Barry Callebaut significantly grows volume and profit

The Barry Callebaut Group significantly increased its sales volume by 11.8% to reach 1.717 m tonnes in fiscal year 2013/14 (ended August 31, 2014). On a stand-alone basis, volume growth accelerated in the fourth quarter and reached 2.9% for the full year compared to the 2.3% volume growth of the global confectionery market (source: Nielsen, September 2013 – August 2014). According to the company, overall growth was boosted by the integration of the cocoa business acquired in June 2013, continued growth in emerging markets, Gourmet, and through strategic partnerships. All Product Groups contributed to the volume increase.

Sales revenue was up 20.1% (stand-alone + 10.0%) to CHF 5.866 bn, as a result of the strong volume growth and higher average cocoa bean prices compared to last year (Barry Callebaut passes on raw material prices to customers for the majority of its business). Gross profit grew 18.2% (stand-alone + 10.6%) to CHF 861.1 m. This significant increase in profitability was the result of an improved product mix (with relatively more Gourmet and specialty products) and better product margins in the industrial business. Overall, the combined cocoa ratio had a neutral effect on the Group’s cocoa profitability, with variances in the different regions.

Operating profit (EBIT) rose 21.4% (stand-alone + 5.6%) to CHF 416.2 m. This is a result of higher stand-alone gross profit and an operating profit of CHF 26.7 m (excluding transaction and integration related costs) contributed by the acquired cocoa business. The Group also strongly increased its EBIT per tonne performance by 8.5% to CHF 242.4 (stand-alone + 2.6% to CHF 254.8). Net profit for the year went up 14.5% to CHF 255 m, driven by the good EBIT performance, partly offset by higher financing and tax costs.

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