Barry Callebaut to outperform the market in the next months

The Barry Callebaut Group, the world’s leading manufacturer of high-quality chocolate and cocoa products, saw sales volume growth picking up to +3.5% in the second quarter (first quarter -0.4%), leading to a topline growth for the first six months of fiscal year 2016/17 of +1.4% to 946,782 tons. This contrasts with the -2.1% decline of the global chocolate confectionery market during the same period (Nielsen, Aug 2016-Jan 2017).

"Markets are difficult everywhere, particularly in confectionery in the United States," Chief Executive Antoine de Saint-Affrique told reporters on a call on Wednesday, adding he expected to see an improvement in Europe this year and expected the good momentum for the company to continue. 

Growth was fueled particularly by outsourcing, i.e. the successful integration of the Halle factory acquired from Mondelez International, but also Gourmet & Specialties and emerging markets contributed. Sales volume in chocolate was up +3.5%, while the intentional phase-out of less profitable contracts in cocoa, now completed, led to a decline of -5.0%.

Then CEO underlined market's situation: “We keep delivering on our ‘smart growth’ agenda. Sales volume growth picked up in the second quarter of the current fiscal year, despite sluggish global demand for chocolate confectionery. We significantly improved our profitability as a result of our ongoing focus on product and customer mix and the successful implementation of our Cocoa Leadership program. At the same time, we continue to focus on free cash flow and returns."

Barry Callebaut, which says it makes one out of four chocolate and cocoa products consumed worldwide, confirmed its mid-term targets of 4-6% volume growth, with earnings before interest tax above volume growth in local currencies on average up to 2017/18.