Updated
Updated · bbc.co.uk · Jul 21
Lindt Reverses Some Price Hikes After 0.9% Sales Drop on 11.8% Increase
Updated
Updated · bbc.co.uk · Jul 21

Lindt Reverses Some Price Hikes After 0.9% Sales Drop on 11.8% Increase

1 articles · Updated · bbc.co.uk · Jul 21

Summary

  • Lindt cut back some price increases and stepped up marketing for the second half after first-half revenue slipped 0.9% and sales volumes fell 7.5%.
  • An 11.8% groupwide price rise hurt demand in price-sensitive markets including the UK, Germany and Switzerland, where weaker Easter trading dragged European sales down 2.1%.
  • Pre-tax profit fell 1.5%, while airport sales also weakened as conflicts in the Middle East reduced passenger traffic and tourism from Asia and the region.
  • North America, Australia, China and Japan improved, but Europe still generates more than half of Lindt's revenue, leaving the company focused on restoring volume growth in 2027.
  • The setback underscores wider pressure on chocolate makers as climate-driven cocoa shortages lift costs, with UK chocolate and sweet prices up 7.9% versus 2.8% overall inflation.

Insights

With its stock down 26%, is Lindt’s price U-turn a savvy correction or a sign the premium chocolate market is cracking?
Lindt just cut prices after a massive hike. Will other premium brands be forced to follow, or will they shrink your chocolate bar instead?