Barry Callebaut Sales Revenue Up 3.6%

18/01/07 Barry Callebaut AG, the world’s leading manufacturer of high-quality cocoa and chocolate products has announced its key sales figures for the first three months of fiscal year 2006/07 ended November 30, 2006. In addition, Barry Callebaut reconfirmed the decision to repay the outstanding 9¼% High-Yield Bond due 2010 in the amount of EUR 165 million at the earliest call date, which is March 15, 2007. Starting as of the current fiscal year, Barry Callebaut is also bringing its disclosure of financial results in line with other major food companies. The company will publish only key sales figures for the first and the third quarter but maintain the publication of detailed half-year and full-year results.

As of September 1, 2006, Barry Callebaut introduced a new organizational structure with a regional focus. This change results in a new reporting structure in line with the company’s main business regions, i.e. Europe, the Americas, Asia & Rest of the World. Operating results per business segment will still be given on a semi-annual basis as before.

Sales volumes for the Group went up to 316,506 tonnes, which corresponds to a strong organic growth of 5.7% (same prior-year period: 299,417 tonnes). Sales revenue grew by 3.6% to CHF 1,241.7 million (CHF 1,198.5 million). Patrick De Maeseneire, CEO of Barry Callebaut, said: “We were able to carry the strong fourth quarter growth of the past fiscal year into the first quarter of the current fiscal year; seasonal Christmas business was again very good. Our new organizational structure introduced as of September 1, 2006 will allow us to drive the intended geographic expansion and growth outside of Western Europe with the necessary determination. We are satisfied with our results for the first three months of fiscal year 2006/07.”

The Industrial business segment focuses on selling cocoa and chocolate products to industrial food processors and consumer goods manufacturers worldwide. Sales volumes were 219,998 tonnes, which represents an organic growth of 10.5% from the 199,147 tonnes for same prior-year period. Sales volumes of Cocoa products sold to third-party customers amounted to 36,025 tonnes (32,918 tonnes), which is a plus of 9.4%. Volumes were pushed in order to compensate for the margin decline caused by the deteriorating combined (cocoa) ratio (i.e. declining combined sales prices for cocoa butter and cocoa powder relative to the cocoa bean price). Sales volumes in the Food Manufacturers business unit were 183,973 tonnes, 10.7% more than in the same prior-year period (166,229 tonnes). Main drivers were increased outsourcing volumes from existing and new customers.

Sales revenue recorded in the Industrial business segment went up 8.4% to CHF 692.8 million, compared to CHF 639.2 million for the same prior-year period. Sales revenue in the Cocoa business unit grew 4.7% to CHF 117.3 million (CHF 112.0 million), as a result of higher sales volumes, despite the afore-mentioned lower average sales prices resulting from the lower combined (cocoa) ratio. The Food Manufacturers business unit increased sales revenue by 9.2% to CHF 575.5 million, up from CHF 527.2 million for the same prior-year period, benefiting from higher sales volumes as well as exchange rate effects.