Barry Callebaut Beats Market Trends with Sales Increase

Barry Callebaut Beats Market Trends with Sales Increase

Wed, Apr 10th 2024

Barry Callebaut reports a 0.7% rise in sales volumes, selling 1.139 million tons of chocolate in the first half of the fiscal year.

Keystone/STEPHANIE LECOCQ

Barry Callebaut sold more chocolate in the first half of its fiscal year (September 2023 to February 2024). The company thus defied the chocolate market, which sold less overall.

Following the 0.4% increase in sales in the first quarter, sales volumes continued to rise in the second quarter. This resulted in an overall increase of 0.7 percent. Specifically, the chocolate producer sold 1.139 million tons of chocolate, as announced on Wednesday.

The company increased its turnover by 11.1 percent to 4.64 billion Swiss francs. This was mainly due to higher prices. This is because Barry Callebaut can largely pass on price changes – for example for raw materials such as cocoa or for energy and transportation – to its industrial customers. And the price of cocoa beans rose by an average of 81% in the reporting period, according to the press release.

On the other hand, the strong Swiss franc depressed sales somewhat. In local currency terms, turnover would have increased by 19.6 percent, according to the report.

Profitability declined. At 339.4 million Swiss francs, recurring operating profit (EBIT) was down 2.6 percent on the same period last year. The company is factoring out effects such as the costs of the BC Next Level savings program. Including these additional costs, EBIT would have been almost 50 percent down on the previous year.

At the bottom line, recurring net profit was 7.9% lower at 215.8 million. On an unadjusted basis, profit amounted to 76.8 million (-67%).

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