02/01/2018 | Ingredients
Barry Callebaut USA

Good product mix drives sales

 

In the financial year 2016/2017, cocoa and chocolate specialist Barry Callebaut increases its sales volume, sales revenue and profits. Net profit grows by more than 38 % to CHF 303 m.

By Dr Bernhard Reichenbach

The Barry Callebaut Group, the world’s leading manufacturer of high-quality chocolate and cocoa products, reports a successful 2016/17 fiscal year. At the annual ­results press conference that took place in the company’s Chocolate Academy Center in Zurich, CEO ­Antoine de
Saint-Affrique said: “I am delighted to announce a strong set of results. We saw a good performance across all our regions and product groups at top and bottom-line level. We keep delivering on our ‘smart growth’ agenda, which is reflected in the impro-vement of all our group key ­financial metrics.”
In fiscal year 2016/17, which ended 31 August 2017, the Barry Callebaut Group increased its sales volume by + 4.4 % to about 1.9 m t, which is well above the global confectionery market growth rate of + 0.1 %. 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.

 

Smart growth strategy will be continued

The intentional phase-out of less profitable cocoa contracts, amounting to 50,000 to 60,000 t, 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 + 1.9 % to CHF 6.8 bn, as a result of a  good product mix, offset by lower cocoa bean and cocoa product prices.
Gross profit increased by + 14.3 % and came in at about CHF 987 m. “This was mainly driven by volume growth, the product and customer mix, as well as the restored profitability of the Global Cocoa business,” explained de Saint-Affrique. Operating profit (EBIT) significantly increased by + 21.5 % and amounted to about CHF 488 m. Recurring operating profit, excluding a one-off effect of CHF 18 m from acquisitions, increased by + 17 % to CHF 470 m. Overall, the group’s­ ­recurring EBIT per tonne, excluding one-off effects from acquisitions, was at CHF 246, an increase of + 12.1 %. Net profit for the year increased by + 38.3 % to CHF 303 m. Recurring net profit increased by + 30.1%. This is a reflec-tion of the strong EBIT, a stable tax rate and lower financing costs.
In July 2017, Barry Callebaut announced the acquisition of D’Orsogna Dolciaria in Italy, thus expanding its ­value-adding Specialties & Decorations business and making the com­pany a leading supplier of decoration and inclusion products in Western ­Euro-pe. In September 2017, the company also announced the acquisition of Gertrude Hawk Ingredients in the U.S., adding specialized pro-duct know-how and product capabilities in the areas of shell molding, panning, enrobing, and solutions for shaped inclusions and peanut butter chips. Looking ahead, de Saint-Affrique said: “We will continue to deliver on our ‘smart growth’ strategy. A more supportive cocoa products market and slightly improving global demand for chocolate, together with the consistent execution of our strategy, give us confidence to extend our mid-term guidance to fiscal year 2018/19: We are targeting four to six percent ­volume growth, and EBIT above ­volume growth in local currencies on average for the 4-year period 2015/16 to 2018/19, barring any major unfore­seen events.”    •

 
 
 
 

http://www.barry-callebaut.com