Barry Callebaut: Accelerated top line growth, significantly investing in the future
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Barry Callebaut AG /
Barry Callebaut: Accelerated top line growth, significantly investing in the
future
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Barry Callebaut - Half-year results, fiscal year 2011/12
* Growth in all Regions and across all Product Groups
* Sales volume up 6.7%; sales revenue up 10.4% in local currencies (+3.0% in
CHF)
* Investing in profitable growth while optimizing structures and processes
* EBIT decreased by 5.5% in local currencies (-12.5% in CHF)
* Growth targets confirmed[1]
Group key figures for the first half of fiscal year 2011/12 - from continuing
operations
--------------+----------------------------------------------------------------
| Change in %
| ---------------+-------------- Six months Six months up
| in local| in reporting up to Feb to Feb
| currencies| currency 29, 2012 28, 2011[2]
--------------+---------------------+------------------------------------------
Sales volume |Tonnes | 6.7 699,058 655,065
--------------+---------------------+------------------------------------------
Sales revenue| CHF m 10.4| 3.0 2,476.9 2,404.0
--------------+---------------------+------------------------------------------
Operating | CHF m (5.5)| (12.5) 175.1 200.2
profit (EBIT)| |
--------------+---------------------+------------------------------------------
EBIT per | CHF (11.4)| (18.0) 250.5 305.6
tonne | |
--------------+---------------------+------------------------------------------
Net profit | |
for the | CHF m (11.3)| (18.0) 121.8 148.6
period (PAT) | |
--------------+---------------------+------------------------------------------
Zurich/Switzerland, April 2, 2012 - In the first half of fiscal year 2011/12
(ended February 29, 2012), Barry Callebaut AG, the world's leading manufacturer
of high-quality cocoa and chocolate products, increased its sales volume by
6.7% and thus again outperformed the worldwide chocolate confectionery
market.[3] All Regions and Product Groups contributed to the volume growth,
which rebounded strongly in Q2 (+11.5%). First-half sales revenue grew faster
than volumes, rising 10.4% in local currencies (+3.0% in CHF). Gross profit
increased by 2.9% in local currencies (-3.9% in CHF). Operating profit (EBIT)
decreased by 5.5% in local currencies, -12.5% after translation into Swiss
francs. Significant investments in operating structures to support further
growth, ramp-up costs related to recent long-term partnership and outsourcing
agreements, investments in the growth of the Gourmet & Specialties Products
business as well as multiple capacity expansions led to higher operating
expenses, negatively impacting EBIT. Net profit from continuing operations
declined by 11.3% in local currencies (-18.0% in CHF) due to lower EBIT, higher
financing costs related to the bond placement in summer 2011 as well as a less
favorable tax mix.
Juergen Steinemann, CEO of Barry Callebaut, said: "After an anticipated slow
start in Q1, we regained momentum in Q2, in all Regions and across all Product
Groups. Once again, we outpaced the global chocolate market. Several major new
partnership deals were signed, confirming an important part of our business
model. In the last six months, we initiated selective investments in our future
growth. This temporarily affected our bottom-line results."
Region Europe - Volume rebound under challenging market conditions
In the second quarter, Barry Callebaut's largest Region Europe returned to
positive growth rates and reported a strong volume increase of 3.0%, compared to
-0.1% for the respective chocolate market[4]. Strategic customers as well as
specialties products drove growth. In total, sales volume amounted to 361,987
tonnes. Despite challenging market conditions in the southern European
countries, Western Europe significantly outperformed the underlying chocolate
market thanks to a strong volume acceleration in Q2. Eastern Europe again showed
double-digit growth, equally supported by the Food Manufacturers as well as
Gourmet & Specialties Products business. Overall, sales revenue in Region Europe
rose by 4.7% in local currencies (-3.2% in CHF) to CHF 1,174.6 million. Higher
factory and supply chain costs as well as investments in sales and promotion,
primarily in the Gourmet business, impacted operating profit (EBIT).Therefore
EBIT decreased by 12.2% in local currencies (-18.2% in CHF) to CHF 114.5
million.
Barry Callebaut closed the sale of its European Consumer Products business
Stollwerck in September 2011. This led to a non-recurring loss of CHF 31.7
million for the reported period.
In order to readjust the structures and processes after the sale of the Consumer
Products business, Barry Callebaut will spend approx. EUR 30 million (CHF 36
million) for a comprehensive reengineering project, called 'Spring', over the
next two years. The main focus of Project Spring is on Western Europe. It will
address all customer-oriented processes. After the implementation of this
project, the company expects yearly recurring efficiency gains of at least EUR
10 million (CHF 12 million).
