Lindt Weighs Higher Chocolate Prices to Offset Cocoa Costs
Lindt Considers Higher Chocolate Prices
Chet Susslin/Bloomberg
Cocoa futures have more than doubled in the past three years, putting pressure on Lindt's’ profitability.
Cocoa futures have more than doubled in the past three years, putting pressure on Lindt's’ profitability. Photographer: Chet Susslin/Bloomberg
Aug. 24 (Bloomberg) -- Bloomberg's Deirdre Bolton reports on the latest breaking news and top stories in today's Business Briefs. (Source: Bloomberg)
Lindt & Spruengli AG, the world’s largest maker of premium chocolate, said it’s considering price increases to offset rising cocoa costs.
Price rises will “mainly depend on the rate of inflation and the currency situation in different countries,” the Kilchberg, Switzerland-based chocolatier said in a statement today.
Cocoa futures have more than doubled in the past three years, putting pressure on chocolate makers’ profitability. Lindt today said first-half profit rose to 24.8 million Swiss francs ($24 million) from 2.7 million francs in the year-earlier period, when the company had one-time costs from closing U.S. stores and an impairment charge for a warehouse in Italy.
“In light of the still insecure economic situation, price adjustments to date have only been made cautiously and selectively,” the company said.
Profit beat the 18.9 million-franc median estimate of three analysts’ estimates. Sales rose 7.9 percent to 1.06 billion francs.
Lindt said it will keep trying to offset higher cocoa prices as much as possible by cutting costs.
“The company’s priority will remain the strengthening of the brand and gaining market share,” the maker of Ghirardelli chocolate said.
To contact the reporter on this story: Tom Mulier in Geneva at tmulier@bloomberg.net.
Rate this Page