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(Sharecast News) - Lindt & Sprungli has ousted its chief executive, the Swiss chocolatier confirmed on Monday, less than a month after it slashed annual guidance for the second time this year amid higher cocoa prices and subdued demand.
The Kilchberg-based company said Adalbert Lechner had been replaced by former chief executive and current vice-chair Dieter Weisskopf on an interim basis with immediate effect. Lechner, who has been with Lindt for 33 years, took over the top job in October 2022 from Weisskopf.
Lindt also announced that the chief executive of Germany, Michal Spiller, was leaving after 23 years with the company. He will be replaced by Austria boss Ali Kulein from 26 October.
Lindt said: "The board of directors has concluded that Lindt & Sprungli requires new operational leadership to return to consistent, strong growth and to capture opportunities in all its markets globally."
Lindt warned at the end of September that subdued consumer sentiment and the unprecedented heatwave in Europe had hit sales, leading it to revise full-year guidance for organic sales growth to between 0% and 2%. It had previously forecast growth of between 4% and 6%. It was the second time this year Lindt has been forced to cut sales forecasts.
It also flagged that cocoa prices continued to be "historically high".
Weisskopf said on Monday: "I know Lindt & Sprungli, the market and our people well, and all of it is close to my heart. My focus in the coming months will be to return our European business to growth and to build on the strong performance in North America as well as in Asia-Pacific markets such as Australia, China and Japan, where we continue to gain market share.
"My task is to hand over to the next chief executive a company with renewed momentum."
The search for Lechner's permanent replacement was already underway, Lindt noted, with the intention of appointing someone by the second quarter of 2027.
As at 1300 BST, the Zurich-listed stock was trading 2% lower.
Jefferies said: "While a margin reset is not management's message today, the market will worry it will be needed to get back to long-term profitable growth, we fear. Our concern remains that if European volumes recover more slowly than expected, the trade-off between reinvestment and margin expansion becomes increasingly difficult to avoid.
"That leaves 2027 as a potential point for a margin reset, particularly with a new permanent CEO expected in the second quarter of 2027, who will have the opportunity to reassess the investment and profitability framework."