Region Americas - Strong performance, top and bottom line
The chocolate confectionery market in the U.S. decreased by 2.0%. Brazil's
market growth slowed to +5.5%.[5] Overall, Barry Callebaut maintained its strong
double-digit growth momentum in Region Americas. Sales volumes grew strongly at
18.6% to 176,898 tonnes. In North America both Corporate as well as National
Accounts and the Gourmet business showed double-digit growth rates. The business
in South America more than tripled its volume. Sales revenue increased by 18.0%
in local currencies (+10.2% in CHF) to CHF 548.4 million in the Region. The
positive volume and revenue development also translated into an improved
operating result: Operating profit (EBIT) rose by 19.9% in local currencies
(+12.4% in CHF) to CHF 44.3 million. The Region continues to invest in its
footprint and structures to accommodate current and future growth.
Region Asia-Pacific - Accelerating growth with further potential
Chocolate markets in Asia continued to outperform all other regions, growing by
+6.9%.(5) In the Region Asia-Pacific, Barry Callebaut again accelerated its
growth pace. Sales volume rose by 7.9% to 28,514 tonnes. However, capacity
constraints in the Food Manufacturers Products business still limited the
opportunities for full growth potential. Recent and future capacity extensions
will offer additional growth potential in the Region Asia-Pacific. Overall, the
industrial business accelerated in Q2 driven by Corporate Accounts. The Gourmet
& Specialties Products business grew substantially at double-digit rates driven
by the two global brands Callebaut(®) and Cacao Barry(®). Sales revenue
increased by 5.5% in local currencies (+1.5% in CHF) to CHF 119.8 million.
Operating profit (EBIT) was positively influenced by the good volume growth and
improving margins. EBIT rose by 21.1% in local currencies (+16.3% in CHF) to CHF
15.7 million.
Global Sourcing & Cocoa[6] - Growth picking up
A good start to the cocoa crop 2011/12 as well as a well-stocked industry caused
cocoa terminal market prices to move continuously downwards during the reporting
period. Prices recently stabilized within the range of GBP 1,400 to 1,600 per
tonne yet with considerable intra-day volatility. Barry Callebaut expects the
cocoa price to move within the aforementioned bandwidth during the next few
months. Better-than-expected sugar crops in Russia and Brazil combined with
exports from India led to a surplus on the world sugar market. This put prices
under downward pressure in the first half of the period under review. With the
end of the Brazilian harvest and funds taking positions in the market, prices
increased slightly afterwards. The regulated EU sugar market remained in a
structural deficit with increased, historically high price levels. Sugar market
prices are expected to remain relatively firm and volatile until the new
Brazilian crop enters the market in May. Good production levels worldwide and
lower demand moved milk powder prices downwards to the long-term average levels.
Market prices for milk powder are expected to stabilize on a slight downward
trend for the rest of this fiscal year.
Sales volume of the segment Global Sourcing & Cocoa rose by 2.9% to 131,659
tonnes. Ongoing capacity expansions at existing factories and higher internal
cocoa powder demand initially led to lower sales to third-party customers.
Growth picked up again in Q2. Sales revenue rose by 17.0% in local currencies
(+10.4% in CHF) to CHF 634.1 million driven by high cocoa powder prices at the
time the business was contracted. Volume growth and a good combined ratio almost
offset the negative impacts from higher factory and supply chain costs. Overall,
operating profit (EBIT) declined by 0.8% in local currencies (-8.6% in CHF) to
CHF 33.9 million.
Other developments / Highlights
In the period under review, Barry Callebaut became Unilever's strategic long-
term supplier and innovation partner of choice. The company also signed an
outsourcing agreement with Grupo Bimbo, one of the largest food companies in
Latin America. Barry Callebaut entered into a joint venture with Indonesian P.T.
Comextra Majora, including the future construction of a new cocoa processing
facility in Makassar (Sulawesi). In addition, Barry Callebaut acquired two
companies: La Morella Nuts, a specialist in producing nut-based ingredients
based in Spain, and Mona Lisa Food Products, a leader in chocolate decorations
products in the U.S. Both companies will support the further growth of Barry
Callebaut's global Gourmet business.
In line with the company's new strategic pillar Sustainable Cocoa, Barry
Callebaut recently launched a cocoa sustainability initiative called 'Cocoa
Horizons'. The aim is to boost productivity on cocoa farms, increase quality and
improve family livelihood in key cocoa producing countries. For this, the
company will invest CHF 40 million over 10 years in farmer training,
infrastructure and community education as well as health programs.
In November, Barry Callebaut's Terra Cacao(TM) premium chocolate won two
prestigious innovation awards at the Food Ingredients Europe Fair (FiE) in
Paris. The awards are also the reward for several years of research in
developing Barry Callebaut's patented Controlled Fermentation method.
