Barry Callebaut Reports Continued Growth

06/11/07 Cocoa and chocolate product supplier Barry Callebaut has said reported continued sales and profit growth in the fiscal year 2006/7 closed as of August 31, 2007. Sales volumes rose 8.5% to 1,059,200 tonnes, with net profit from continuing operations up 9.1% to CHF 207.0 million Following the signing of an agreement to sell Brach’s in the U.S., the business has been classified as discontinued business and prior-year figures have been restated accordingly. To eliminate distorting effects on key figures, physical bean sales are excluded from sales revenue, which only shows processed goods sold.

In fiscal year 2006/07, the company’s sales volumes rose strongly by 8.5% to 1,059,200 tonnes, with all regions contributing to the increase. Region Europe registered the strongest volume growth with a 10.1% increase. Group sales revenue1 grew significantly by 10.6% to CHF 4,106.8 million, driven by a strong performance in the Food Manufacturers business unit. Operating profit (EBIT) increased to CHF 324.0 million, or a 9.8% rise, reflecting a good performance of all regions and business units. The EBIT improvement was achieved despite the earlier communicated deterioration of the combined (cocoa) ratio and a challenging raw material cost environment, which together had a negative impact of approximately CHF 30 million on the company’s operating result. However, Barry Callebaut’s business model allowed it to compensate the major part of higher raw material costs. Net profit from continuing operations went up 9.1% to CHF 207.0 million.

Patrick De Maeseneire, CEO of Barry Callebaut, said: “I am pleased with our results and our achievements in fiscal year 2006/07. We grew more than twice as fast as the global chocolate market. Food Manufacturers continued to be the driving force for volume gain and the Gourmet business had a very strong second semester. Our cost environment will remain challenging amid high raw material prices, but we have responded to these pressures by optimizing our cost structure and increasing sales prices. The major long-term supply agreements with 3 of the top 5 global confectionery makers have clearly positioned us as the outsourcing partner of choice in the food industry.”