Zurich / CH. (bc) Swiss Barry Callebaut Group, the world’s leading manufacturer of high-quality chocolate and cocoa products, announced its financial results for the first 3 months of Fiscal Year 2017/2018 up to November 30, 2017. CEO Antoine de Saint-Affrique said: «We had a strong start to the new fiscal year, with significantly above market growth. I am pleased to see that our increase in volume is broad-based, with positive contributions across all regions and good momentum amongst all key growth drivers».
Q1 2017/2018 Group Key Sales Figures
| Change | Change | Q1 up to 2017-11-30 | Q1 up to 2016-11-30 | |
| in local currencies | in CHF | |||
| Sales volume in Tonnes | 8.0 percent | 532’165 | 492’931 | |
| Sales revenue in million CHF | (3.2 percent) | (0.7 percent) | 1’872.2 | 1’885.8 |
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The Barry Callebaut Group, the world’s leading manufacturer of high-quality chocolate and cocoa products, achieved strong sales volume growth of +8.0 percent to 532’165 tonnes during the first three months of fiscal year 2017/2018 (ended on November 30, 2017). During the same period, the global chocolate confectionery market grew +3.1 percent1. Volume growth was fueled by all Regions and Product Groups. All the key growth drivers contributed to the market outperformance, Gourmet + Specialties (+8.9 percent), Emerging Markets (+11.1 percent) and Outsourcing (+8.1 percent). Sales revenue for Barry Callebaut amounted to CHF 1’872.2 million, a slight decline of -0.7 percent in CHF (-3.2 percent in local currencies) versus prior year. This is mainly due to the impact of lower cocoa prices and other lower raw material prices, which, based on the company’s cost-plus model, are for the majority of its business passed on to customers.
Outlook
Looking ahead, CEO Antoine de Saint-Affrique said: «We have good visibility on our sales portfolio and expect the market recovery to continue. This, along with the diligent execution of our ‘smart growth’ strategy, gives us the confidence that we are on track to deliver on our 2018/19 mid-term guidance».
Strategic milestones in the first three months of fiscal year 2017/2018
Expansion: Barry Callebaut completed the acquisition of D’Orsogna Dolciaria in Italy, October 2017, and Gertrude Hawk Ingredients in the U.S., December 2017, further expanding Barry Callebaut’s value-adding Specialties + Decorations business. Furthermore, to keep serving its customers optimally, Barry Callebaut announced investments to increase its chocolate production capacity globally and in particular in Western Europe over the course of the coming year. In addition, Barry Callebaut is planning to build a global Center of Expertise for its Decorations business in Halle to co-develop decorations with customers and technologies with third parties.
Innovation: Barry Callebaut unveiled the fourth type of chocolate, Ruby chocolate, September 2017. Using a unique process, the company unlocked the intense new flavor and reddish color tone naturally present in Ruby cocoa beans. No berries, berry flavors or coloring are added. Japanese Kitkat was the first consumer brand in the world to launch, on January 19, a Ruby chocolate version. In addition, partnering with the start-up company Solo Gelato, Barry Callebaut announced its intention to launch a novel capsule system for instant-fresh ice cream. This product will be released on the global market in the second half of 2018.
Sustainability: December 2017, Barry Callebaut published its Forever Chocolate progress report 2016/2017. The company worked globally with over 157’000 farmers on good agricultural practices. Approximately 36 percent of all cocoa and 30 percent of other chocolate ingredients were sustainably sourced in fiscal year 2016/2017. Barry Callebaut has further developed its Farm Services program, which offers cocoa farmers products and services that help improve their productivity. In Ivory Coast, participating cocoa farmers experienced on average a productivity increase of +23 percent per hectare of farmland. November 2017, Barry Callebaut was one of the signatories of the landmark Cocoa and Forests Initiative’s Frameworks for Action, uniting governments, industry and NGOs to eradicate deforestation from cocoa production in Côte d’Ivoire and Ghana.