Outlook - Continue to invest for future growth
Juergen Steinemann on the outlook: "The economic environment in Western Europe
and North America remains fragile. Nonetheless, we are dedicated to investing
along the route of our four strategic pillars, Expansion, Cost Leadership,
Innovation and Sustainable Cocoa, paving the way for our future growth. With
this, we are confident of reaching our mid-term financial targets[7]."
***
For more detailed financial information see Barry Callebaut's Letter to
Investors 'Half-year results 2011/12': http://www.barry-
callebaut.com/documentation#c1212.
***
Financial calendar for fiscal year 2011/12 (September 1, 2011 to August
31, 2012):
------------------------------------------------------+------------------------
9-month key sales figures 2011/12 (news release) |July 5, 2012
------------------------------------------------------+------------------------
Full-year results 2011/12 (news release & conference)|November 7, 2012, Zurich
------------------------------------------------------+------------------------
Annual General Meeting 2011/12 |December 5, 2012, Zurich
------------------------------------------------------+------------------------
***
Barry Callebaut (www.barry-callebaut.com/):
With annual sales of about CHF 4.6 billion (EUR 3.6 billion/USD 5.0 billion) for
fiscal year 2010/11, Zurich-based Barry Callebaut is the world's leading
manufacturer of high-quality cocoa and chocolate - from the cocoa bean to the
finished chocolate product. Barry Callebaut is present in 27 countries, operates
around 40 production facilities and employs a diverse and dedicated workforce of
about 6,000 people. Barry Callebaut serves the entire food industry focusing on
industrial food manufacturers, artisans and professional users of chocolate
(such as chocolatiers, pastry chefs or bakers), the latter with its two global
brands Callebaut(®) and Cacao Barry(®). Barry Callebaut is the global leader in
cocoa and chocolate innovations and provides a comprehensive range of services
in the fields of product development, processing, training and marketing. Cost
leadership is another important reason why global as well as local food
manufacturers work together with Barry Callebaut. Through its broad range of
sustainability initiatives and research activities, the company works with
farmers, farmer organizations and other partners to help ensure future supplies
of cocoa and improve farmer livelihoods.
***
Media and Analysts'/Institutional Investors' conferences of Barry Callebaut AG
+---------+--------------------------------------------------------------------+
|Date: |Monday, April 2, 2012 |
+---------+--------------------------------------------------------------------+
|Location:|Barry Callebaut Head Office, Chocolate Academy, Groundfloor, |
| |Pfingstweidstrasse 60, Westpark, 8005 Zurich/Switzerland |
+---------+--------------------------------+-----------------------------------+
|Time: |Media: |09:30 am to 10:30 am CET |
+---------+--------------------------------+-----------------------------------+
| |Analyst/Institutional Investors:|11:30 am to approx. 01:00 pm CET |
+---------+--------------------------------+-----------------------------------+
The conferences can be followed by telephone or audio Webcast. All dial-in and
access details can be found on the Barry Callebaut website:
Media
Analysts
***
Contacts
for investors and financial analysts: for the media:
Evelyn Nassar Raphael Wermuth
Head of Investor Relations External Communications Manager
Barry Callebaut AG Barry Callebaut AG
Phone: +41 43 204 04 23 Phone: +41 43 204 04 58
evelyn_nassar(at)barry-callebaut.com raphael_wermuth(at)barry-callebaut.com
Group key figures for the first half of fiscal year 2011/12 - from continuing
operations
------------------+------------------------------------------------------------
| Change in %
| --------------+------------- Six months Six months up
| in local|in reporting up to Feb to Feb
| currencies| currency 29, 2012 28, 2011[8]
------------------+--------------------+---------------------------------------
Group | |
------------------+--------------------+---------------------------------------
Sales volume |Tonnes | 6.7 699,058 655,065
------------------+--------------------+---------------------------------------
Sales revenue | CHF m 10.4| 3.0 2,476.9 2,404.0
------------------+--------------------+---------------------------------------
EBITDA | CHF m (2.4)| (9.5) 215.1 237.7
------------------+--------------------+---------------------------------------
Operating profit | CHF m (5.5)| (12.5) 175.1 200.2
(EBIT) | |
------------------+--------------------+---------------------------------------
Net profit for | CHF m (11.3)| (18.0) 121.8 148.6
the period (PAT) | |
------------------+--------------------+---------------------------------------
By Region | |
| |
Europe | |
------------------+--------------------+---------------------------------------
Sales volume |Tonnes | 3.0 361,987 351,468
------------------+--------------------+---------------------------------------
