Barry Callebaut: 9-Month Key Sales Figures FY-2023-2024

Zurich / CH. (bc) Swiss Barry Callebaut Group, the world’s leading manufacturer of high-quality chocolate and cocoa products, reported sales volume of 1,710,241 tonnes, up +0.4 percent, during the first nine months of the fiscal year 2023/2024, that ended in Zurich on May 31, 2024. Sales volume was down -0.3 percent in the third quarter, in the context of a challenging market environment.

CFO Peter Vanneste: «In an unprecedented cocoa environment, we are pleased with achieving a slight increase in volume for the first nine months. Our focus on pricing and our resilient cost-plus model have also enabled us to deliver strong revenue growth. Looking ahead, the market faces further challenges, particularly from supply turbulence and cocoa-related price increases. As we navigate these market uncertainties, we successfully secured long-term financing at attractive rates. The BC Next Level program, launched last September, is also progressing as announced and on schedule. Additionally, we have launched the Future Farming Initiative, to build a high-tech and sustainable cocoa farming business.»

Global Chocolate saw +0.8 percent volume growth in an overall declining chocolate confectionery market according to Nielsen (-1.5 percent). Volume development for Food Manufacturers (-1.1 percent) remained suppressed as large global customers saw softer demand, partly offset by resilient performance for Private Label customers. Gourmet + Specialties delivered +10.9 percent volume growth with strong demand across most geographies and market segments. In the third quarter, the Gourmet business saw a positive impact from the phasing of customer purchases in a rising cocoa price environment.

Most Global Chocolate regions saw positive volume growth. Western Europe (+2.1 percent) was the largest contributor, with positive growth for Food Manufacturers and strong momentum for Gourmet. Volume growth in Asia Pacific, Middle East and Africa turned positive (+2.7 percent), with close to double-digit growth in the third quarter supported by improved performance in Indonesia. Latin America saw solid volume growth of +6.2 percent in the first nine months, led by Gourmet in Brazil. North America reported a sales volume decrease of -1.4 percent, as large Food Manufacturers saw lower demand, while regional accounts and Gourmet continued to see resilient growth. Volumes declined slightly in Central and Eastern Europe (-0.2 percent), with a slowdown in the third quarter impacted by lower volumes for certain large global and regional customers.

Global Cocoa saw a -1.6 percent decrease in sales volume, in the context of a significant increase in cocoa prices. The supply constrained environment impacted sales for cocoa butter and cocoa liquor, particularly in the third quarter. Demand for cocoa powder remained robust, with particular strength in India and Indonesia. Overall, global customers saw volume pressure, partly offset by solid momentum for regional customers.

Sales revenue amounted to CHF 7,319.9 million, an increase of +23.1 percent in local currencies (+16.3 percent in CHF), ahead of volume growth. Growth was driven by the significant increase in cocoa prices, which Barry Callebaut manages through its cost-plus pricing model for the majority of its business.

Refinancing measures

The significant increase in cocoa prices over recent months has heightened working capital requirements for the entire industry. In addition to the financing actions Barry Callebaut has already taken in the first half of the year, the Group took further steps to address this development in the third quarter. In May, the Group successfully re-entered the Swiss bond capital market issuing a CHF 730 million triple-tranche senior bond. The issuance consisted of a two-year tranche of CHF 240 million, a six-year tranche of CHF 270 million and a ten-year tranche of CHF 220 million. The Group also placed a new EUR 700 million bond in June, with a tenor of five years. These additional financing measures will increase flexibility and help to mitigate higher cash requirements in bean sourcing.

For additional information please read the Company’s PDF file below (183 KB):

20240824-BARRY-CALLEBAUT-9M2024.