Barry Callebaut: Accelerated top line growth

In the first half of fiscal year 2011/12 (ended February 29, 2012), Barry Callebaut AG increased its sales volume by 6.7% (699,058 tonnes) and thus again outperformed the worldwide chocolate confectionery market (Source: Nielsen September 2011 until January 2012. The global chocolate market was flat). First-half sales revenue grew faster than volumes, rising 10.4% in local currencies (+3.0% in CHF). Gross profit increased by 2.9% in local currencies (-3.9% in CHF).

In the second quarter, Barry Callebaut’s largest Region Europe returned to positive growth rates and reported a strong volume increase of 3.0%, compared to -0.1% for the respective chocolate market (Source: Nielsen September 2011 until January 2012. The chocolate market in Western Europe declined by 2.9%, whereas in Eastern Europe it grew 5.6%). In total, sales volume amounted to 361,987 tonnes. Overall, sales revenue in Region Europe rose by 4.7% in local currencies (-3.2% in CHF) to CHF 1,174.6 million.

The chocolate confectionery market in the U.S. decreased by 2.0%. Brazil’s market growth slowed to +5.5% (Source: Nielsen September 2011 until January 2012). Overall, Barry Callebaut maintained its strong double-digit growth momentum in Region Americas. Sales volumes grew strongly at 18.6% to 176,898 tonnes. In North America both Corporate as well as National Accounts and the Gourmet business showed double-digit growth rates. The business in South America more than tripled its volume. Sales revenue increased by 18.0% in local currencies (+10.2% in CHF) to CHF 548.4 million in the Region.

Chocolate markets in Asia continued to outperform all other regions, growing by +6.9% (Source: Nielsen September 2011 until January 2012). In the Region Asia-Pacific, Barry Callebaut again accelerated its growth pace. Sales volume rose by 7.9% to 28,514 tonnes.

In line with the company’s new strategic pillar Sustainable Cocoa, Barry Callebaut recently launched a cocoa sustainability initiative called ‘Cocoa Horizons’. The aim is to boost productivity on cocoa farms, increase quality and improve family livelihood in key cocoa producing countries. For this, the company will invest CHF 40 million over 10 years in farmer training, infrastructure and community education as well as health programs.

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