Barry Callebaut: Strong volume growth, product margins improved, continued investment in future growth
(Thomson Reuters ONE) -
Barry Callebaut /
Barry Callebaut: Strong volume growth, product margins improved, continued
investment in future growth
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The issuer is solely responsible for the content of this announcement.
Barry Callebaut - Half-year results, fiscal year 2012/13
* Strong, broad-based volume growth, significantly outperforming the global
chocolate market[1]: sales volume +7.8%, fueled by strategic growth drivers
outsourcing, Gourmet and emerging markets
* Product margins improved; gross profit up +4.9% in local currencies (+5.5%
in CHF) despite an unfavorable combined cocoa ratio[2]. EBIT decreased by
2.4% in local currencies (-2.1% in CHF)
* Closing and integration plan for Cocoa Ingredients Division acquisition from
Petra Foods well on track
* Growth targets confirmed[3]
* Fernando Aguirre and Timothy Minges nominated for election as new Board
members
Juergen Steinemann, CEO of Barry Callebaut said: "We continued to deliver strong
volume growth, significantly outperforming the global chocolate market. We grew
in all Regions and Product Groups thanks to our strategic growth drivers
outsourcing, Gourmet and emerging markets. We were able to improve our product
margins. Our EBIT was impacted by the unfavorable combined cocoa ratio as well
as additional factory and supply chain costs due to our strong growth in some
regions causing capacity constraints. We continued to invest in the expansion of
our global footprint, structures and processes."
Group key figures for the first half of fiscal year 2012/13 -
from continuing operations
-------------------------------------------------------------------------------
Change in %
in local in CHF 6 months up to 6 months up to
currencies Feb Feb 29, 2012[4]
28, 2013
-------------------------------------------------------------------------------
Sales volume Tonnes 7.8 745,256 691,061
-------------------------------------------------------------------------------
Sales revenue CHF m (2.6) (2.4) 2,391.6 2,449.6
-------------------------------------------------------------------------------
Gross profit CHF m 4.9 5.5 357.3 338.8
-------------------------------------------------------------------------------
Operating
profit (EBIT) CHF m (2.4) (2.1) 173.8 177.6
-------------------------------------------------------------------------------
EBIT per tonne CHF (9.5) (9.3) 233.2 257.0
-------------------------------------------------------------------------------
Net profit CHF m (7.7) (7.4) 116.4 125.7
-------------------------------------------------------------------------------
Zurich/Switzerland - April 8, 2013 - In the first six months of fiscal year
2012/13 (ended February 28, 2013), Barry Callebaut - the world's leading
manufacturer of high-quality cocoa and chocolate products - strongly increased
its sales volume by 7.8% to 745,256 tonnes, significantly outpacing the global
chocolate confectionery market[1]. Top-line growth was broadly based, driven by
long-term outsourcing agreements and strategic partnerships, Gourmet and
emerging markets. All Product Groups and Regions contributed to this growth.
Sales revenue: Based on its cost-plus model, Barry Callebaut passes on raw
material prices to customers for 80% of its business. The lower average prices
for cocoa ingredients (cocoa beans, cocoa butter, and cocoa powder) compared to
the previous year translated into lower sales revenue. As a result, sales
revenue went down by 2.6% in local currencies (-2.4% in CHF) to
CHF 2,391.6 million despite the volume growth.
Gross profit increased by 4.9% in local currencies (+5.5% in CHF) to CHF 357.3
million, driven by higher volume and improved product margins, partly offset by
the effect of a lower combined cocoa ratio[2]. In addition, the strong growth in
some regions caused capacity constraints, which led to additional factory and
supply chain costs.
Operating profit (EBIT) was impacted by ongoing investments in structures,
processes and people to accommodate future growth. Additionally, the Group
increased its marketing activities for the global Gourmet brands, and incurred
first costs related to the acquisition of Petra Foods' Cocoa Ingredients
Division. Consequently, EBIT declined by 2.4% in local currencies (-2.1% in CHF)
to CHF 173.8 million.
