Annual Report
2020

Annual Report

Financial Year 2020

Lindt & Sprüngli achieved a solid result in the challenging reporting year 2020, which was marked by the global Covid-19 pandemic, and increased market shares in virtually all countries.


Sustainability

At Lindt & Sprüngli, holistic sustainability plays a central role. Economic success, environmental protection and social responsibility always go hand in hand. Read more about this in the focus chapter of the Annual Report 2020.

Bean-to-Bar

For Lindt & Sprüngli, sustainability begins in the country of origin with the full traceability of our most important raw material, the cocoa beans. A difference that distinguishes us as a premium producer.

Letter to Shareholders

Despite major global challenges due to the Covid-19 pandemic, Lindt & Sprüngli achieved a solid result in the financial year 2020, once again outperforming the overall chocolate market and gaining market shares in nearly all countries. The organic sales development of the Lindt & Sprüngli Group declined by -6.1%, but positive sales growth was generated in important markets. Despite the negative impact of the second wave of the pandemic, the decline in sales and profit margin (EBIT) is within the target range announced in the half-year 2020. Significant progress was made in the area of sustainability, on the one hand for the important raw material cocoa beans, and on the other hand in the areas of greenhouse gas and water.

Letter to Shareholders

Dr. Dieter Weisskopf
CEO Lindt & Sprüngli Group

Ernst Tanner
Executive Chairman
of the Board of Directors

Key Figures & Financial Report

In the reporting year 2020, which was marked by the global Covid-19 pandemic, Lindt & Sprüngli achieved a solid result with group sales of CHF 4.02 billion, representing an organic decline of -6.1%. Although all three market regions recorded sales declines, Lindt & Sprüngli increased market shares in virtually all countries.

Group Sales
CHF .0 billion
-6.1% compared to previous year
Operating Profit (EBIT)
CHF million
-29.1% compared to previous year
Net Income
CHF million
-37.5% compared to previous year
Investment Volume
CHF million
Employees worldwide
.

Lindt & Sprüngli Group Sales 2020

in million CHF

Operating Profit (EBIT) 2020

in million CHF


* Includes one-off effects of CHF 81.6 million. Without these effects the EBIT amounts to CHF 674.6 million and the EBIT margin to 15.0%.

Markets

Despite the exceptional global market environment, Lindt & Sprüngli managed to gain market share in most markets after Easter and to grow faster than the overall chocolate market. As a leading global premium manufacturer, Lindt & Sprüngli benefited from the growth of the premium chocolate markets and the important sales contribution of the key products Lindor and Excellence.

All Markets

Lindt & Sprüngli Group Sales 2020

Europe

Despite the problems caused by the Covid-19 pandemic, Lindt & Sprüngli had a comparatively solid performance in the region of “Europe”, reporting a modest decline in sales of –2.9% to CHF 2.01 billion. Sales increased in Germany, the United Kingdom and Spain as well as the markets in Eastern Europe, Nordic, and the Netherlands.


North America

During the reporting period, performance in the “North America” region was heavily influenced by the Covid-19 pandemic. Annual sales amounted to CHF 1.54 billion, equivalent to a decline of -6.8% in organic sales growth. The performance of the own shops was severely impacted by repeated lockdowns. Despite this, Lindt & Sprüngli still managed to increase its market shares across the entire region. In the US, Canada, and Mexico the bestsellers Lindor and Excellence once again proved to be the key growth drivers. Wholesale had a strong year thanks to increased self-consumption of chocolate bars at home and the performance of the baking segment. Online sales doubled compared to the previous year. However, this dynamic performance could only partially compensate for the decline in sales at the own shops. Improved efficiency in the supply chain helped increase the profitability of the “North America” segment.


Rest of the World

The markets in the “Rest of the World“ segment were strongly influenced by the Covid-19 pandemic. The region recorded a decline in sales mainly due to the strong decline of the Travel-Retail business and the temporary shop closures as a result of the lockdowns, sales of CHF 0.47 billion. Organic sales development was at -16.1%. Positive highlights were the markets in China and Japan, which still achieved good sales growth. Holistic e-commerce concepts and the expansion of digital sales and marketing channels made it possible to serve consumers even in exceptional times. The expansion of the own retail business was continued and complemented with an innovative shop-in-shop concept.


