Lindt cuts sales forecast as heatwaves dampen demand for chocolate

Lindt Slashes 2026 Sales Forecast as Heatwaves and Cocoa Prices Hurt Demand

Impact of Heatwaves and Cocoa Prices on Lindt's Sales Forecast

By Amir Orusov

Sept 29 (Reuters) - Heatwaves in Europe this summer dented demand for chocolate, Lindt & Spruengli said on Tuesday, as it cut its 2026 sales forecast for the second time this year.

The Swiss chocolate maker said Europeans bought less chocolate as temperatures broke records across the continent and after it had to hike its prices due to the surging cost of cocoa.

Sales Forecast Revision and Market Reaction

Lindt now expects organic sales growth of 0% to 2% in 2026, down from its earlier 4% to 6% range and below the 3.9% market consensus cited by Vontobel. It had already cut the guidance in March.

Lindt shares hit their lowest price since March 2021 in early trading and were down 6.6%, at the bottom of Europe's benchmark STOXX 600 index, by 0820 GMT.

Analyst Commentary

"A second cut within six months dents Lindt's reputation for reliable guidance, a key support for its premium valuation," Vontobel analysts said in a note to investors.

Factors Behind the Forecast Cut

Rising Cocoa Prices and Consumer Sensitivity

Lindt CEO Adalbert Lechner said historically high cocoa prices forced it to raise prices substantially, squeezing demand as shoppers became increasingly price-sensitive in the uncertain economic environment.

Over the last six months alone, cocoa prices have risen by about 80%.

Heatwave Impact and Seasonal Product Performance

This subdued mood led to weaker-than-expected order volumes in certain European markets, particularly in Lindt's seasonal products. The European heatwave this summer also reduced growth by roughly 1.5%, Lechner said.

Industry-Wide Pressure

The warning adds to signs of pressure across the chocolate industry. In July, Swiss chocolatier and cocoa processor Barry Callebaut forecast a 1% decline in annual sales volumes.

Lindt's Response and Future Outlook

Profit Margin Guidance and Medium-Term Targets

But despite the weaker sales forecast, Lindt maintained its guidance for a 20- to 40-basis-point rise in its 2026 operating profit margin, and reiterated its medium-term targets for 6% to 8% organic sales growth and yearly operating profit margin improvements of 20 to 40 bps from 2028 onwards.

Product Strategy Adjustments

Lechner told reporters Lindt's larger premium gift boxes and praline assortments saw the sharpest volume declines, while lower-priced products suffered less.

Based on this, he said the company would be adapting packaging sizes, with greater emphasis on smaller items that encourage more frequent purchases and better align with consumer spending patterns.

Cost-Saving Measures and Hiring Freeze

Lechner expects the company's cost-saving measures, adjusted pricing strategy and higher brand investments to improve demand and drive positive volume growth in 2027.

Lindt does not plan job cuts, although it has implemented a hiring freeze, he added.

(Reporting by Amir Orusov in Gdansk, additional reporting by Anastasiia Kozlova; editing by Bartosz Dabrowski and Milla Nissi-Prussak)