Lindt Lowers 2026 Sales Growth Forecast Amid Weak European Demand

Swiss chocolate maker Lindt & Sprüngli sharply reduced its full-year organic sales growth forecast on Tuesday, citing weaker-than-expected demand in core European markets after implementing price increases.

The company now anticipates 2026 organic sales growth in the range of 0% to 2%, a significant downgrade from its previous forecast of 4% to 6%.

European Headwinds Drive Downgrade

Lindt attributed the revised outlook to subdued consumer sentiment and higher price sensitivity in Germany, Switzerland, and Austria. The company stated that necessary price hikes, driven by historically high cocoa prices in recent years, led to lower order volumes, particularly for its seasonal products.

"Subdued consumer sentiment led to weaker-than-expected order volumes in certain European markets, particularly in seasonal businesses," said Group CEO Adalbert Lechner in a statement. The company also noted that an unusually hot summer contributed to the slowdown in these regions.

Margin Target Intact, Brighter Spots Emerge

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Despite the sales forecast reduction, Lindt & Sprüngli maintained its 2026 target for an improvement in its EBIT margin of 20 to 40 basis points over the previous year. The company's profitability outlook is supported by stronger performance in other regions.

Lindt reported that its business in North America and Asia provided a partial offset to the weakness observed in Europe. This regional divergence highlights the challenges concentrated in its home continent, where consumers are pushing back against higher chocolate prices.

Outlook for 2027 and Beyond

Looking ahead, Lindt expressed optimism for a return to positive volume growth in 2027. The company expects easing cocoa prices to gradually normalize cost pressures, which will also support profit margins. Management plans to stimulate demand through adjustments to its pricing strategy, increased brand investment, new product launches, and cost-saving initiatives.

Lindt reiterated its medium- to long-term strategic goals, which target 6% to 8% organic sales growth and annual EBIT margin expansion of 20 to 40 basis points from 2028 onwards. The company is scheduled to publish its full-year 2026 net sales figures on January 19, 2027.