Barry Callebaut: reports results for H1 of 2009/2010

Zurich / CH. (bc) Barry Callebaut AG continued its robust growth with a sales volume increase of 7,8 percent in the first six months of fiscal year 2009/2010 – ended February 28 – against the background of a global chocolate market that was declining until the end of 2009 and only started to pick up as of early 2010. All regions contributed to this growth. Summary:

• Ongoing strong sales volume growth: up 7,8 percent or plus 47,616 tonnes
• Gourmet + Specialties products delivered excellent sales volume growth: plus 18,1 percent
• Sales revenue up 8,4 percent in local currencies (plus 4,5 percent in CHF)
• Solid operational improvements offset by lower combined cocoa ratio, adverse currency effects and fewer one-off effects: Ebit at 208,8 million CHF, down 1,7 percent in local currencies
• Net profit for the period at 145,7 million CHF, up 5,3 percent in local currencies (plus 1,6 percent in CHF)
• Global chocolate market bottomed out in the first quarter of the fiscal year; slight improvement in the second quarter
• Three-year financial targets for the period 2009/2010 through 2011/2012 confirmed

		Change in local currencies	Change in reporting currencies	H1 up to 2010-02-28	H1 up to 2009-02-28
Sales volume	Tonnes	–	+07,8%	659’536	611’920
Sales revenue	million CHF	+ 8,4%	+04,5%	2’656,5	2’543,1
Operating profit (Ebit)	million CHF	– 1,7%	-04,5%	208,8	218,6
Ebit/Tonne	CHF	– 8,8%	-11,4%	316,6	357,2
Net profit for the period	million CHF	+ 5,3%	+01,6%	145,7	143,4

The regions in which Barry Callebaut invested most in the past three years – Asia-Pacific, the Americas and Eastern Europe – showed the strongest growth rates (24,4 percent; 13,1 percent and 11,5 percent, respectively). In terms of product groups, Gourmet + Specialties recorded excellent sales volume growth of 18,1 percent. The strength of the Swiss Franc – Barry Callebaut´s reporting currency – versus most other major currencies had a negative impact on the Group´s half-year results. Sales revenue went up to 2’656,5 million CHF, which is an increase of 8,4 percent in local currencies and of 4,5 percent in CHF. Based on improved capacity utilization as well as lower energy, staff and maintenance costs, Barry Callebaut achieved solid operational improvements.

These, however, were offset by the lower combined cocoa ratio as anticipated (negative impact of approximately 23 million CHF) and unfavorable currency translation effects (approximately six million CHF). In addition, in the period under review there were fewer one-off gains than a year ago, when a non-recurring Ebit contribution resulting from the sale of the consumer products business in Asia was recorded (16,5 million CHF). Operating profit (Ebit) came in at 208,8 million CHF (minus 1,7 percent in local currencies; minus 4,5 percent in CHF). As a result of improved financing costs and tax optimization, net profit for the period increased to 145,7 million CHF, or plus 5,3 percent in local currencies (plus 1,6 percent in CHF).

Outlook

CEO Juergen Steinemann: «As we forecasted in November 2009, the first half of the current fiscal year was characterized by a challenging environment with the global chocolate market continuing to slightly decline, a very low combined cocoa ratio, record cocoa bean prices and severe currency translation effects. We have dealt with these external factors well. Against this challenging background I am more than pleased with our strong volume growth, which was supported by the further implementation of outsourcing contracts, and our operational achievements. I am particularly satisfied that the emerging markets in which we invested heavily in past years have developed well and that our high-margin Gourmet + Specialties business has recorded excellent growth, driven by our increased focus on this business, investments and our ability to exploit market opportunities, leading to market share gains. For the second half of the fiscal year we expect the global chocolate market to continue to slowly recover and the combined cocoa ratio to improve; the movements on currency markets are more difficult to predict. For the three-year period 2009/2010 through 2011/2012 we are confident that we will be able to achieve our average three-year financial targets and continue to significantly outperform the global chocolate market».

Info: complete news release in English – German – French (PDF).