Barry Callebaut Outperforms Market, Signs Long-Term Supply Agreement with Bimbo

Barry Callebaut achieved broad-based growth in all regional markets. The company has also announced a partnership with the Latin-American food company Grupo Bimbo.

Jan 17 2012 --- Barry Callebaut AG, outperformed the global chocolate market with sales volume growth of 2.6% in the first three months of fiscal year 2011/12, ended November 30, 2011. Region Americas grew by double-digits whereas Region Asia-Pacific recorded slower growth and Region Europe slightly decreased. The Food Manufacturers Products business grew at +4.5% and the Gourmet & Specialties Products business increased volume by 3.4%. Quarterly sales revenue outpaced volume growth with a gain of +5.0% in local currencies, -4.1% after translation into Swiss francs.

Juergen Steinemann, CEO of Barry Callebaut, said: "After an expected soft start in the first two months of our fiscal year, we saw volume growth picking up in both our industrial as well as our Gourmet segment. Despite a challenging environment, we outperformed the market. We made excellent progress in our projects leading us further in the right strategic direction."

Sales volume in Region Europe decreased by 0.8% to 191,832 tonnes. The debt crisis in Europe negatively impacted consumer sentiment, especially in Southern Europe.

In Eastern Europe, sales volume continued to grow strongly - driven by Poland, Russia and the Baltic States. However, Eastern Europe could not fully compensate for the slight volume decrease in Western Europe. Overall, sales revenue in Region Europe increased by 1.2% in local currencies. In reporting currency, it declined by 8.2% due to negative currency impacts.

Barry Callebaut achieved broad-based growth in all regional markets and across all segments. Overall, sales volumes in Region Americas grew strongly at +17.6% to 91,763 tonnes. The Food Manufacturers Products business volume rose double-digit, driven both by national and corporate accounts. Barry Callebaut's Gourmet business strongly increased sales volume thanks to market share gains with local and global brands. Sales revenue grew 18.0% in local currencies and 6.9% in the reporting currency.

In related news, Grupo Bimbo SAB de CV, one of the largest food companies in Latin America, announced today the signing of a new long-term supply agreement for Bimbo's operations in Mexico. Under the terms of the agreement, Barry Callebaut will supply the plants of Grupo Bimbo with up to 32,000 tonnes of chocolate products annually for its domestic market, through the company's Mexican factories in Toluca and Monterrey. The projected volumes will start immediately.

As a result of the agreement, Barry Callebaut will invest approximately CHF 15 million (EUR 12 million / USD 16 million). 

In Mexico, as well as in many other countries in the Americas, Grupo Bimbo is the leader in the baking industry.

Juergen Steinemann, CEO of Barry Callebaut, said: "The new outsourcing agreement with Grupo Bimbo is a further landmark in opening up the promising market potential in Mexico. This agreement confirms the trend in outsourcing and our strategic focus on emerging markets."

The parties agreed not to disclose any further terms of the agreement.