Lindt & Sprüngli Reduces 2026 Organic Sales Growth Outlook Again Amid Weak Demand; Shares Slide

06:57 AM EDT, 09/29/2026 (MT Newswires) -- Lindt & Sprüngli (LISN.SW, LISP.SW) shares fell nearly 9% in Zurich in Tuesday midday trading after again reducing its 2026 sales growth forecast amid weaker demand in certain European markets, reflecting subdued consumer sentiment and rising price sensitivity. The Switzerland-based chocolate manufacturer now expects its full-year organic sales to grow between 0% and 2%, against its previous guidance of a 4% to 6% rise in organic sales, according to a Tuesday release. In March, the company lowered its sales growth outlook for 2026 from the previous 6% to 8%. The group largely attributed the revised sales growth assumptions to lower-than-anticipated order volumes, primarily in businesses that are seasonal. Switzerland, Germany and Austria were particularly affected by the lower demand, with the recent summer heatwave in Europe further impacting sales in the region. Analysts at UBS Global Research described the organic sales growth forecast adjustment as "not totally unexpected," noting that the end of 2026 will be a key factor in assessing consumer demand. For 2027, the company expects to return to positive volume growth on the back of increased brand investments, innovations and an updated pricing strategy, further boosted by cost savings and falling cocoa prices. "This will be supported by our strong balance sheet and ongoing robust free cash flow generation," Chief Executive Officer Adalbert Lechner added. "The turning point to mid single digit volume growth in 2027E should be supported by up to CHF500m reinvestments prospects (hedged cocoa bean costs) to finance lower ASP, promotions and marketing campaigns. Recall also that Lindt only has c3-4% global market share and should continue to benefit from consumer trading up, share gains and its EM roll out," UBS said, adding that it continues to see Lindt as a "structural winner" in the chocolate sector. Looking further ahead, Lindt reaffirmed its medium- to long-term organic sales growth targets of between 6% and 8%. EBIT margin is still projected to see an annual improvement of 20 to 40 basis points, beginning in 2028.