Barry Callebaut: Q1 Results Fiscal Year 2022-2023

Zurich / CH. (bc) Swiss Barry Callebaut Group, the world’s leading manufacturer of high-quality chocolate and cocoa products, reported sales volume of 578,694 tonnes during the first three months of the fiscal year 2022/2023 – ended on November 30, 2022. Volume was down -5.1 percent, in an overall declining market according to Nielsen (-2.8 percent). The chocolate business was down by -5.8 percent, due to residual effects from the Wieze ramp-up and against a particularly strong comparator of +9.6 percent in the same quarter in prior year. This affected all Regions, in particular EMEA (-8.5 percent). The Group’s Key Growth Drivers Emerging Markets (-3.8 percent), Outsourcing (-0.1 percent) and Gourmet + Specialties (-11.2 percent) had a slow start. Excluding the delayed impact due to the Wieze ramp-up, Gourmet + Specialties volume would have been flat against a record high comparator (+33.8 percent).

Sales revenue amounted to CHF 2,110.3 million, a nominal increase of +7.2 percent in local currencies (+3.8 percent in CHF), clearly higher than volume growth. The increase was driven by higher raw material prices and the inflationary environment, which Barry Callebaut manages through its cost-plus pricing model for the majority of its business, and positive mix components.

Chief Executive Peter Boone: «With Wieze fully operational since end of October and against a strong comparator, we had, as expected, a slow start to the year. In markets where Gourmet products were widely available, we continued to win. We are committed to achieve our current 3-year mid-term guidance in this final year, based on our broad product portfolio and broad geographic and customer base.»

Strategic milestones in the first three months of FY 2022-2023

Expansion: Barry Callebaut announced in December 2022 the next phase in the expansion of its Chatham factory in Ontario, Canada. The investment includes both liquid and molding lines, as well as enhanced capabilities for the production of dairy-free compound to accommodate growing customer demand for plant-based indulgence. These investments will enable Barry Callebaut to continue to drive long-term growth in North America.

In November 2022, Barry Callebaut announced the groundbreaking of its new chocolate and compound factory in Neemrana, about 120 km southwest of Delhi, its third manufacturing facility in India. Upon completion of the factory, India will become Barry Callebaut’s largest chocolate manufacturing footprint in Region Asia Pacific.

Cost Leadership: In January 2023, Barry Callebaut celebrated the official opening of its Business Excellence Center (BEC) in the Greater Kuala Lumpur Area, Malaysia. The Business Excellence Center bundles shared services in Finance and other corporate services, such as Customer Service and Information Technology, for Region Asia Pacific. Together with the existing Shared Services Center in Lodz, Poland, this further increases operational efficiency and strengthens the Group’s cost leadership.

Sustainability: In December 2022, Barry Callebaut published its 6th Forever Chocolate progress report, presenting the achievements on its journey to make sustainable chocolate the norm. The Group continued to scale up its activities by partnering with customers as well as societal and industry stakeholders to create tangible impact on the ground. One of its key achievements in the past fiscal year was that with the support of its customers, Barry Callebaut increased the proportion of products sold containing 100 percent sustainable cocoa or chocolate to one in two products. The full report can be accessed here.

Barry Callebaut has been recognized for leadership in corporate transparency and performance on forests by the global environmental non-profit organization CDP for the second year in a row. Barry Callebaut is one of only 25 high-performing companies that achieved an ‘A’ rating, out of nearly 15,000 companies. CDP’s annual environmental disclosure and scoring process is widely acknowledged as the gold standard for corporate environmental transparency and action.

Looking ahead, CEO Peter Boone said: «We expect a more back-end loaded year with improvements in the coming quarters as the Wieze factory is fully back on stream and Gourmet products are more widely available. Our consistent long-term growth strategy and its successful execution give us the confidence to issue a new 3-year mid-term guidance for 2023/24 to 2025/26 focusing on accelerated value creation. The new guidance consists of on average +4-6 percent volume growth and +8-10 percent Ebit growth in local currencies, with further ROIC improvement.»

For additional information please read the company’s PDF file below (176 KB):


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