Callebaut grows 4.2%

13 Jul 2016

In the first 9 months of fiscal year 2015/16, Barry Callebaut grew its sales volume by +4.2% to 1,376,650 tonnes. The company said it accomplished this growth in a global confectionery market that decreased by 2.0%.

Callebaut grows 4.2%

In the first 9 months of fiscal year 2015/16, Barry Callebaut grew its sales volume by +4.2% to 1,376,650 tonnes. The company said it accomplished this growth in a global confectionery market that decreased by 2.0%. Sales revenue was up 11.4% in local currencies (7.8% in CHF), fuelled by a better product mix and higher ingredient prices

“Our sales volume continued its strong growth in the third quarter of the current fiscal year,” said Antoine de Saint-Affrique, CEO. “Our chocolate business performed particularly well, despite still sluggish demand for chocolate confectionery. At the same time, we continued to phase out less profitable contracts in the Cocoa business. All our key growth drivers contributed to the good volume momentum.”

The company said it achieved very strong volume growth in its chocolate business across all regions, fuelled by the company’s key growth drivers outsourcing, emerging markets and Gourmet & Specialties. Both the Food Manufacturers (+8.3%) and the Gourmet & Specialties businesses (+11.4%) delivered solid contributions. In the Global Cocoa business, sales to third parties were intentionally reduced by phasing out less profitable contracts, leading to a 7.8% decrease in the sales volume.

“As anticipated at the beginning of the fiscal year, the market conditions remain challenging in the short-term,” said de Saint-Affrique. “In that context, we will continue to reduce sales of cocoa products to third parties by phasing out less profitable cocoa agreements, which is impacting short-term growth. Overall, and looking into the next fiscal year, we have a healthy portfolio. Based on the disciplined focus on our ‘smart growth’ approach, i.e. a balance between volume growth, enhanced profitability and free cash flow generation, we confirm our mid-term guidance.”