Barry Callebaut: volume growth picking up, significant profit improvement

This contrasts with the 2.1% decline of the global chocolate confectionery market during the same period (source: Nielsen, August 2016 - January 2017). Growth was fueled particularly by outsourcing, i.e. the successful integration of the Halle factory in Belgium acquired from Mondelez International, but also Gourmet & Specialties and emerging markets contributed.

Sales volume in chocolate was up 3.5%, while the intentional phase-out of less profitable contracts in cocoa, now completed, led to a decline of - 5.0%. Sales revenue outpaced volume growth, rising by 2.5% in local currencies (+ 3.3% in CHF) to CHF 3.539 bn, due to a better product mix and partly offset by lower raw material prices.

Gross profit amounted to CHF 464.0 m, corresponding to + 6.2% in local currencies (+ 6.0% in CHF). The increase, which is significantly above the reported volume growth, was fueled by a good product and customer mix, the successful execution of the Cocoa Leadership program and a more supportive cocoa products market. Operating profit (EBIT) amounted to CHF 238.4 m, an increase of 19.3% in local currencies (+ 18.8% in CHF). Net profit was up 32.6% in local currencies (+ 31.7% in CHF) to CHF 142.1 m.