Net profit for the period from continuing operations decreased by 7.7% in local
currencies (-7.4% in CHF) to CHF 116.4 million, mainly as a result of the lower
EBIT in combination with an increase in net financial expenses and taxes.
Outlook - Continuation of robust growth, delivering on targets[3]
CEO Juergen Steinemann on the outlook: "Based on our four strategic pillars,
Expansion, Innovation, Cost Leadership and Sustainable Cocoa, we will continue
to deliver robust volume growth. The focus on product margins will remain
important. We expect cocoa processing results to increase in the second half of
our fiscal year. Our cost base will grow at a slower pace than volume, except
for non-recurring costs related to the closing and integration of the
acquisition of the Cocoa Ingredients Division from Petra Foods. Considering all
this, we are confident of delivering on our mid-term guidance."
Strategic developments - Closing for Cocoa Ingredients Division acquisition from
Petra Foods well on track
In December Barry Callebaut announced its intention to acquire the Cocoa
Ingredients Division of Petra Foods in order to support the further growth of
its chocolate business. This transaction will boost Barry Callebaut's presence
in fast growing emerging markets to almost one-third of the Group's sales volume
and enable the company to capitalize on the attractive growth rates in these
markets for cocoa powder-based applications in beverages, compound chocolates,
fillings, bakery products and ice cream. In addition, the acquisition will
strengthen Barry Callebaut's current and future partnership agreements as there
is a trend towards combined contracts (cocoa and chocolate products). It will
also add Asia as a strong sourcing base next to West Africa. Deal close
activities are well on track. A joint integration taskforce has started
developing an integration masterplan
to be implemented upon the closing of the transaction, which is expected to take
place in summer 2013.
As expected, the acquisition of Petra Foods' Cocoa Ingredients Division led to a
recent rating action by Standard & Poor's which assigned a BB+ rating to Barry
Callebaut AG, down from BBB-.
Barry Callebaut is currently preparing the financing of the acquisition to
cancel the bridge loan facility and replace it by issuing a combination of new
equity for an equivalent amount of USD 300 million and a USD 600 million Rule
144A/Reg S USD bond offering.
In January Barry Callebaut strengthened its leadership position in Scandinavia
through the acquisition of ASM Foods AB in Sweden from Danish Carletti A/S. With
ASM Foods, Barry Callebaut is enhancing its portfolio of higher-margin products
such as specialty compound chocolates, fillings and inclusions for both its
industrial and Gourmet business. In the same transaction, Carletti A/S became
Barry Callebaut's first outsourcing partner in Scandinavia. In addition, the
Group signed its first outsourcing agreement in South America with Arcor Group
in Chile.
In terms of geographic expansion, four factories are currently under
construction: A chocolate factory in Eskisehir, Turkey, a cocoa factory in
Makassar, Indonesia, both going on stream in fall 2013, as well as two chocolate
factories in Santiago de Chile and in Takasaki, Japan, scheduled to be
operational in the first half of 2014.
The completion of the sale of the Dijon factory in November 2012 marked the
final step in the disposal of all consumer activities.
Regional / Segment performance
Region Europe[5] - Solid growth, both top and bottom line
European chocolate confectionery markets grew by 2.0%. Growth in Western Europe
was +1.4%, markets in Eastern Europe went up 3.4%[1].
Notwithstanding the still challenging market environment - especially in
Southern Europe - Barry Callebaut achieved solid growth in Region Europe:
Overall sales volume moved up strongly by 5.8% to 377,458 tonnes. Growth in
Western Europe was driven by higher sales of both standard (chocolate and
compound) and specialties products (fillings, decorations, nut products) in the
Food Manufacturers Products business. Despite the difficult market environment,
the Gourmet business achieved good, single-digit growth, supported by the
company's Belgian Gourmet brand Callebaut(®). Volumes in the Beverages division
picked up.
The industrial business in Eastern Europe, Middle East and Africa (EEMEA) grew
double-digit in Russia, the Middle East and Turkey. Here, the Gourmet &
Specialties Products business continued to record double-digit volume growth
thanks to a particular strong performance of Callebaut(®) in Russia.
