Barry Callebaut note Consumer Products recovery

As a result of higher sales volumes, slightly higher underlying cocoa bean prices, a better product mix in Consumer Products and positive currency effects, sales revenue grew faster than sales volumes, namely by 3.8% to CHF 1.2 billion.

111/01/06 Barry Callebaut AG, the world’s leading manufacturer of high-quality cocoa and chocolate products, announced today its results for the first quarter of fiscal year 2005/06 ended November 30, 2005. Sales volumes went up organically by 2% to nearly 300,000 tonnes. As a result of higher sales volumes, slightly higher underlying cocoa bean prices, a better product mix in Consumer Products and positive currency effects, sales revenue grew faster than sales volumes, namely by 3.8% to CHF 1.2 billion.

Sales revenue in the Cocoa business unit was affected by the substantially lower powder ratios as expected. In Consumer Products Europe unprofitable volumes were deliberately discontinued in the course of 2005, and this had an effect on the first quarter of the current fiscal year. Operating profit (EBIT), which serves as key indicator for operational performance as of the current fiscal year, rose 14.7% and, at CHF 100.1 million, crossed the CHF 100 million threshold, up from CHF 87.3 million. EBIT per tonne was CHF 334.3, up 12.4% compared to the same prior-year period. As a result of the refinancing transaction of August 2005, financial cost was reduced by 2.4%. Net profit (PAT) went up by 15.8% to CHF 63.9 million (prior-year period: CHF 55.2 million).

Patrick De Maeseneire, CEO of Barry Callebaut, said: “In our seasonally influenced business, the first quarter leading up to Christmas is usually the strongest for us. This year we had a particularly good start into the new fiscal year thanks to the solid growth in our businesses with industrial and artisanal customers and a positive contribution to the Operating profit (EBIT) from our European consumer business. This confirms the upward trend in our Consumer Products Europe business unit. Reasons for this recovery are a better product mix and better sales prices, despite the deliberate reduction in volumes last year and the effect of the historically high hazelnut prices, which will both still have an effect on second-quarter results.”