Why home is always sweeter...
Sunrise returns to SIX, Lindt hits a home run and Peter Spuhler needs an umbrella
Dear Insider,
Home field advantage is never to be underestimated.
More often than not, when football teams take to the pitch, the side playing in its own stadium wins. No surprise…
The same could be said for home markets - where familiarity breeds the opposite of contempt: true love.
Lindt and Sprüngli felt such love this week as they whipped up a fanatic European fan base for its mega popular flavor - after first gaining traction in the Middle East.
Swiss telco Sunrise also enjoyed the glow of “coming home”. The move could have more menacing consequences for another home-grown giant, Swisscom.
Let’s wait and see…
Enjoy,
Ian
💡PS: Feel free to connect with me on LinkedIn and on X. Or simply reply to this email and share your feedback.
Thank you!
🌅 The sun also rises
It was a bright and sunny day at the SIX Swiss Exchange this week.
An old friend returned…
Sunrise, Switzerland's second-largest telecom provider, with CEO André Krause leading the move, re-listed its A-Series shares the stock market at 44.75 CHF per share - raising over 3 billion Swiss francs in the process.
It marked a unique milestone for Krause, who previously led the company through its initial public offering in 2015 and subsequent delisting in 2020.
The decision to go public again follows the 2020 acquisition of Sunrise by Liberty Global, after a failed attempt by Sunrise to acquire UPC Schweiz.
To attract investors, Sunrise offered substantial dividends, aiming to replicate the 90% return shareholders experienced during its previous public tenure from 2015 to 2021.
Post-IPO, Sunrise will be included in the Swiss Performance Index (SPI).
The Inside Look:
💡 Amid a general IPO drought, SIX has managed to coax Sunrise back into public markets. It is a major win for the Swiss Exchange - especially since it needs to strengthen its position vis-a-vis the dour European IPO market.
💡Speculation abounds as to whether Sunrise will use its new cash war chest to further attack market leader Swisscom. With its popular brand promoted by Roger Federer and Marco Odermatt, it has the juice to do so.
Please share your opinion…
I would be very interested to know what insights you would like to find in The Swiss Insider - leave your feedback here. Thanks!
🍫 Chocolate crazies
Switzerland knows how to do chocolate.
That much is a given.
What the country is not so good at is hyping itself up in “rock-star” fashion. Until now.
Swiss chocolatier Lindt has introduced a new confection known as "Dubai chocolate," featuring a blend of chocolate, pistachio cream, and knafeh—a crispy filo dough commonly used in Middle Eastern desserts.
This creamy chocolate creation, inspired by an Emirati startup's 2021 innovation, has gained rapid popularity thanks to an army of social media influencers.
The hype led to hundreds of people queuing in Aachen, Germany, for a limited release of 1,000 numbered bars, each priced at €14.99.
Yesterday, Lindt fans lined up outside the chocolatier’s Kilberg store where only 500 of the coveted chocolate bars were sold in the Lindt Museum for CHF14.95 ($16.80) each
Each bar numbered and bearing a certificate of authenticity.
The Inside Look:
💡Lindt is an example of a major Swiss company that has managed to internationalize with great success. Its ubiquity in major metropolitan areas and even local supermarkets in the USA have put it front and center.
💡By bringing a popular flavor back to its home market, Lindt is highlighting its international clout. Having managed to build hype and exclusivity, it can now profit from the buzz. The scarcity it managed to convey stands in stark contrast to the general availability of its products…literally everywhere.
🚝 When rain in Spain stops the trains…
Recent flooding in Spain has highlighted Spanish government incompetency.
No one expected it to hurt Switzerland.
And yet…
Peter Spuhler’s Stadler Rail announced that it has lowered its 2024 financial targets due to weather-related disruptions, supplier delays, and project setbacks.
Severe storms in Spain and flooding in Switzerland and Austria affected production, while delays in a major contract with Berliner Verkehrsbetriebe (BVG) impacted operations in Berlin.
These issues will reduce the EBIT margin by up to 2 percentage points, falling below the initial target of over 5%, and delay some revenues to 2025.
Stadler has suspended financial forecasts for 2025 and 2026, with a recovery plan under development.
It’s a rough ride for big corporations in Switzerland whose names start with “S”… (See “Do not steel” in The Bonus below…)
The Inside Look:
💡 Heavy industry in Switzerland has great “long-tail” effects for other suppliers. If European markets continue to slow and production delays hit the Stadler’s profits, other SMEs may suffer.
💡Peter Spuhler has played an outsized role in both Swiss politics and Swiss industry. His voice in the upcoming debate about Swiss-EU relations will be critical - and given his right-wing background, he may well add a critical voice to bilateral agreement that would impose more rules. At the same time - his Stadler Rail may be too Europe-dependent to take the risk.
A chart is worth…
The stock price of Switzerland’s premier chocolatier Lindt & Sprüngli has held steady since its public listing on the LSE in February 2018.
There is more!
I also compile focused lists of the most important businesses in Switzerland - family office firms, banks and law firms in crypto, venture capital funds and more.
Check it out - and if you find it helpful, feel free to share! 👍🏻
The Bonus
✂️ Saving and cutting - Rule changes to 3rd pillar savings accounts (like US IRAs) will allow voluntary, tax-free “buy-ins” beginning next year. Some worry it will further cut into tax income for the Swiss state. (Link)
🏭 Do not steel - As difficulties continue for Swiss Steel and others in Switzerland, politicians and economic leaders begin to call for government intervention. Swiss Steel has already announced 800 layoffs. (Link)
🚜 Farmer fans - A hyper-realistic farming simulator game, created by two Swiss entrepreneurs, has become a popular hit. Players can use over 400 different tractors from 160 brands to work their farms. (Link)