Barry Callebaut continues sales growth in a tough economic environment

Barry Callebaut AG,Zürich, continued to grow in the first three months of fiscal year 2008/09 ended November 30, 2008, in a tough global economic environment. Good growth rates in the first two months of the quarter were offset by weak demand in the last month of the quarter. In November 2008, the entire chocolate industry faced weakening market conditions. The market experienced a drop in demand and customer ordering patterns became more short-term.


The financial crisis forced food manufacturers, artisans and retailers to reduce stocks in order to improve their balance sheets at the end of the year. Despite these extraordinary market dynamics and the company’s stricter credit policy towards customers, Barry Callebaut’s sales volumes for the first quarter rose 2.0% to 338,513 tonnes. Sales revenue increased by 7.2% in local currencies. Due to unfavorable exchange rate developments, in particular the appreciation of the Swiss Franc against the Euro, the Pound Sterling and the dollar currencies, sale revenue in the reporting currency (CHF) rose 0.7% to CHF 1,429.1 million.


Good growth in the emerging markets of Eastern Europe and Asia, together with market share gains in North America, helped offset lower sales in the mature markets of Western Europe. Patrick De Maeseneire, CEO of Barry Callebaut, said: “Barry Callebaut succeeded in growing its business in the first quarter despite challenging market conditions. After an unusually weak month of November we saw a marked pick-up in orders in December. Our expansion into high-growth markets is paying off. For the remainder of the year, we expect emerging markets and North America to perform well. In addition, our outsourcing volumes will accelerate as new production capacities in Mexico and Japan become available as of January 2009. Efficiency measures initiated in January 2008 and lower input costs have led to higher margins. While we expect customers and consumers, especially in the mature markets of Western Europe, to remain cautious, we believe that our strategy built upon geographic expansion, innovation and cost leadership positions us well to weather the tough economic environment. We therefore remain confident that we will reach our four-year financial targets."