Lindt cuts sales forecast as consumer spending slows

Lindt & Sprüngli outlook adjusted: briefing

• Lindt cuts 2026 organic sales growth guidance to 0-2%
• Weaker consumer sentiment reduced orders across key European markets
• Rising price sensitivity hit seasonal chocolate demand and volumes
• Heatwave conditions further weakened chocolate sales across Europe
• Lindt maintained profit targets and reaffirmed long-term growth ambitions

Lindt & Sprüngli has significantly downgraded its 2026 sales growth outlook.

The confectionery giant took the industry by surprise this week with the news it’s dropping its full-year 2026 guidance for organic sales growth from 4–6% to 0–2%.

That’s a huge adjustment for the business which, in March this year, reported record organic growth in its full-year 2025 report.

The reason for the reduction?

“Subdued consumer sentiment and increased price sensitivity,” says Lindt.

Consumer caution weighs on demand

The Swiss multinational says that softer consumer sentiment and growing price sensitivity have continued to impact purchasing behaviours across several key European markets, including Germany, Switzerland and Austria, resulting in weaker-than-expected order volumes.

And seasonal categories were said to be particularly affected as shoppers became more selective with discretionary spending.

The Group also pointed to the impact of an “unprecedented” summer heatwave across Europe, which hit chocolate sales across the industry. But extreme weather was only part of the issue, with record-high cocoa costs pushing up chocolate prices and adding further pressure to already cautious consumers.

“Necessary price increases due to historically high cocoa prices in recent years, and subdued consumer sentiment led to weaker-than-expected order volumes in certain European markets, particularly in seasonal businesses,” says Lindt CEO, Adalbert Lechner.

But it wasn’t all bad. As Lechner explains, the group enjoyed a “robust performance in key markets including North America and Asia”.

The contrast shows the value of a diversified international footprint, with growth in North America and Asia helping to cushion the impact of softer demand in Europe.

And, as cocoa prices start to ease, for now at least, Lechner says the group expects cost pressures to “gradually normalise in the coming months”.

What’s more, the maker of high-end chocolate brands including Lindor, Excellence and Ghirardelli has confirmed that it’s maintaining its profitability guidance for the year.

Lindt profitability holds

Lindt continues to expect an improvement in EBIT (earnings before interest and taxes) margin of between 20 and 40 basis points compared with the previous year.

The expected margin improvement will, it says, be driven by a revised pricing strategy and ongoing cost management initiatives.

“We are confident that our adjusted pricing strategy, increased brand investments, innovations, and ongoing cost savings will materialise, and that demand will improve, contributing to a positive volume growth in 2027,” says Lechner. “This will be supported by our strong balance sheet and ongoing robust free cash flow generation.”

The move suggests the business is prioritising profitability over volume growth as consumers become increasingly cautious with spending.

Although higher chocolate prices have tempered demand in parts of Europe, Lindt believes its premium credentials, pricing strategy and operational discipline will enable it to navigate the slowdown without compromising its long-term ambitions.

The company’s reference to an adjusted pricing strategy may also point to a more measured approach to future price increases as cocoa costs begin to ease, potentially helping to rebuild volumes without sacrificing profitability.

Looking further ahead, the company has also reiterated its medium- to long-term growth ambitions beyond 2028, indicating that it views the current slowdown as a near-term challenge rather than a change in its long-term growth trajectory.

The announcement also highlights the challenges facing the confectionery industry, suggesting that even the strongest premium brands are not immune to consumer caution and cocoa-driven price pressures.

Premium ambitions

While Lindt may have lowered its expectations for 2026, the chocolate maker remains committed to its long-term growth plans.

It’s reiterated its medium- to long-term targets of delivering 6-8% organic sales growth alongside annual EBIT margin improvements of 20-40 basis points from 2028 onwards.

At the heart of that strategy is a continued focus on premium chocolate, a segment Lindt believes still has significant room for growth despite current economic pressures.

While shoppers may be more cautious with spending in the short term, the company bets that consumers will continue to seek out high-quality treats and affordable indulgences, particularly as inflationary pressures begin to ease.

And, as the global leader in premium chocolate, it sees its strong brand portfolio, product innovation and international reach as key advantages in capturing that demand.