Sales revenue | CHF m 4.7| (3.2) 1,174.6 1,214.0
------------------+--------------------+---------------------------------------
EBITDA | CHF m (9.9)| (16.1) 130.4 155.5
------------------+--------------------+---------------------------------------
Operating profit | CHF m (12.2)| (18.2) 114.5
(EBIT) | | 140.0
------------------+--------------------+---------------------------------------
Americas | |
------------------+--------------------+---------------------------------------
Sales volume |Tonnes | 18.6 176,898 149,191
------------------+--------------------+---------------------------------------
Sales revenue | CHF m 18.0| 10.2 548.4 497.5
------------------+--------------------+---------------------------------------
EBITDA | CHF m 20.9| 13.4 51.9 45.8
------------------+--------------------+---------------------------------------
Operating profit | CHF m 19.9| 12.4 44.3
(EBIT) | | 39.4
------------------+--------------------+---------------------------------------
Asia-Pacific | |
------------------+--------------------+---------------------------------------
Sales volume |Tonnes | 7.9 28,514 26,425
------------------+--------------------+---------------------------------------
Sales revenue | CHF m 5.5| 1.5 119.8 118.0
------------------+--------------------+---------------------------------------
EBITDA | CHF m 19.3| 14.5 18.4 16.1
------------------+--------------------+---------------------------------------
Operating profit | CHF m 21.1| 16.3 15.7
(EBIT) | | 13.5
------------------+--------------------+---------------------------------------
Global Sourcing &| |
Cocoa | |
------------------+--------------------+---------------------------------------
Sales volume |Tonnes | 2.9 131,659 127,981
------------------+--------------------+---------------------------------------
Sales revenue | CHF m 17.0| 10.4 634.1 574.5
------------------+--------------------+---------------------------------------
EBITDA | CHF m 2.3| (5.4) 46.3 49.0
------------------+--------------------+---------------------------------------
Operating profit | CHF m (0.8)| (8.6) 33.9
(EBIT) | | 37.1
------------------+--------------------+---------------------------------------
By Product Group | |
| |
Sales volume |Tonnes | 6.7
| | 699,058 655,065
------------------+--------------------+---------------------------------------
Cocoa Products |Tonnes | 2.9 131,659 127,981
------------------+--------------------+---------------------------------------
Food | |
Manufacturers |Tonnes | 8.2 489,778 452,648
Products | |
------------------+--------------------+---------------------------------------
Gourmet & | |
Specialties |Tonnes | 4.3 77,621 74,436
Products | |
------------------+--------------------+---------------------------------------
Sales revenue | 10.4| 3.0
| CHF m | 2,476.9 2,404.0
------------------+--------------------+---------------------------------------
Cocoa Products | CHF m 17.0| 10.4 634.1 574.5
------------------+--------------------+---------------------------------------
Food | |
Manufacturers | CHF m 8.5| 0.7 1,451.6 1,441.5
Products | |
------------------+--------------------+---------------------------------------
Gourmet & | |
Specialties | CHF m 7.9| 0.8 391.2 388.0
Products | |
------------------+--------------------+---------------------------------------
[1] Four-year growth targets for 2009/10-2012/13: On average 6-8% volume growth
and average EBIT growth in local currencies at least in line with volume growth
- barring any unforeseen events.
[2] Due to the discontinuation of the European Consumer Products business
certain comparatives have been restated to conform with the current period's
presentation.
[3] Source: Nielsen September 2011 until January 2012. The global chocolate
market was flat.
[4] Source: Nielsen September 2011 until January 2012. The chocolate market in
Western Europe declined by 2.9%, whereas in Eastern Europe it grew 5.6%.
[5] Source: Nielsen September 2011 until January 2012.
[6] The figures reported under "Global Sourcing & Cocoa" include all sales of
cocoa products to third-party customers in all Regions while the figures shown
under the respective Region show all chocolate sales.
[7] Four-year growth targets for 2009/10-2012/13: On average 6-8% volume growth
and average EBIT growth in local currencies at least in line with volume growth
- barring any unforeseen events.
[8] Due to the discontinuation of the European Consumer Products business
certain comparatives have been restated to conform with the current period's
presentation.
The complete news release can be downloaded from the following link:
News Release (PDF):
http://hugin.info/100441/R/1599141/504476.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Barry Callebaut AG via Thomson Reuters ONE
[HUG#1599141]
Unternehmensinformation / Kurzprofil:
Datum: 02.04.2012 - 07:02 Uhr
Sprache: Deutsch
News-ID 130704
Anzahl Zeichen: 25925
contact information:
Town:
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Kategorie:
Business News
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