Lindt & Spruengli scraps 2020 targets as epidemic hits business (updated)

Chocoladefabriken Lindt & Spruengli AG

31/03/2020 06:51

(Adds detail, background)
    ZURICH, March 31 (Reuters) - Swiss chocolate maker Lindt &
Spruengli  LISN.S  said its original goal to grow organic sales
by 5-7% this year was no longer valid as the coronavirus
epidemic hit its business.
    After a strong start to the year, the group saw the
spreading virus having an impact at the beginning of March,
particularly in travel retail, its own store network, food
service and the grocery trade in certain markets, the maker of
gold foil-wrapped Easter bunnies said in a statement on Tuesday.
    "While the extent and duration of the situation are still
uncertain, the Group’s growth and financial outlook 2020 is no
longer valid," said the company based in Kilchberg near Zurich.
    The spreading coronavirus pandemic, which has infected more
than 770,000 people worldwide, has led governments to take
drastic measures, such as closing restaurants and stores,
including in Lindt's most important markets in Europe. 
    The group said, however, that e-commerce, home delivery and
pick-up services at some stores were gaining importance.
    It confirmed it wanted to grow organic sales by 5-7% in the
mid- to long-term and also maintained its dividend for 2019,
including a special dividend proposed for its anniversary.

 (Reporting by Silke Koltrowitz
Editing by Michelle Martin)
 ((silke.koltrowitz@thomsonreuters.com; +41 58 306 7454; Reuters
Messaging: silke.koltrowitz.thomsonreuters.com@reuters.net))