Barry Callebaut Group reported sales volume of 578,694 t during the first three months of the fiscal year 2022/23 (ended on 30 November 2022). Volume was down −5.1 %, in an overall declining market (−2.8 %).

The chocolate business was down by −5.8 %, due to residual effects from the Wieze ramp-up and against a particularly strong comparator of +9.6 % in the same quarter in prior year. This affected all regions, in particular EMEA (−8.5 %). The group’s key growth drivers Emerging Markets (−3.8 %), Outsourcing (−0.1 %) and Gourmet & Specialties (−11.2 %) 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 %).

Sales revenue amounted to CHF 2,110.3 m, an increase of +7.2 % in local currencies (+3.8 % 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.

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 to 6 % volume growth and +8 to 10 % Ebit growth in local currencies, with further ROIC improvement.”