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Price hikes nibble at demand for Lindt chocolate
Economy

Price hikes nibble at demand for Lindt chocolate

by  AFP
1 min read
Consumers continued to buy Lindt chocolate despite the company hiking prices due to record-high cocoa costs
Consumers continued to buy Lindt chocolate despite the company hiking prices due to record-high cocoa costs. Photo: Fabrice COFFRINI / AFP/File
Source: AFP

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Premium Swiss chocolate maker Lindt & Sprungli hiked its 2025 sales target as cocoa price hikes passed on to customers outweighed a drop in volumes.

The company, known for its Lindor pralines and gold chocolate Easter bunnies, hiked its prices by 15.8 percent to offset record-high cocoa costs.

While sales volumes declined by 4.6 percent, it still saw revenues climb by nine percent to 2.4 billion Swiss francs ($3.0 billion) as consumers continued to buy chocolate despite the price hikes.

Excluding the effect of changing currency values, sales growth was 11.2 percent.

"We have shown resilience in a challenging market environment," chief executive Adalbert Lechner said in a statement, pointing to product innovation and cost-cutting efforts to mitigate the cocoa cost increase.

Nevertheless, net profit slid 13.3 percent to 189 million Swiss francs in the first half of the year.

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The company raised its target for organic sales growth to nine to 11 percent, up from seven to nine percent previously.

Source: AFP

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