Lindt: sales disappoint as lockdowns hurt

(CercleFinance.com) - Lindt has reported a worse-than-expected drop in sales on Tuesday, saying that its sales fell by 6.
1% in organic terms in 2020, as it continued to suffer from store closures over the different lockdowns.

This fall is about 1% more than the consensus, which forecast a decline of about 5%, analysts pointed out.

Total sales slightly exceeded 4 billion Swiss francs last year, the Swiss chocolate maker said, down 10.9% in Swiss francs.

Business was curtailed by lockdowns due to the pandemic, with the company's own global store network suffering from closures and reduced consumer traffic, the group said.

However, the company reported market share increases in nearly all countries, as the premium segment - in which Lindt & Sprüngli is leading - increased at an above-average growth, it added.

The company confirmed that it will achieve its operating margin (EBIT) target of around 10% in 2020, although investors still frowned on the news, after the share's recent rally.

The participation certificates, traded on SIX Swiss Exchange, were down almost 4% after the report was published.

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