Callebaut outperforms market

4 Nov 2015

Barry Callebaut has announced that it continues to significantly outperform the global chocolate market, with broad-based sales volume growth of 4.5%, accelerating significantly in Q4.

Callebaut outperforms market

Barry Callebaut has announced that it continues to significantly outperform the global chocolate market, with broad-based sales volume growth of 4.5%, accelerating significantly in Q4. Operating profit (EBIT) increased by 7.4% in local currencies (-0.3% in CHF), net profit was down 2.7% in local currencies (-5.9% in CHF).

“As we have done consistently for the last ten years, we managed to outpace the market and delivered solid, profitable growth,” said Antoine de Saint-Affrique, CEO of the Barry Callebaut Group. “After a slow start to fiscal year 2014/15, our volume growth accelerated, particularly during the last quarter, and reached 4.5% for the year, much in contrast to the global confectionery2 market. Sales volume growth was broadly based, driven by developed markets and supported by our key growth drivers Outsourcing, Emerging Markets and Gourmet. Despite the historically weak cocoa products market and excluding a significant negative currency translation effect, we improved our operating profit. This is the result of our continued focus on product mix, margins and costs. I congratulate the team on this robust performance.”

“We see significant growth opportunities ahead and we are committed to achieving consistent, above-market volume growth based on our three key growth drivers Outsourcing & Partnerships, Emerging Markets and Gourmet & Specialties,” he continued. “We will strike a balance between volume growth and enhanced profitability as well as free cash flow generation – in brief: ‘smart’ growth. However, we foresee a challenging fiscal year 2015/16 due to the current cocoa products market, which will temporarily affect our profitability. We are driving a number of strategic initiatives, such as the Cocoa Leadership project, to fully leverage our global scale in cocoa, optimize our footprint and strengthen our profitability in the mid-term. We adapt our mid-term guidance to 4-6% volume growth, and EBIT above volume growth in local currencies on average for the 3-year period 2015/16 to 2017/18, barring any major unforeseen events.”