Posted by Turgut Ziyal on Wednesday, March 17, 2010
Under: confectionery
Lindt & Sprüngli revealed that its 2009 fiscal year profits dropped by 35.4% as the economic downturn hit demand for its premium chocolate products. Lindt says that the global economic crisis caused the chocolate market have decline in sales for the first time in ten years. Price conscious consumers also increasingly looked to private label products, Lindt also mentions that the currency fluctuations and higher cocoa prices reduced their profitability.
Looking to the coming year, Lindt foresees uncertainties in the commodity markets to continue, with ups and downs in cocoa prices which may impact results negatively also in 2010. Nevertheless, Lindt & Sprüngli did suggest that its operating performance would improve – albeit “slowly” - in the second half of the year.
Lindt & Sprüngli said that it would look to expand in Asia as well as its identified growth markets – the UK, China, Russia and Scandinavia.
When questioned Lindt officials said they would "fight like hell" to stay independent if a takeover bid came in for Lindt. Industry watchers consider Lindt to be the next likely takeover target in the chocolate sector following Kraft's acquision of Cadbury.
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