Barry Callebaut: Dynamic business growth, targets confirmed

Zurich / CH. (bc) Barry Callebaut AG, the world´s leading manufacturer of high-quality cocoa and chocolate products, has successfully continued its dynamic growth in fiscal year 2007/2008 ended August 31, 2008. Sales volumes rose 10,1 percent to 1’166’007 tonnes, driven by additional business with existing and new customers. Sales revenue increased strongly by 17,3 percent to 4,8154 billion CHF, mostly due to higher volumes and partly due to higher raw material prices. Excluding cocoa price and exchange rate effects, sales revenue rose 14,3 percent. The factors that slowed EBIT growth in the first semester did not reoccur. As a result of this and ongoing cost saving programs, EBIT growth accelerated in the second semester. For the fiscal year as a whole, operating profit (EBIT) rose 5,3 percent to 341,1 million CHF. Net profit for the year, including discontinued operations, increased 65,6 percent to 205.5 million CHF. Net profit from continuing operations rose by 1,0 percent to 209,1 million CHF. A loss on the sale of financial assets and higher financial expenses had a negative impact on net profit in fiscal year 2007/2008. Summary:

• Sales volumes rose 10,1 percent to 1’166’007 tonnes.
• Sales revenue increased strongly by 17,3 percent to 4,8154 billion CHF, as a result of higher volumes and higher raw material prices.
• Operating profit (EBIT) up 5,3 percent to 341,1 million CHF, acceleration in second semester compared to the same prior-year period.
• Net profit for the year, inclusive discontinued operations, up 65,6 percent to 205,5 million CHF, net profit from continuing operations rose 1,0 percent to 209,1 million CHF.
• Four-year financial targets 2007/2008 through 2010/2011 confirmed.
• Board of Directors proposes capital repayment of 11,50 CHF per share.
• James L. Donald, former President and CEO of Starbucks Corporation, proposed for election to the Board.

Patrick De Maeseneire, CEO of Barry Callebaut, said: «I am satisfied with the sales and profit growth generated in the past fiscal year, which was in line with our expectations. Thanks to our robust business model and our ability to adapt quickly to changing market conditions, we were able to offset record-high raw material costs and accelerate our operating profit growth in the second semester. Additionally, we continued to grow more than three times as fast as the global chocolate market. These achievements, especially in the face of a challenging market environment, underline the effectiveness of our growth strategy» (complete press release).