Global Retail

Global Retail achieved sales of around 450 million Swiss francs in a challenging financial year, which was dominated by shop closures worldwide due to the Corona pandemic.

Global Retail

“In 2020, we have reached our first major milestone: 100% of our cocoa beans are traceable and externally verified.”
Dr. Dieter Weisskopf­
Group CEO Lindt & Sprüngli

Substainability

In 2020, we have reached our first major milestone: 100% of our cocoa beans are traceable and externally verified. For us, however, this is just the beginning of our
In the long term, we want to implement sustainability holistically along the entire value chain.

Our pathway to sustainable chocolate

Bean-to-Bar

We produce as one of the few large chocolate makers from bean-to-bar. Therefore, as a company, we have know-how along the entire value chain - from the selection and careful processing of cocoa beans and high-quality ingredients to the finished chocolate product. For us, this is the most important prerequisite for establishing a sustainable and traceable cocoa bean supply chain. A task, which we do not want to delegate to others because this is the only way to implement sustainability directly and efficiently.

The Lindt & Sprüngli Bean-to-Bar Approach

Lindt & Sprüngli Farming Program

Through the Lindt & Sprüngli Farming Program for cocoa beans, we want to provide cocoa farmers and their families with a good and resilient livelihood, sustainably intensify cultivation, and at the same time ensure the supply of high-quality cocoa beans from a consistent base of farmers.

Our successes since 2008

The 4 pillars of the Program

1.

Tracebility and farmer organization

2.

Farmer training and knowledge transfer

3.

Farmer investment and community development

4.

Verification and continuos progress

3.
1,940,122
shade trees have been planted since the launch
­­of the Program.
3.
5,990,841
cocoa seedlings have been planted since the launch­­
of the Program.
1.
79,979
cocoa farmers are part of the Farming Program.
3.
~130,000
members of village communities are benefiting from investments in the development of water infrastructure.
2.
4.
443
field staff help the cocoa farmers every day in the countries of origin and check the progress of the Program.
2.
21,883
cocoa farmers have received training since the launch of the Program, in order to diversify and increase their income.
3.
33
schools have been renovated, enabling 4,862 children to go to school.

Milestones of the Lindt & Sprüngli Farming Program

2008
The Lindt & Sprüngli Farming Program is launched in Ghana.
2012
The Program is expanded to include four new pillars: traceability, training,
community support and verification.
2013
The Lindt Cocoa Foundation is established.
2014
The Lindt & Sprüngli Farming Program starts in Ecuador.
2015
The Lindt & Sprüngli Farming Program starts in Madagascar.
2016
Important milestone in Ghana: 100% of cocoa beans are fully traceable and externally verified.
2017
Papua New Guinea becomes part of the Farming Program.
2018
Start of the Program in the Dominican Republic. All countries from which Lindt & Sprüngli
sources cocoa beans are now part of the Farming Program.
2019
The initiative against deforestation and for agroforestry systems for cocoa enters into force
in all five countries of origin.
2020
Goal achieved: 100% traceable and externally verified cocoa beans.

Corporate Governance

One of our top priorities is to create transparency and thus ensure confidence in our company. Through its commitment to good corporate governance, Lindt & Sprüngli creates sustainable value for its shareholders, consumers, employees and other stakeholders.

Corporate Governance

Compensation Report

Lindt & Sprüngli's success as a company relies on the commitment of its dedicated and professional staff. In a highly competitive labor market, we strive to attract and promote the best talents, and ensure they stay with us over the long term. In the interests of our shareholders, we take a transparent and sustainable approach to compensation. This Compensation Report describes the basis and principles of remuneration for the most senior officers of the Lindt & Sprüngli Group.

Compensation Report

Our Brands

Global Brands
77% of Sales
Regional Brands
22% of Sales
Local Brands
1% of Sales
Start Letter to Shareholders Key Figures and Financial Report Markets Sustainability Bean-to-Bar Lindt & Sprüngli Farming Program Our successes since 2008 Gallery Milestones of the Lindt & Sprüngli Farming Program Corporate Governance Compensation Report Brands