Barry Callebaut reports strong profit growth

Barry Callebaut AG, Zürich, has announced results for the fiscal year 2004/05 ended August 31. Sales volumes went up 4% to 1,052,467 tonnes, sales revenue increased by 0.3% to CHF 4.06 bn. The first-time consolidation of AM Foods contributed a net amount of CHF 51.9 m to sales revenue.The restructuring program in Consumer Products Europe was intensified, certain unprofitable volumes in the German consumer business were deliberately discontinued during the course of the year. The consequent restructuring expenses of CHF 49m in cash and CHF 45m in impairments and write-downs on fixed and current assets were charged to the income statement for the fourth quarter. Excluding this one-time effect, operating profit before amortization (EBITA) went up by 6.4% to CHF 278.2 m. Net profit (PAT) strongly increased by 40.4% to CHF 162.3 m, partly due to a change in IFRS accounting standards. On a like-for-like basis, the increase of PAT was 20.2% to CHF 138.9 m on a pro forma basis. Including restructuring and impairment charges, stated net profit amounts to CHF 68.3 m.


CEO Patrick De Maeseneire commented on the prospects for the current fiscal year 2005/06: “We consider innovation in combination with cost leadership the two cornerstones of future profitable growth, complemented by geographic expansion. In October, we inaugurated our new chocolate factory on the U.S. West Coast; we are planning to build a new chocolate plant near Moscow, which will become operational in early 2007; and we are reviewing the acquisition of an existing, modern chocolate factory in China as well as options for our own cocoa processing capacities in Asia-Pacific. This expansion into high-growth markets will allow us to increase the share of sales generated in regions other than Western Europe and North America from 11% to 20% between now and 2010. In our industrial business we have a strong contract portfolio, and in Consumer Products Europe we are determined to return to profitability this fiscal year.”


The Board of Directors proposes to the Annual General Meeting that all Board members stand for re-election for another term of office of one year. Andreas Schmid, having served as Chairman for seven years, four of which as Chairman & CEO, expressed his desire to pass the Chairmanship on to Andreas Jacobs. The Board of Directors asked Andreas Schmid to assume the function of Vice Chairman
Stefan Pfander, Chairman Europe of Wm. Wrigley Jr. Company in Chicago, will be elected as a new Board member.