Lindt & Sprüngli: the business model remains strong

Lindt & Sprüngli has started the current year very strongly, gaining market share in all strategically important markets. However, since the beginning of March, the global health and economic crisis from the Covid-19 pandemic, together with the severe restrictions imposed to limit the spread of the virus in many major markets, are impacting the company’s business. The impacts affect mainly travel retail, own store network, food service as well as the grocery trade. In addition the global lockdown corresponds to the Easter period which represents an important part (estimated to around 15%) of the annual sales. For these reasons, Lindt & Sprüngli had to withdraw its 2020 guidance. However, the mid to long term growth targets are maintained and the dividend, including the special anniversary dividend, have been confirmed as the company enjoys a solid balance sheet with high equity ratio and high liquidity.