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  08/11/2017 | Industry, International

Barry Callebaut: sales volume significantly above the market growth

The Barry Callebaut Group increased its sales volume by 4.4% to 1.914 m tonnes in fiscal year 2016/17 (ended August 31, 2017), which is well above the global confectionery market growth rate of 0.1% (source: Nielsen, August 2016 to September 2017 – 26 countries). According to the company, the fourth quarter saw an acceleration to 9.2%. The good momentum was supported by all key growth drivers: Gourmet & Specialties (+ 9.7%), Outsourcing (+ 9.3%) and Emerging Markets (+ 5.9%), further helped by an improved market environment. The intentional phase-out of less profitable cocoa contracts, amounting to 50,000-60,000 tonnes overall, was completed; sales volume growth in Global Cocoa for the year was 0.4%. At the same time, the Chocolate business grew by 5.6% with a strong performance in all regions.

Sales revenue was up 1.2% in local currencies (+ 1.9% in CHF) to CHF 6.805 bn, as a result of a good product mix, offset by lower cocoa bean and cocoa product prices. Gross profit increased by 14.6% in local currencies (+ 14.3% in CHF) and came in at CHF 986.7 m, mainly driven by volume growth, the product and customer mix, as well as the restored profitability of the Global Cocoa business.

Operating profit (EBIT) significantly increased by 22.3% in local currencies (+ 21.5% in CHF) and amounted to CHF 488.2 m. Recurring operating profit, excluding a one-off effect of CHF 18.1 m from acquisitions, increased by 17.8% in local currencies (+ 17.0% in CHF) to CHF 470.1 m. Overall, the Group’s recurring EBIT per tonne, excluding one-off effects from acquisitions, was at CHF 245.6, an increase of 12.9% in local currencies (+ 12.1% in CHF). Net profit for the year increased by 39.6% in local currencies to CHF 302.9 m (+ 38.3% in CHF). Recurring net profit increased by 31.3% in local currencies (+ 30.1% in CHF). According to Barry Callebaut, this is a reflection of the strong EBIT, a stable tax rate and lower financing costs.

www.barry-callebaut.com