10/04/2024 | Industry, International

Barry Callebaut: solid performance in a challenging market

The Barry Callebaut Group reported sales volume growth of 0.7% to 1.1 m tonnes in the first six months of fiscal year 2023/24 (ended February 29, 2024). Volume was resilient at + 1.0% in the second quarter, in the context of a challenging operating environment.  

According to the company, Global Chocolate delivered 1.0% volume growth, ahead of a declining global chocolate confectionery market according to NielsenIQ (- 2.0%; NielsenIQ volume growth excluding e-commerce; 26 countries; August 2023 - January 2024; data subject to adjustment to match Barry Callebaut`s reporting period; NielsenIQ data only partially reflects the out-of-home and impulse consumption).

Food Manufacturers continued to be impacted by soft consumer demand in the context of the high-inflationary environment. Barry Callebaut was able to mitigate these pressures as its diversified business model allowed the Group to capture the consumer shift towards private label chocolate offerings. Gourmet & Specialties recorded high single-digit volume growth, with continued strong demand across regions, supported by BC Next Level initiatives. The largest contributor to Global Chocolate volume growth was Western Europe (+ 2.2%). Central and Eastern Europe (+ 3.5%) also saw a robust performance.

Sales revenue amounted to CHF 4.643 bn, up 19.6% in local currencies (+ 11.1% in CHF). Gross profit was CHF 663.1 m, up 8.6% in local currencies (- 0.2% in CHF). Operating profit (EBIT) recurring was solid and amounted to CHF 339.4 m, an increase of 7.9% in local currencies (- 2.6% in CHF) compared to the prior year.