Chocolate Sales Bounce Back for Barry Callebaut
13 Jul 2017 --- Confectioners Barry Callebaut has seen sales revenue spike 2.9 percent driven by a strong growth for chocolate. The Swiss company has also reported a 2.8 percent increase to 1.4m tons in sales volumes in the first nine months of this financial year, ending on May. Meanwhile sales growth has gone up 5.5 percent in the last three months.
Antoine de Saint-Affrique, CEO of the Barry Callebaut Group, said this is down to the company’s “healthy chocolate portfolio”.
“We maintained good volume growth momentum and managed to outperform the market once again. We continue to consistently execute our ‘smart growth’ strategy,” he says.
Group Key Sales Figures
Barry Callebaut Group says it achieved this growth in a global chocolate confectionery market that declined by -0.6 percent over the last nine months, but recently bounced back with a growth of +2.3 percent during the last three months.
It says that this momentum was supported by Barry Callebaut’s key growth drivers gourmet & specialties (+11.6 percent), outsourcing (+9.7 percent) and emerging markets (+3.3 percent).
For the first nine months, the intentional phase-out of less profitable cocoa contracts weighed on overall volume development, but sales volume in global cocoa for Q3 was back at the same level as the prior-year period.
The phase-out of these contracts, amounting to 50,000-60,000 tons overall, has now been completed, according to the group.
Sales revenue increased by +2.9 percent in local currencies (+3.7 percent in CHF) to CHF 5,193.5 million, in line with volume growth and a better product mix, offset by lower cocoa bean prices.
Healthy Outlook with Good Momentum
“‘Smart growth’ will continue to be at the heart of our strategy execution. This means driving above-market volume growth, enhanced profitability and free cash flow generation,” adds De Saint-Affrique.
“The phase-out of less profitable cocoa contracts is now completed; we continue to see a healthy portfolio and expect the good momentum to remain. On this basis we confirm our mid-term guidance.”
Strategic Milestones
Barry Callebaut recently opened a new Chocolate Academy in Milan, Italy and Mexico City and invested in four existing Asian academies.
In addition the company also launched a number of products over the past nine months, including Callebaut ChocoGelato, a chocolate base to create ‘gelateria’ style chocolate products and Snow-Melt, a fast-melting chocolate filling with a firm texture which can be used in various chocolate applications such as pralines.
It also launched a new range of chocolate and fruit fillings with low water activity for confectionery and bakery creations. Furthermore, La Morella Nuts extended its portfolio with a new range of organically grown Mediterranean nuts.
