02/11/2022 | Industry, International

Barry Callebaut achieves “profitable volume growth”

The Barry Callebaut Group achieved strong sales volume growth of 5.3% to 2.307 m tonnes in fiscal year 2021/22 (ended August 31, 2022).  

According to the company, the chocolate business reported strong volume growth of 5.9% (organic + 4.5%, excluding the first-time consolidation of ECC), clearly outpacing the flat underlying global chocolate confectionery market (+ 0.3%; source: Nielsen volume growth excluding e-commerce – 25 countries, September 2021 to August 2022, data subject to adjustment to match Barry Callebaut’s reporting period; Nielsen data only partially reflects the out-of-home and impulse consumption). Volume growth was supported by all Regions (Asia Pacific + 15.8%, Americas + 6.4%, EMEA + 4.3%) and all key growth drivers, Outsourcing (+ 4.8%), Emerging Markets (+ 7.9%) and a particularly strong performance by Gourmet & Specialties (+ 22.5%). Sales volume growth in Global Cocoa further normalized to 456,970 tonnes (+ 2.5%).

Peter Boone, CEO of the Barry Callebaut Group, said: “We are presenting a strong set of results, delivering profitable volume growth throughout the year, supported by all Regions and segments, particularly Gourmet & Specialties. Our broad geographic footprint and customer base, together with our sharpened business model and strong balance sheet, continued to build a solid foundation for growth.”

Sales revenue amounted to CHF 8.092 bn, up 14.6% in local currencies (+ 12.3% in CHF). The increase was impacted by the overall inflationary environment, which Barry Callebaut managed through its cost-plus pricing model for the majority of its business. Gross profit grew faster than sales volume and amounted to CHF 1.217 bn, up 8.4% in local currencies (+ 6.1% in CHF). Despite the lost volume due to the temporary stoppage of the Wieze factory, the contribution of volume to gross profit was “very healthy”. Operating profit (EBIT) recurring amounted to CHF 624.7 m, up 13.5% in local currencies (+ 10.2% in CHF), well ahead of volume growth. EBIT reported amounted to CHF 553.5 m, + 0.1% in local currencies (- 2.3% in CHF). Net profit recurring amounted to CHF 428.5 m, up 14.1% in local currencies (+ 11.4% in CHF) compared to prior year. The reported net profit for the year amounted to CHF 360.9 m, down 4.7% in local currencies (- 6.1% in CHF).