Barry Callebaut: healthy growth and good profitability

According to the company, the chocolate business surpassed the pre-Covid levels of 2018/19 and with a volume growth of 6.5% clearly outpaced the underlying global chocolate confectionery market (+ 1.8%; source: Nielsen volume growth excluding e-commerce – 25 countries, September 2020 to August 2021, data subject to adjustment to match Barry Callebaut’s reporting period; Nielsen data only partially reflects the out-of-home and impulse consumption). Volume growth was supported by all regions (Asia Pacific + 8.7%, Americas + 7.9%, EMEA + 5.5%) and all key growth drivers, Outsourcing (+ 4.5%), Emerging Markets (+ 9.7%) and a particularly strong performance of Gourmet & Specialties (+ 18.3%). Sales volume in Global Cocoa improved in the second half of the year, reducing the decline for the year under review to 2.6%.

Sales revenue increased by 8.7% in local currencies (+ 4.6% in CHF) to CHF 7.208 bn. Gross profit grew faster than sales volume and amounted to CHF 1.147 bn, up 10.8% in local currencies (+ 7.9% in CHF) compared to prior year. The healthy volume growth, in particular in Gourmet & Specialties, had a positive impact on the mix.

Operating profit (EBIT) increased by 18.9% in local currencies (+ 15.4% in CHF) and amounted to CHF 566.7 m, impacted by a currency headwind of - CHF 17 m. EBIT growth significantly exceeded the volume growth, supported by all regions and a positive product and customer mix. The Group’s EBIT per tonne improved to CHF 259, an increase of 13.7% in local currencies (+ 10.4% in CHF). Net profit for the year grew by 24.2% in local currencies (+ 20.4% in CHF), compared to prior year, and amounted to CHF 384.5 m.

Peter Boone, CEO of the Barry Callebaut Group, said: “In fiscal year 2020/21, we have returned to our healthy growth path, with good profitability and strong cash flow generation. Growth outpaced the underlying markets, with all regions and key growth drivers contributing to the good results. I want to thank all colleagues at Barry Callebaut for these results. They are living our corporate values and are the foundation of our success in the past 25 years.”