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Callebaut sees “significant” profit rise

2 Apr 2015

Barry Callebaut has reported its results for the half year. The company notes that sales volume is picking up, rising by 2.0% (+3.9% in Q2), and claiming that it is outperforming a currently weak global chocolate confectionery market (-1.5%) Profit increase was described as “significant” with EBIT up 8.7% (+13.0% in local currencies), net profit […]

Callebaut sees “significant” profit rise

http://www.dreamstime.com/royalty-free-stock-image-swiss-francs-image29595196Barry Callebaut has reported its results for the half year. The company notes that sales volume is picking up, rising by 2.0% (+3.9% in Q2), and claiming that it is outperforming a currently weak global chocolate confectionery market (-1.5%)

Profit increase was described as “significant” with EBIT up 8.7% (+13.0% in local currencies), net profit up 10.7% (+16.3% in local currencies).

“As forecasted, we had a good second quarter after a slow start to the year,” said Juergen Steinemann, CEO of the Barry Callebaut Group. “Our volume growth accelerated, much in contrast to the currently weak global chocolate confectionery market. All growth drivers contributed to our growth, especially outsourcing & partnerships and Gourmet. Our business in our main regions Western Europe and Americas performed particularly well. Despite a weak cocoa products market and a negative currency translation effect, we significantly improved our profitability thanks to our continued focus on product mix, margins and cost management.”

From a regional perspective, volume growth was said to be particularly good in the group’s main regions Western Europe and Americas. Volume growth further benefited from a strong performance of the two global Gourmet brands Callebaut and Cacao Barry, boosting overall sales volume in the Gourmet & Specialties Products business significantly by 6.0%.

Sales revenue grew by 11.6% (+14.5% in local currencies) to CHF 3,244.2 million, driven by higher cocoa bean prices compared to last year and increased sales of higher value products.

Gross profit went up 5.8% (+9.5% in local currencies) to CHF 446.2 million as a result of a more favourable product mix (more focus on specialty products and Gourmet). Overall, though, the combined cocoa ratio had a negative impact on the profitability of the Group’s cocoa processing activities.

“We expect sales volume growth to further accelerate in the second half of our fiscal year, supported by all growth drivers,” said Steinemann. “Our focus on product margins and cost control will drive further profitable growth, which will help to offset the challenging cocoa market. Subject to the expected negative currency translation impact on our bottom-line, we confirm our mid-term targets.”