Business
Lindt cuts Christmas prices after sales outlook cut
Livemint··29 Sept
Lindt said it will lower Christmas chocolate prices and cut prices further from January after a second sales-growth guidance cut this year. The Swiss firm now expects 0-2 percent organic sales growth, down from 4-6 percent. Shares fell as much as 8 percent in Zurich on 29 September. CEO Adalbert Lechner cited weak European demand and price-sensitive customers.
Prism
What It Means For You
- Christmas Lindt products are set for lower shelf prices, with broader cuts planned from January.
- Investors saw Lindt shares drop as much as 8 percent in Zurich after the guidance cut.
- Analyst Jean-Philippe Bertschy said repeated guidance cuts test the firm's premium valuation story.
What's Happening
- CEO Adalbert Lechner announced Christmas price cuts after a second sales outlook cut this year.
- Organic sales growth guidance is now 0-2 percent, down from 4-6 percent.
- Lechner said hedging limited cocoa-price relief this year but expects help next year.
Why demand softened
- Lindt cited weak consumer confidence and tepid demand in Germany, Switzerland and Austria.
- A summer heat wave further hurt chocolate sales, Bloomberg reporting in the piece said.
- Shares were already down over 25 percent this year before the latest one-day drop.
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