Weak consumer demand cuts Lindt's sales forecasts

Premium chocolate maker Lindt & Spruengli announced yesterday that it had lowered its organic sales growth forecasts for 2026 for the second time this year, citing low consumer confidence; meanwhile, price hikes and heatwaves in Europe have dampened demand, according to Reuters.

The maker of Lindor chocolates expects sales growth of between 0% and 2% this year, whereas it had previously projected an increase of 4%-6%-a figure that also exceeded the 3.9% forecast by analysts. The Swiss company had already cut its estimates in March, Agerpres notes.

"A second forecast downgrade in six months hurts Lindt's reputation and valuation," analysts at Vontobel stated.

Lindt CEO Adalbert Lechner explained that record-high cocoa bean prices forced the company to substantially raise prices, while low consumer confidence led to lower-than-expected orders in certain European markets, particularly for seasonal products. The heatwaves in Europe this summer reduced growth by approximately 1.5%, the company's head stated.

Despite lower sales forecasts, Lindt maintained its estimate of a 20-40 basis point improvement in profit margins by 2026 and reaffirmed its medium-term goal of achieving 6-8% organic sales growth and a 20-40 basis point profit margin improvement starting in 2028.

The company assured that it does not intend to resort to layoffs, although a hiring freeze has been implemented. Pricing strategies, increased investment, innovation, and cost-cutting measures will improve profitability and boost sales growth in 2027, Lechner reported.

It is worth noting that in March, Lindt officials stated that chocolate sales were growing faster among American users of GLP-1 weight-loss drugs than among the general population. At the time, the company noted that an internal study-based on data provided in February by market research firm Circana-found that 15% of US households use GLP-1 drugs and account for 17.5% of chocolate sales. "Consumers who are cutting back on high-calorie foods-such as pasta, pizza, and potato chips-are still looking for a certain kind of indulgence," Adalbert Lechner stated at the time, emphasizing: "They are switching to premium products. Less means more: small rewards offering moments of happiness, rather than mindless snacking."

Lindt reported at the time that premium chocolate sales in the US among GLP-1 users rose by nearly 17% in 2025, compared to a 6.5% increase among non-users.

Analysts at Berenberg expected the introduction of oral GLP-1 weight-loss drugs to have a negative impact on the food industry-particularly the confectionery sector-in the coming years. They forecast a 0.9 percentage point decline in sales volumes for Lindt in 2027.