Overall sales revenue in Region Europe increased by 3.1% in local currencies
(+3.0% in CHF) to CHF 1,186.2 million. Operating profit (EBIT) development even
exceeded the good volume and sales revenue development: EBIT rose 8.1% in local
currencies (+8.6% in CHF) to CHF 127.5 million) as a result of improved margins.
Region Americas - Continued double-digit top-line growth, strong bottom-line
performance
The chocolate confectionery market in the U.S. decreased by 1.3%; Brazil was at
-0.7%[1].
Barry Callebaut maintained the double-digit growth pace in Region Americas.
Sales volume increased by 13.6% to 200,434 tonnes. In North America, growth was
mainly driven by the company's global accounts in the Food Manufacturers
Products business. The Gourmet business continued to grow double-digit in North
America and sales volume in South America was again substantially higher. Mexico
was a strong performer, doubling volumes compared to last year. Sales revenue in
the Region went up 1.6% in local currencies (+3.6% in CHF) to CHF 567.2 million
as result of lower raw material prices. Volume growth positively influenced the
regional operating result: Operating profit (EBIT) rose by 8.7% in local
currencies (+10.4% in CHF) to CHF 49.8 million.
Region Asia-Pacific - Double-digit volume growth
Chocolate markets in Asia grew by 11.6%, again outperforming the growth in other
world regions, although still from a lower base[6].
In Region Asia-Pacific, Barry Callebaut continued to grow double-digit. Overall
sales volume increased by 11.9% to 30,915 tonnes. Growth was driven by strategic
partnerships in the Food Manufacturers Products business. In the Gourmet &
Specialty Products business, Callebaut(®) achieved broadly based, double-digit
volume growth; overall growth was also strongly supported by well performing
local brands. Both in the industrial and the Gourmet business, China was the
best performing country.
Due to lower average raw material prices compared to last year, sales revenue in
the Region increased by 0.3% in local currencies (+1.0% in CHF) to CHF 118.1
million. Operating profit (EBIT) was negatively impacted by a higher cost base
as a result of ongoing expansion: EBIT decreased by 2.5% in local currencies (-
1.3% in CHF) to CHF 15.0 million.
Global Sourcing & Cocoa[7] - Combined cocoa ratio[2] affected profitability
Cocoa terminal market prices traded above the GBP 1,700 threshold early
September due to uncertainties with regard to the development of the main crop
and the implementation of the Cocoa Reform in Côte d'Ivoire. In the following
months, prices continuously retreated and closed at GBP 1,429 at the end of
February. The downward move was mostly caused by the liquidation of funds' long
positions and, more recently, by good prospects for the size of the upcoming
mid-crop, starting in May.
The sugar crop 2012/13 was very good; the world market closed the 3(rd) year in
a row in a surplus. After peaking last October, world sugar prices steadily
declined. Funds going short put additional downward pressure on prices. By the
end of February, world market prices for sugar were at a two-year low. In the
EU, special measures were taken to supply the sugar market by increasing the
import quota. EU sugar prices stayed at the same, still rather high levels.
Milk powder prices in Europe remained flat, but on high levels, due to balanced
supply and demand. In contrast, world market prices increased and reached EU
levels at the end of February due to lower overall supply in the market and in
anticipation of a drier season in New Zealand, which would lead to less supply
in the near future.
The segment Global Sourcing & Cocoa expanded its total third party sales volume
by 4.9% to 136,449 tonnes, despite a downturn in powder demand in the U.S. and
Europe. Compared to last year, sales prices for cocoa ingredients (cocoa butter,
cocoa liquor, and cocoa powder) were significantly lower. Therefore, sales
revenue declined by 17.2% in local currencies (-18.0% in CHF) to CHF 520.1
million. As expected, the combined cocoa ratio[2] had a negative effect on cocoa
processing profitability and as a result operating profit (EBIT) dropped by
37.5% in local currencies (-40.4% in CHF) to CHF 19.8 million.
