Linked In
News In
Linked In

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

Terrorism, weather make for 'challenging' chocolate market - Lindt

Twitter Linkedin

Shares in the Swiss chocolate maker Lindt & Spruengli fell on weaker than expected annual sales numbers.

The maker of high-end chocolate reported that 2015 sales rose 7.9%, to 3.65bn Swiss francs, behind the 3.74bn francs analysts forecast.

The company noted a "challenging market environment," over 2015, which may bode poorly for Friday's European cocoa demand data.

Lindt shares fell 4.6% to a four-month low.

'Sombre mood'

Lindt noted that it continues to outperform the chocolate markets as a whole, saying the sector "still lack major growth drivers".

The company cited the high price of cocoa, falling currencies in overseas markets, particularly in oil-exporting countries, and "extensive restructuring" among key companies.

In addition, Lindt noted "the unsettling effects of terrorist threats and concerns about deflation and unemployment all had an adverse effect on consumer sentiment".

"A hot summer and the late onset of winter deepened this sombre mood."

Grind data

Friday will see the release of data on the pace of cocoa grinding in Europe over the last three months of 2015.

Cocoa grinding, the processing of beans into powder, is a proxy for demand, and will give further insight into how far higher cocoa prices and some global economic worries have threatened consumption.

Grinding is expected to be up around 2-3% year on year.

Organic growth

Globally Lindt saw organic growth in sales, excluding acquisitions of 7.1%.

Denominated in local currencies, sales were up 13.5%.

But the group's earnings were reduced by the strength of the Swiss franc, which reduced the value of foreign currency earnings.

North American growth slows

Local currency organic sales growth, excluding new acquisitions, was 5.4% in European markets.

In North America, the company saw organic growth of 7.9%.

Sales growth in the region has slowed, as the group's recently acquired Russell Stover brand eliminated some unprofitable product lines.

And in the rest of the world, organic growth was 11.4%.

"Subsidiaries in Australia, Japan, Russia and Brazil made particularly good progress, recording double-digit growth," Lindt said.

Lindt shares were trading down 3.6% at 68,005 Swiss francs in afternoon deals in Zurich.


Twitter Linkedin
Related Stories

Hedge funds turn net bullish on ags - ahead of price drop to historic low

Speculators are wrong-footed in soymeal, in which they hike bullish bets just before a price tumble. But they fare better in cotton and cocoa

Soft commodities better bets than grains for 2018, says Commerzbank

Indeed, investors are overrating prospects for corn and wheat futures. But cocoa futures have scope for gains, and coffee could see a "price surge"

Agricultural commodity prices poised for gains - particularly in 2019

... FocusEconomics analysis of broker forecasts shows, even as the market negotiates what Bcom terms a "key test" of whether price lows have been set

Evening markets: La Nina fears help ags outperform, for once

... posting small gains, rather than declines seen in other commodities, and shares. But La Nina is not a help for all ag contracts
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© 2017 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069