Barry Callebaut sales volumes rise 8 percent, boosted by European and US performance

636590303851101596choc barry.jpg

11 Apr 2018 --- Swiss chocolate maker Barry Callebaut has reported a sales volumes increase of 8.0 percent in the first half of the company’s fiscal year 2017/18 results, which is significantly above the global chocolate market growth rate of +2.5 percent, helped by a strong performance in Europe and accelerating growth in the Americas.

All key growth drivers supported the strong volume growth: Gourmet & Specialties (+7.1 percent), Outsourcing (+8.1 percent) and Emerging Markets (+11.0 percent), as well as the gradual recovery in market demand. Sales revenue declined by -1.8 percent in local currencies (+0.3 percent in CHF) to CHF 3,549.9 million, mainly due to lower cocoa and other raw material prices, which, based on the company’s cost-plus model, are for the majority of its business passed on to customers.

Net profit jumped 33 percent to 173 million Swiss francs (US$180.9 million) on a recurring basis, helped in part by lower net finance costs.

Antoine de Saint-Affrique, CEO of the Barry Callebaut Group, commented on the results: “We had a very strong performance in the first six months of the current fiscal year, which was supported by all product groups and regions, as well as our key growth drivers. This resulted in the continued improvement of our profitability, driven by a favorable mix, operational leverage and a more supportive market.”

Gross profit amounted to CHF 553.0 million (US$576.6 million), corresponding to +15.5 percent in local currencies (+19.2 percent in CHF). The increase, which is significantly above volume growth, was fuelled by a good product and customer mix, and a more supportive market environment.

Looking ahead, CEO Antoine de Saint-Affrique said: “We continue to see healthy market dynamics. We have good visibility in our portfolio and together with the diligent execution of our ‘smart growth’ strategy, we feel confident to deliver on our 4-year guidance.”

Strategic milestones achieved
Expansion: The integration of the recent acquisitions of D'Orsogna Dolciaria in Italy, in October 2017, and Gertrude Hawk Ingredients in the US, in December 2017, further expanding Barry Callebaut’s value-adding Specialties & Decorations business, is well on track. Furthermore, to keep serving its customers optimally, Barry Callebaut invested in the expansion of its global chocolate production capacity in Region EMEA, Singapore and Region Americas.

Innovation: Since its launch in September 2017 by Barry Callebaut, the fourth type of chocolate: Ruby, is hitting the consumer market. The first consumer-facing Ruby products were introduced in Japan and South Korea. Barry Callebaut also announced the launch of Ruby for the Gourmet & Specialties customers under the Callebaut brand. The UK and Europe are gearing up for the launch of KitKat Ruby next week. Furthermore, inspired by wine, coffee and craft beer categories, Barry Callebaut introduced a sensory language and tasting ritual for chocolate in January 2018. These tools will enable brands and artisans to help consumers appreciate chocolate even more than they do today. Also, Barry Callebaut‘s sugar-reduced solutions are enticing customers and growing by double-digits.

Sustainability: Barry Callebaut launched its first Forever Chocolate pilot in Indonesia. This is the first in a series of five pilot programs planned in cocoa origin countries that are intended to test theories of change in the quest to accelerate impact in sustainable cocoa production. Barry Callebaut is partnering with Dutch Wageningen University & Research which is providing the Group with robust, scientific support to provide the baseline and analytical framework against which the outcomes can be assessed.

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Food Ingredients News

Food loss challenge: Rabobank’s start-up shortlist to help reduce food loss in Asia

15 Oct 2018 --- Rabobank is tackling the issue of food loss throughout the supply chain by focusing on holistic solutions and is running a competition where start-ups pitch their ideas to reduce food loss to food and agri industry leaders and investors. Through the Food Loss Challenge Asia, Rabobank aims to look for solutions to curb food loss from farm to market and is asking start-ups “Do you have an existing tech-based solution that reduces food loss from farm to market in Asia?”

Food Ingredients News

Chr. Hansen acquires dairy ingredient supplier Hundsbichler, raises organic growth targets

15 Oct 2018 --- Chr. Hansen is further expanding its enzyme production and presence into the traditional segments of specialty cheeses, with the newly announced acquisition of the assets of Austrian-based ingredient supplier Österreichische Laberzeugung Hundsbichler GmbH. Hundsbichler products are widely recognized for high quality and the purchase will enable Chr. Hansen to offer cheesemakers a second-to-none product portfolio in the animal rennet space, according to the company. Separately, the company announced that it had achieved all the overall financial targets set at the beginning of the year and raised its ambitions 9-11 percent organic growth for next year.

Food Ingredients News

What’s in a name? Most consumers understand the difference between real milk and alternatives, says new survey

12 Oct 2018 --- A new survey exploring how consumers comprehend the difference between milk and non-dairy alternatives reveals that most people are actually not confused at all. The International Food Information Council (IFIC) Foundation shows a low level of consumer confusion over nomenclature and basic differences between the two. This comes at a time when the US Food and Drug Administration (FDA) is considering a proposal to provide greater clarity on the appropriate labeling of plant-based alternatives.

Food Ingredients News

Avoiding climate chaos: “Reduce meat consumption and go flexitarian,” urges new research

11 Oct 2018 --- Dietary changes are needed to slow the impact of climate change, warns new analysis that says meat consumption should be dramatically reduced in favor of plant-based diets. Considerable differences in farming are needed to avoid the dangers of a warming planet and the challenges of feeding a growing population in a world with more drought, floods, and extreme heat. The in-depth analysis involving the University of Oxford and the Potsdam Institute for Climate Impact Research in Germany (among other researchers) assessed the food systems’ environmental impact, a significant driver of climate change.

Food Ingredients News

Sensibly sweet: Kerry’s simulator finds consumer-preferred balance between sweetening agent type, protein and calories

11 Oct 2018 --- Kerry, the Taste and Nutrition Company, has released an interactive consumer preference simulator to supplement their latest white paper on sweetening agents, “Sensibly Sweet.” The proprietary preference simulator utilizes US consumer research data to help industry professionals understand the consumer-preferred combination of three nutritional details – the type of sweetening agent, calorie count and protein count – across six product categories.

More Articles