Proposals to the Extraordinary General Meeting of Shareholders (EGM)
Authorized capital increase
As announced on March 27, 2013, the Board of Directors of Barry Callebaut has
called for an Extraordinary General Meeting of Shareholders (EGM) on April
22, 2013 proposing to create authorized share capital for the purpose of partly
financing the acquisition of the Cocoa Ingredients Division from Petra Foods.
Election of two new members to the Board of Directors
Furthermore, the Board of Directors also proposes to the EGM the election of
Fernando Aguirre and Timothy E. Minges as new members of the Board of Directors
of Barry Callebaut for the current term of office until the next ordinary
General Meeting on December 11, 2013.
Fernando Aguirre served as the Chairman and CEO of Chiquita Brands International
Inc. from 2004 until 2012. Presently Mr. Aguirre is a consultant to Chiquita and
a Director of Levi Strauss & Co. as well as a Director at Aetna Inc.
Timothy E. Minges is currently Chairman of PepsiCo Greater China Region and a
member of PepsiCo's Executive Committee. Mr. Minges also serves on the Board of
Tingyi-Asahi Beverage.
(see separate CVs for further details)
***
For more detailed financial information see Barry Callebaut's Letter to
Investors 'Half-year results 2012/13': www.barry-
callebaut.com/documentation#c1212.
***
-------------------------------------------------------------------------------
Financial calendar for fiscal year 2012/13 (September 1, 2012 to August
31, 2013):
-------------------------------------------------------------------------------
Extraordinary General Meeting of Shareholders April 22, 2013
-------------------------------------------------------------------------------
9-month key sales figures 2012/13 (news release) July 4, 2013
-------------------------------------------------------------------------------
Full-year results 2012/13 (news release &
conference) November 7, 2013, Zurich
-------------------------------------------------------------------------------
Annual General Meeting 2012/2013 December 11, 2013, Zurich
-------------------------------------------------------------------------------
***
Barry Callebaut (www.barry-callebaut.com/):
With annual sales of about CHF 4.8 billion (EUR 4.0 billion / USD 5.2 billion)
for fiscal year 2011/12, Zurich-based Barry Callebaut is the world's leading
manufacturer of high-quality cocoa and chocolate - from the cocoa bean to the
finest chocolate product. Barry Callebaut operates out of 30 countries, runs
more than 45 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 Cocoa Horizons
initiative and research activities, the company engages 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 8, 2013
-------------------------------------------------------------------------------
Location: Barry Callebaut Head Office, Chocolate Academy, Groundfloor,
Pfingstweidstrasse 60, Westpark, 8005 Zurich/Switzerland
-------------------------------------------------------------------------------
Time: Media: 09.30 am to 10.30 am CET
Analysts/Institutional Investors: 11.30 to approx. 1 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/Institutional Investors
-------------------------------------------------------------------------------
***
Contact
for investors and financial analysts: for the media:
Evelyn Nassar Raphael Wermuth
Head of Investor Relations Head of Media Relations
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 2012/13 -
from continuing operations
-------------------------------------------------------------------------------
Change in %
in local 6 months up 6 months up to
currencies in CHF to Feb Feb 29, 2012[4]
28, 2013
-------------------------------------------------------------------------------
Group
-------------------------------------------------------------------------------
Sales volume Tonnes 7.8 745,256 691,061
-------------------------------------------------------------------------------
Sales revenue CHF m (2.6) (2.4) 2,391.6 2,449.6
-------------------------------------------------------------------------------
EBITDA CHF m 1.8 2.1 220.1 215.6
-------------------------------------------------------------------------------
Operating profit (2.4) (2.1) 173.8 177.6
(EBIT) CHF m
-------------------------------------------------------------------------------
Net profit CHF m (7.7) (7.4) 116.4 125.7
-------------------------------------------------------------------------------
Net profit (incl.
