Lindt hits new sales record
Swiss luxury chocolatier Lindt & Sprüngli has broken its sales record in 2017. Releasing figures earlier this week, the company revealed that it had passed sales of CHF 4.088 billion last year – the first time in its 175-year history that it’s managed such a feat. This represents year-over-year growth of 4.8%, taken against 2016. The company said its new record could be explained easily by the fact that it managed to gain “significant shares in almost all markets” throughout the year.
Lindt’s share price is up 12% over the past 12 months
SOURCE: Yahoo Finance
Despite this win, the company’s share price took a dive on the back of the news. While Lindt’s growth came in at almost 5%, organic growth was just 3.7%:; undoubtedly pointing towards a strong business, but below the company’s own long-term strategic target. This was down, in part, to muted performance in the U.S., where growth was more modest than investors hoped. The company explained that this figure “still represented a good performance” given “challenging conditions” such as “saturated markets and growing pressure on prices.”
Despite a sluggish American performance, Lindt outperformed elsewhere. In Europe, strong demand from the UK, Germany and Switzerland saw organis sales rise 6.2%. In Canada, growth came in at “double digit” figures. And in the rest of the world segment, Lindt saw organic sales growth of 12.4%, thanks to rapid expansions in Japan, China and Brazil.
Dominion holds Lindt & Sprüngli in its Global Trends Luxury Fund.
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