Callebaut reports ”solid” results

11 Apr 2016

Barry Callebaut has reported its half year results. “We have achieved solid results despite very challenging market conditions,” said Antoine de Saint-Affrique, CEO of the Barry Callebaut Group. “Our volume growth shows a consistent, strong performance.

Callebaut reports ”solid” results

Barry Callebaut has reported its half year results.

“We have achieved solid results despite very challenging market conditions,” said Antoine de Saint-Affrique, CEO of the Barry Callebaut Group. “Our volume growth shows a consistent, strong performance. Our bottom-line reflects the predicted negative impact of the weak cocoa products market and a significant negative currency translation effect. Our focus on ‘smart growth’ is gaining traction. This is all very much in line with our expectations.”

During the first half of fiscal year 2015/16 (ended February 29, 2016), the company increased its sales volume by 4.5% to 933,327 tonnes, significantly outperforming a slightly improving but still weak global chocolate confectionery market1. This volume growth was driven by the chocolate business across all regions. All key growth drivers contributed positively. In the Global Cocoa business, sales to third parties were intentionally reduced and less profitable contracts are being progressively phased out.

Sales revenue grew by 11.7% in local currencies (5.6% in CHF) to CHF 3,424.3 million, driven by higher cocoa bean prices compared to last year and increased sales of higher value products.

Gross profit increased by 4.7% in local currencies (-1.9% in CHF) to CHF 437.9 million, largely in line with volume growth as the negative impact from the combined cocoa ratio was compensated by a good development on margins and a better product mix in the group’s chocolate business due to the strategic focus on this area.

Compared to the strong comparison base from last year, operating profit (EBIT) was almost flat at CHF 200.7 million (-0.3% in local currencies and -8.4% in CHF, due to a significant negative currency translation effect of CHF -17.9 million resulting mainly from the strength of the Swiss franc against the Euro and some emerging market currencies). As anticipated some restructuring costs related to the Cocoa Leadership project and additional investments in Sales and Marketing also had a negative effect.

Net profit was down -12.5% in local currencies (-18.5% in CHF) to CHF 107.9 million, affected by higher financial expenses, income taxes, and foreign exchange effects.

“As forecast, the year will remain challenging from a profitability point of view due to the current cocoa products market,” said de Saint-Affrique. “We will continue to focus on putting ‘smart growth’ into action and on transforming our cocoa business in order to restore its EBIT per tonne. We are pleased to see that our actions are beginning to bear fruit. We confirm our mid-term guidance.”<

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