Barry Callebaut report 6% sales growth

Sales volumes increased by 6% to 561,033 tonnes, up from 527,434 tonnes in the same prior-year period. Organic volume growth was 5%, the remainder was attributable to the first-time consolidation of AM Foods acquired in September 2004.

Barry Callebaut AG has reported a sales volume growth of 6% as well as a net profit (PAT) increase of 21%, or +7.5% on a like-for-like basis its results for the six-month period ended February 28, 2005. The good sales trend in the Industrial Business Segment was sustained. Reinforced by an early Easter holiday this year, the second quarter came to a strong end. It has to be noted that chocolate is a seasonal business with the majority of consumer purchases being made in the months before Christmas and Easter.

Sales volumes increased by 6% to 561,033 tonnes, up from 527,434 tonnes in the same prior-year period. Organic volume growth was 5%, the remainder was attributable to the first-time consolidation of AM Foods acquired in September 2004.

Volume growth and the first-time consolidation of AM Foods impacted sales revenue positively. However, this was more than offset by lower cocoa bean prices and negative exchange rate effects, leading to a sales revenue decrease of 1.5% to CHF 2,166.1 million. Eliminating these effects as well as the first-time consolidation of AM Foods, sales revenue growth was 3.5%.

Patrick De Maeseneire, CEO of Barry Callebaut, said: "Our traditional businesses with industrial and artisanal customers continue to be solid drivers of growth. We are very pleased with Barry Callebaut's organic volume growth of more than twice the global chocolate markets. In the remainder of the current fiscal year we will continue to put special emphasis on the turnaround of our European consumer business. This is of particular importance because we haven't achieved cost leadership yet and the negative economic forecasts for Germany present a threat to the progress made so far."

www.barry-callebaut.com