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(Sharecast News) - Shares in Lindt & Sprüngli tanked on Tuesday after Swiss chocolate maker slashed its forecast for organic sales growth in 2026, saying that price increases have dampened demand, along with this summer's heatwave across Europe.
The company, officially known as Chocoladefabriken Lindt & Sprüngli, said it now expects to grow organic sales by up to 2% this year, down from earlier guidance of a 4-6% increase. The EBIT margin guidance of a 20-40 basis-point improvement has been maintained.
Lindt & Sprüngli partly attributed the outlook downgrade to lower-than-expected orders in Germany, Switzerland, and Austria, particularly in seasonal businesses, particularly in seasonal businesses, as a result of "high price sensitivity among consumers".
An unprecedented heatwave in Europe also weighed on sales across the entire chocolate industry, it said.
Group chief executive Adalbert Lechner said that price increases were "necessary [...] due to historically high cocoa prices in recent years".
The company, which produces chocolates at 12 factories in Europe and the US and employs 15,500 staff worldwide, said it still expects positive volume growth in 2027, supported by easing cocoa prices. From 2028 onwards, organic sales growth should return to the 6-8% target range.
"As cocoa prices have eased from historical highs, we expect cost pressure to gradually normalise in the coming months," Lechner said.
"We are confident that our adjusted pricing strategy, increased brand investments, innovations, and ongoing cost savings will materialise, and that demand will improve, contributing to a positive volume growth in 2027."
The Zurich-listed stock was 7.7% lower at 8,400 by 1000 BST.