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CLARA MOSCHINI

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Barry Callebaut, strong acceleration in sales growth in 2Q

Sales revenue increased by +6.0% to CHF 3,672.7 mln

The Barry Callebaut Group – the world’s leading manufacturer of high-quality chocolate and cocoa products – saw an acceleration in sales volume growth in the second quarter (+3.1%), leading to a +2.4% increase in sales volume to 1,046,695 tonnes in the first six months of fiscal year 2018/19. Sales volume in the chocolate business grew by +3.5%, which was partly offset by an anticipated decline of -1.7% in Global Cocoa.

Looking ahead, Antoine de Saint-Affrique, CEO of the Barry Callebaut Group said: “We have good visibility in our portfolio and expect a further acceleration in sales momentum. This makes us confident we can deliver on our current mid-term guidance. Going forward, we remain committed to achieving consistent above-market volume growth and enhanced profitability, which is why we renewed our mid-term guidance6 for the coming three fiscal years.”

The increase in the chocolate business was on top of a strong prior-year base and well above the underlying global chocolate confectionery market, which was growing by +1.5% according to Nielsen4. Region Americas (+5.8%) continued its healthy growth in the first six months of this fiscal year.

Sales revenue increased by +6.0% in local currencies (+3.5% in CHF), at a higher rate than volume growth, to CHF 3,672.7 million, for a large part related to rising raw material prices and a better product mix.

Gross profit amounted to CHF 584.8 million, up +8.5% in local currencies (+5.7% in CHF). This increase above volume growth was driven by a supportive market environment and an improved product mix.

Operating profit (EBIT) improved by +12.4% in local currencies (+8.9% in CHF), well ahead of volume growth, and amounted to CHF 301.4 million, mainly due to increased gross profit and improved cost management. As a result, EBIT per tonne grew by +9.8% in local currencies (+6.4% in CHF) to CHF 288.

Net profit for the period was up +18.8% in local currencies (+15.1% in CHF) to CHF 199.1 million. This was due to the strong increase in EBIT and lower income tax expenses, partially offset by higher net finance costs. Adjusted for the one-time effect on income tax expenses of CHF 10.1 million in prior year, related to tax reforms in Belgium and the US, the net profit increase in the first half of the current fiscal year was +12.3% in local currencies (+8.7% in CHF).


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