Barry Callebaut Net Profits up 23.8%

03 Jul 2006

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Net profit (PAT) went up by 23.8% to CHF 126.0 million (prior-year period: CHF 101.8 million). Consolidated sales volumes were practically unchanged in the period under review (+0.1%).

03/07/06 Barry Callebaut AG, the world’s leading manufacturer of high-quality cocoa and chocolate products has reported that the third quarter has had a positive impact on top-line and profitability growth in the first nine months of fiscal year 2005/06. Operating profit (EBIT) advanced by 14.6% to CHF 215.6 million for the current fiscal year, up from CHF 188.1 million in the prior year.

EBIT per tonne, the key indicator for operational performance, was CHF 272.5, up 14.4%. Net profit (PAT) went up by 23.8% to CHF 126.0 million (prior-year period: CHF 101.8 million). Consolidated sales volumes were practically unchanged in the period under review (+0.1%). Sales revenue, including above-average physical cocoa bean sales in the second quarter, was up 8.7%. Excluding the latter, sales revenue grew by 4.4%. The third quarter showed particularly strong growth with a plus of 3.8% in sales volumes and of 9.5% in sales revenue.

Profitability growth was largely driven by improvements in gross profit across all business units. On top of this, the Consumer Products Europe business unit reduced costs as a result of the successful restructuring process. Patrick De Maeseneire, CEO of Barry Callebaut, said: “I am very pleased with the strong third quarter results, which show positive developments in terms of volumes, revenue and profitability. The turnaround in the European consumer business has been achieved. As we pointed out at the end of the first semester, we see the effects of this year’s late Easter confirmed with some sales being shifted from the second to the third quarter in the Food Manufacturers and Consumer Products business units.”

The Industrial business segment focuses on selling cocoa and chocolate products to industrial food processors and consumer goods manufacturers worldwide. Sales volumes amounted to 529,664 tonnes, which represents an organic volume growth of 3.4% compared to the 512,072 tonnes in the same prior-year period.

Cocoa products sold to third-party customers decreased by 4.4% to 95,867 tonnes (100,298 tonnes for the same prior-year period). The main reason for this decline was the fact that Barry Callebaut has a growing need for cocoa butter and cocoa liquor as a result of the increased sales of chocolate products. Sales volumes in the Food Manufacturers business unit amounted to 433,797 tonnes, up 5.3% from 411,774 tonnes. Sales revenue recorded in the Industrial business segment grew by 14.0% to CHF 1,849.9 million compared to CHF 1,622.5 million in the same prior-year period.

In the Cocoa business unit sales revenue increased by 30.3% to CHF 485.8 million, up from CHF 372.7 million, driven by the significantly higher sales of cocoa beans in the second quarter. As mentioned earlier, reported sales volumes include only processed goods without any raw material sales. Adjusted for these extraordinary raw material sales, revenue of the Cocoa business unit decreased by 4.5% compared to the prior year.