discontinued
operations) CHF m 22.0 22.4 110.3 90.1
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
By Region
-------------------------------------------------------------------------------
Europe
-------------------------------------------------------------------------------
Sales volume Tonnes 5.8 377,458 356,888
-------------------------------------------------------------------------------
Sales revenue CHF m 3.1 3.0 1,186.2 1,151.4
-------------------------------------------------------------------------------
EBITDA CHF m 8.5 9.0 143.1 131.3
-------------------------------------------------------------------------------
Operating Profit 8.1 8.6 127.5 117.4
(EBIT) CHF m
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Americas
-------------------------------------------------------------------------------
Sales volume Tonnes 13.6 200,434 176,446
-------------------------------------------------------------------------------
Sales revenue CHF m 1.6 3.6 567.2 547.4
-------------------------------------------------------------------------------
EBITDA CHF m 13.7 15.1 60.7 52.7
-------------------------------------------------------------------------------
Operating profit 8.7 10.4 49.8 45.1
(EBIT) CHF m
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Asia-Pacific
-------------------------------------------------------------------------------
Sales volume Tonnes 11.9 30,915 27,639
-------------------------------------------------------------------------------
Sales revenue CHF m 0.3 1.0 118.1 116.9
-------------------------------------------------------------------------------
EBITDA CHF m 0.7 1.6 18.2 17.9
-------------------------------------------------------------------------------
Operating Profit (2.5) (1.3) 15.0 15.2
(EBIT) CHF m
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Global Sourcing &
Cocoa
-------------------------------------------------------------------------------
Sales volume Tonnes 4.9 136,449 130,088
-------------------------------------------------------------------------------
Sales revenue CHF m (17.2) (18.0) 520.1 633.9
-------------------------------------------------------------------------------
EBITDA CHF m (21.3) (23.6) 34.9 45.6
-------------------------------------------------------------------------------
Operating Profit (37.5) (40.4) 19.8 33.2
(EBIT) CHF m
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
By Product Group
-------------------------------------------------------------------------------
Sales Volume Tonnes 7.8 745,256 691,061
-------------------------------------------------------------------------------
Cocoa Products Tonnes 4.9 136,449 130,088
-------------------------------------------------------------------------------
Food Manufacturers 8.8 524,738 482,336
Products Tonnes
-------------------------------------------------------------------------------
Gourmet & 6.9 84,069 78,637
Specialties
Products Tonnes
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Sales Revenue CHF m (2.6) (2.4) 2,391.6 2,449.6
-------------------------------------------------------------------------------
Cocoa Products CHF m (17.2) (18.0) 520.1 633.9
-------------------------------------------------------------------------------
Food Manufacturers 1.9 2.6 1,455.1 1,418.3
Products CHF m
-------------------------------------------------------------------------------
Gourmet & 4.5 4.8 416.4 397.4
Specialties
Products CHF m
-------------------------------------------------------------------------------
[1] The global chocolate confectionery market grew by 1.5% in volume in the
period September 2012 until January 2013. Source: Nielsen.
[2] Combined sales prices for cocoa butter and cocoa powder relative to the
cocoa bean price. For cocoa processors, profitability depends on the ratio
between input costs (price of cocoa beans) and output prices (price of cocoa
butter and powder).
[3] Mid-term growth targets for 2011/12-2014/15: On average 6-8% volume growth
and average EBIT growth in local currencies at least in line with volume growth
- barring any unforeseen events.
[4] Restated figures due to the divestiture of the consumer business.
[5] Including Western Europe, Eastern Europe, Middle East and Africa.
[6] China (+4.1%) and India (+16.3%); Source: Nielsen, September 2012 until
January 2013.
[7] 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.
The complete news release and CVs can be downloaded from the following links:
News Release (PDF):
http://hugin.info/100441/R/1690938/555159.pdf
CV - Candidate 2: Mr. Timothy E. Minges (PDF):
http://hugin.info/100441/R/1690938/555164.pdf
CV - Candidate 1: Mr. Fernando Aguirre (PDF):
http://hugin.info/100441/R/1690938/555163.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 via Thomson Reuters ONE
[HUG#1690938]
Unternehmensinformation / Kurzprofil:
Datum: 08.04.2013 - 07:02 Uhr
Sprache: Deutsch
News-ID 246539
Anzahl Zeichen: 30549
contact information:
Town:
Zurich
Kategorie:
Business News
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