Cocoa prices weigh on earnings
Ritter with slight sales growth
In view of high raw material costs for cocoa, chocolate manufacturer Ritter can look back on a difficult financial year. Although the family-owned company recorded slight growth for 2024 and increased its exchange rate-adjusted consolidated turnover to EUR 605 million (2023: EUR 561 million), it described its earnings situation as unsatisfactory.
Ritter achieved sales growth primarily in important foreign markets such as the UK, Italy and Austria as well as non-European markets such as the USA and China. However, the domestic market in Germany fell short of expectations. In the course of urgently needed price negotiations, Ritter Sport products were not available from some retailers for several weeks, which was reflected in a decline in sales. The export ratio of the company from Waldenbuch in Swabia thus rises to over 60 percent in 2024.
Ritter was one of the first major manufacturers to have to raise its selling prices to retailers in 2024 due to the massive rise in cocoa prices. A step that other companies have now also taken or announced. Nevertheless, Ritter CEO Andreas Ronken clarifies: "The current price structure does not reflect the entire cost situation."
After cocoa prices had recently fallen slightly, 2025 is starting again with record prices. Ritter therefore expects high volatility to continue in the current year and prices to remain at least at the current and therefore still high level. The family business is particularly concerned about the causes of this enormous price increase. Experts attribute the three consecutive failed harvests in West Africa to the effects of climate change, which are already being felt on a massive scale in cocoa-growing countries. Against this backdrop, Ritter does not currently expect harvest volumes to return to the long-term yield level and prices to fall noticeably again in the long term. As part of its cocoa programs, the chocolate manufacturer has been working for many years with local partners and, above all, with cocoa farmers to make cocoa cultivation more resilient through sustainable methods such as the establishment of agroforestry systems - a commitment to sustainability that also serves the long-term security of raw materials.
The successful development in many international markets makes it clear that the traditional German brand Ritter Sport is on its way to becoming a global brand. Within just a few years, Ritter has succeeded in being comprehensively listed in such a demanding market as the UK. The company has similarly ambitious goals for the world's largest confectionery market, the USA: "We want to have achieved a leading market position there in five to six years and be among the top five," explains Andreas Ronken. To this end, Ritter is implementing a new distribution strategy with a sales subsidiary founded at the beginning of 2024, which aims to expand the brand's presence at major retailers such as Walmart, Kroger and Ahold.
Current surveys show that Ritter is the most popular family business in Germany and that the Ritter Sport brand has an excellent image. "Ritter Sport fans remain loyal to our products. Their trust is an obligation for us. We will not compromise on quality and we will not cut back on sustainability either," emphasizes Ronken.
Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.
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