its Mexico business also finished the year with double digit sales growth.
In the Rest of the World division, organic sales were up 7.6%, with Japan, China and Brazil performing 'particularly well', the group said.
Its Global Retail division, which includes 500 Lindt & Sprüngli stores around the world, also made a 'notable contribution' to its performance, the group said.
Looking ahead, the group said that it is targeting a mid- to long-term sales growth of 5% to 7% per annum, combined with a 'steady improvement' in the operating margin of 20–40 basis points per annum.
Its full-year results report will be published on 3 March.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
