Barry Callebaut: reports robust figures for FY 2009/2010

Zurich / CH. (bc) Barry Callebaut AG, the world´s leading manufacturer of high-quality cocoa and chocolate products, reported strong results for fiscal year 2009/2010 (ended August 31). With a sales volume growth of 7,6 percent, Barry Callebaut significantly outperformed the global chocolate confectionery market which was basically flat at a growth rate of 0,3 percent. All regions contributed to this growth. It was particularly strong in those regions where Barry Callebaut had made major investments in the past years: Americas (plus 15,6 percent), Asia-Pacific (plus 15,5 percent) and Eastern Europe (plus 11,1 percent). In terms of Product Groups, Gourmet + Specialities Products managed to accelerate their fast growth pace, recording a sales volume increase of 17,3 percent. Highlights at a glance:

• Significant sales volume growth: plus 7,6 percent
• Accelerated sales volume growth of Gourmet + Specialities business: plus 17,3 percent
• Sales revenue up 11,3 percent in local currencies (plus 6,8 percent in CHF)
• Strong operational result: Ebit plus 7,9 percent in local currencies (plus 5,6 percent in CHF)
• Excellent net profit development: plus 13,5 percent in local currencies (plus 10,9 percent in CHF)
• Financial performance targets confirmed and extended by one year through 2012/2013
• Proposal of a capital repayment of 14,00 CHF per share, up twelve percent compared to prior year
• Jakob Baer proposed for election as additional Board member

The strong Swiss Franc (CHF) – Barry Callebaut´s reporting currency – had an unfavourable impact on sales revenue, operational profit (Ebit) and net profit. In local currencies, sales revenue grew strongly by 11,3 percent (plus 6,8 percent in CHF) and reached 5’213,8 million CHF, driven by a higher sales volume and higher average raw material prices. Further operational efficiency gains, an improved capacity utilization as well as tight cost management programs could more than compensate for the anticipated unfavourable combined cocoa ratio, the adverse currency translation effect and fewer one-off gains than in the prior-year period. Operating profit (Ebit) growth in local currencies was 7,9 percent; in Swiss Francs, the increase was 5,6 percent up to 370,4 million CHF. As a result of lower financing costs, net profit grew even faster than Ebit; it rose to 251,7 million CHF or plus 13,5 percent in local currencies (plus 10,9 percent in CHF).

Juergen Steinemann, CEO of Barry Callebaut: «We have managed to deliver top results. Market conditions were challenging with a still rather fragile world economy, a flat global chocolate market, high raw material prices and important currency fluctuations. Our growth strategy based on the three pillars of expansion, innovation and cost leadership, together with our robust business model, have allowed us to cope well with all these market challenges. The main highlights of the past fiscal year were the successful negotiations of a major long-term global supply agreement with Kraft Foods signed in early September 2010, confirming the trend towards outsourcing and strategic partnerships; the opening of our chocolate factory in Brazil, the first one we have in South America; and the gratifying results of our increased focus on our Gourmet + Specialities business».

Info: Barry Callebaut reports full-year results for fiscal year 2009/2010 ended August 31, 2010; strong year – dynamic growth (complete press release).