To quickly anticipate the numbers: things are going well at the chocolate manufacturer Lindt and Sprüngli. The company, based in Kilchberg, Switzerland, near Zurich, announced on Tuesday the results of the past financial year presented and was able to announce a jump in profits of almost 18 percent to more than 671 million francs. For holders of registered shares – this is the name of the premium version of a Lindt share, one of the world’s most expensive shares at more than 100,000 francs – the group is proposing a distribution of 1,400 francs, 100 francs more than last year. Even those who only have a participation certificate, i.e. a B share, should receive an increased dividend of 140 francs.
This is very good news for the shareholders of the world-famous chocolate company, which set a corresponding monument a few years ago with the sparkling “Lindt Home of Chocolate” in Kilchberg. In the “Chocolate Competence Center,” as the operators call the multi-story museum, you can follow the journey from a cocoa bean to the Lindt candy, including samples.
The press conference on the annual results also took place in the museum. At the presentation by CEO Adalbert Lechner and CFO Martin Hug, framed by gold bunnies and colorful Easter eggs, you could see for yourself: Lindt is currently bursting with self-confidence. Even at the Super Bowl three weeks ago, the largest sporting and, in fact, advertising event in the world, Lindt advertised its bestseller, the Lindor ball, with a specially produced spot – and paid a whopping six million francs for it. In view of an audience of millions, this was money wisely invested, assured CEO Lechner on Tuesday.
The good balance sheet of the 15,000-employee company is remarkable given the current market environment. The price of cocoa has been rising sharply for several years, by 62 percent last year and by more than 40 percent in 2024. In February, a ton of cocoa cost more than 5,000 euros on the raw materials exchanges – more than ever before. The reasons are bad weather and correspondingly poor harvests, especially in West Africa.
So far, Lindt has been able to cope with these price increases well, according to its own information, primarily through improvements in efficiency and higher consumer prices. The group also expects high cocoa prices for the next two years. This will continue to have to be passed on to customers, said CEO Lechner, but the cocoa content of the products will not be touched, “a clear no to that.”
The problem was recognized decades ago – little has changed
On Tuesday, the board members rather reluctantly addressed the allegations that Lindt and Sprüngli had to face in January: Swiss television SRF reported on cases of child labor in Lindt’s supply chain. This should have come as no surprise to cocoa experts. The problem of child labor in cocoa production has been known for decades, especially in the two most important producing countries, Ivory Coast and Ghana. Almost all chocolate manufacturers now have programs to combat child labor. Lindt is also trying this with its “Farming Program” aimed at sustainability, which has been in existence since 2008, and with child labor monitoring introduced in 2016.
However, none of the companies have been really successful so far. A 2020 report from the University of Chicago showed, that 1.56 million children still work on cocoa plantations in West Africa. That’s almost every second child who lives in rural cocoa-growing areas. The cocoa industry has set deadlines to eliminate child labor several times over the past decades. Each of them has still passed. “We take SRF’s research very seriously and immediately initiated investigations with our local partners,” said Lindt boss Lechner on Tuesday. But you simply can’t expect quick success on this topic. “The problem is systemic in West Africa. A solution is a matter of years, if not decades.”
It’s just that decades have passed since the industry first acknowledged the problem. Trade and development organizations therefore accuse cocoa companies of failing to adequately address the root of the problem: the ongoing extreme poverty of West African cocoa farmers. Companies are trying to make their cocoa more sustainable. But the premiums that farmers receive in programs such as “Rainforest Alliance” or “Fair Trade” are often far too small to really change anything about poverty.
At Lindt and Sprüngli, a good 72 percent of the cocoa products used bear a sustainability label. The majority comes from the company’s own sustainability program, a small part is Rainforest Alliance certified. By 2025, 100 percent of Lindt cocoa products should be sustainable. “We are sticking to this goal,” said finance and sustainability boss Martin Hug on Tuesday.
The company has also announced that it wants to start a pilot project from 2025: Lindt will pay 5,000 farmers a premium that is intended to raise their income to a level that guarantees a living. A good idea, but only for a small group. In total, the number of cocoa farmers with whom Lindt works is well over 100,000.