Swiss chocolate makers, Lindt & Sprüngli, achieved strong organic growth of 7.8% in 2024, against record-high cocoa costs.
In sales results for 2024, published today, group sales increased by 5.1% to CHF 5.47 billion (€5.82), influenced by the negative currency effect of -2.7%, mainly due to a weaker US dollar and Euro.
This increase was supported by mid-single-digit price increases to offset higher cocoa prices, as well as solid volume/mix development, with all regions contributed to the sales growth.
Challenging Year
The chocolate makers said it was a challenging year characterised by record-high cocoa costs, substantial price increases, and weakened consumer sentiment.
"The cocoa market was volatile in the reporting year, with cocoa prices remaining at a historic high by the end of 2024," a statement read, ahead of its full-year results announcement in March.
"Offsetting the high cocoa costs forced the group to adjust its pricing, which will be further required in 2025.
"Lindt & Sprüngli grew in both value and volume in 2024, positioning it as one of the fastest-growing chocolate manufacturers, and thereby gaining market share globally."
Global Retail
In global retail, sales in the group's 560 own stores, 30 more than in 2023, and 21 e-shops, posted double-digit growth in all markets with an overall 16.7% growth.
In regional growth, Europe posted the highest sales with CHF 2.59 billion (€2.75 billion), up from CHF 2.41 billion (€2.56 billion) in the previous year, growing organically by 9.5%.
Lindt & Sprüngli achieved double-digit growth in many European markets, especially in the UK, Central Eastern Europe, France, and Benelux.
Other core markets like Germany, Italy, and Switzerland contributed to the results with solid mid-single-digit growth.
North America increased sales to CHF 2.15 billion (€2.29 billion), up from CHF 2.11 billion (€2.24 billion) in the previous year, an organic growth of 5.0%.
Performance in North America was influenced by a shift of Easter orders into 2023, reflecting the earlier Easter date in 2024 and the restocking by major retail customers in the first half of 2024.
Excluding these one-off effects, the group said the organic growth rate would have been 6.0%.
Lindt & Sprüngli in the USA and Canada posted solid single-digit growth and gained further market shares.
Ghirardelli also showed a strong performance, growing high single digits and gaining market share as well.
Russell Stover faced a slight decline in sales in a challenging market.
The rest of the world achieved organic sales growth of 10.0% to CHF 0.72 billion (€0.76 billion), up on the previous year of CHF 0.68 billion (€0.72 billion), with development in core markets like Brazil, Japan, and China at double-digit growth rates.
