Swiss chocolatier Lindt & Sprüngli has slashed its growth guidance for 2026 as it warned of geopolitical uncertainties amid the ongoing conflict in the Middle East.
The group lowered sales growth forecasts for the current year from 6%-8% to 4%-6%, but left expectations for an improvement in operating profit margin of 20-40 basis points unchanged.
Warren Ackerman of Barclays said he believed the cut to guidance was more focused on consumer sentiment, given Lindt’s exposure to the Middle East is not that significant.
“We question how much of this guidance reduction is due to the ongoing tensions, and how much is due to volume issues, which would have been present even without the geopolitical tensions due to the unprecedented pricing taken,” the Barclays analyst added. “Interestingly the recent Nielsen data in Europe does look a little better and in the US despite a tough chocolate market, Lindt is outperforming.”
Lindt hiked its prices by 19% in 2025 in reaction to the record spike in cocoa commodity costs. The move drove a 12.4% jump in organic sales growth last year but led to a 6.6% decline in volumes. Lindt said the drop in volumes was less than it expected.
Revenues in Swiss francs rose 8.2% to CHF5.9bn (£5.6bn), dragged down from organic levels by currency headwinds.
Lindt organic sales in Europe increased 15.3% to CHF3bn (£2.9bn), with all the group’s subsidiaries recording double-digit growth, while the group registered growth of 8.9% to CHF2.2bn (£2.1bn) in North America.
Operating profits increased by 9.8% to CHF971m (£929m), with an EBIT margin of 16.2%, with high cocoa prices offset by efficiency gains and cost discipline, alongside the price increases.
Lindt said it expected the trend from quantity to quality chocolate consumption to continue, with medium- to long-term organic sales growth targets of 6%-8% reinstated from 2027 onwards.
“We delivered strong growth by focusing on our premium strategy and driving innovation,” CEO Adalbert Lechner said. “Consumers worldwide continue to seek quality and moments of indulgence, and we meet that demand with exceptional products.”
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