Barry Callebaut: Solid and profitable growth
(Thomson Reuters ONE) -
Barry Callebaut AG /
Barry Callebaut: Solid and profitable growth
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The issuer is solely responsible for the content of this announcement.
Full-year results for fiscal year 2010/11
* Volume up 7.2%
* EBIT up 15.3% in local currencies (+5.7% in CHF)
* Net profit from continuing operations up 19.8% in local currencies (+9.0% in
CHF)
* Main growth drivers: Emerging markets, Gourmet and strategic partnerships
* New strategic pillar "Sustainable Cocoa"
* Divestiture of European Consumer Products business completed
* Financial targets confirmed[1]
* Proposed increased pay-out of CHF 15.50 per share, up 10.7%
* Mr. Ajai Puri proposed for election as Board member
Group key sales figures for fiscal year 2010/11 - from continuing operations
--------------+-----------------------------------------------------------------
| Change in %
| ----------------+---------------
| in local| in reporting 12 months up 12 months up
| currencies| currency to Aug to Aug
| | 31, 2011 31, 2010
--------------+----------------------+------------------------------------------
Sales volume |Tonnes | 7.2 1'296'438 1'209'654
--------------+----------------------+------------------------------------------
Sales revenue | CHF m 13.3| 0.7 4'554.4 4'524.5
--------------+----------------------+------------------------------------------
EBITDA | CHF m 14.3| 4.2 432.1 414.6
--------------+----------------------+------------------------------------------
Operating | CHF m 15.3| 5.7 360.6 341.1
Profit (EBIT) | |
--------------+----------------------+------------------------------------------
Net profit | CHF m 19.8| 9.0 258.9 237.5
--------------+----------------------+------------------------------------------
Zurich/Switzerland, November 10, 2011 - Barry Callebaut AG, the world's leading
manufacturer of high-quality cocoa and chocolate products, again outpaced the
global chocolate market[2] with an increase in sales volume of 7.2% to
1,296,438 tonnes in the last fiscal year 2010/11 ended August 31, 2011. All
Regions and Product Groups contributed to this growth.
Food Manufacturers Products showed good growth driven by higher demand for
specialties products and fillings. Emerging markets performed at double-digit
growth rates. The Gourmet business achieved strong growth, especially in Asia-
Pacific and Europe. All Gourmet segments contributed to the growth. The global
Gourmet brands Cacao Barry(®) and Callebaut(®) performed well above market
growth. Global Sourcing & Cocoa significantly increased its volume, driven by
the strong demand for cocoa powder as well as sales of cocoa products to
strategic customers.
The weakening of various currencies against the Swiss franc - Barry Callebaut's
reporting currency - negatively impacted both sales revenue and operating profit
(EBIT). In local currencies, sales revenue rose strongly by 13.3% (+0.7% in CHF)
to CHF 4,554.4 million, driven by the volume increase and by higher raw material
prices. Operating profit (EBIT) went up significantly by 15.3% in local
currencies (+5.7% in CHF) to come in at CHF 360.6 million.
Net profit for the year from continuing operations rose by 19.8% in local
currencies (+9.0% in CHF) to CHF 258.9 million, benefiting from the higher
operating result in combination with lower income tax expenses. Net profit for
the year including discontinued operations amounted to CHF 176.8 million,
compared to CHF 251.7 million in prior year. The reduction is attributable to
the non-recurring loss of CHF 82.1 million for the discontinuation of the
European Consumer Products business.
Juergen Steinemann, CEO of Barry Callebaut, said: "We saw another year where we
delivered on our targets. We again outperformed the global chocolate market,
both with our Food Manufacturing Products and our Gourmet business. This is a
particularly great result in light of the recent crisis in Côte d'Ivoire. With
the sale of our European Consumer Products business we confirmed our strategy. I
am proud of our performance in the emerging markets and the fact that we were
able to also sign four new strategic partnership agreements. This proved once
again the attractiveness of our business model."
Region Europe - Good performance, top and bottom line
After a promising start, the general economic environment in Western Europe
weakened towards the end of the fiscal year and also the chocolate confectionery
market was slightly negative in terms of volume growth (-0.3%). In Eastern
Europe the chocolate market grew by 7.0%.[3]
In Region Europe, Barry Callebaut achieved a volume growth of 1.8% to 671,424
tonnes. In Western Europe, the Food Manufacturers Products business surpassed
the overall market growth. All key segments within the Gourmet & Specialties
Products business - confectionery, bakery/pastry and the HORECA business -
showed good growth. Barry Callebaut significantly increased its sales volumes in
the Food Manufacturers Products business in Eastern Europe, growing more than
twice as fast as the market. Russia and the former Soviet countries (CIS) were
the growth engines for the company's Gourmet business, where our continuous
investments in both our distribution network and our sales team are paying off.
Overall, volume gains, margin improvements, good cost management and higher
demand for the two global Gourmet brands significantly increased sales revenue
and operating profit (EBIT) in Region Europe. In local currencies, sales revenue
outperformed volume growth at 7.5%; in CHF it decreased by 5.3% to CHF 2,241.3
million. Operating profit (EBIT) rose to CHF 243.0 million, up 10.0% in local
currencies (+2.6% in CHF).
In July 2011 Barry Callebaut announced the sale of its European Consumer
Products business, Stollwerck, to the Belgian Baronie Group. This transaction
was completed by end of September 2011. Stollwerck has been classified and
reported as a discontinued business and prior-year figures have been restated
accordingly. The sale will enable Barry Callebaut to focus on business-to-
business, serving industrial food manufacturers, artisans and professional users
of chocolate.
Region Americas - Strong growth in competitive market environment
Whereas the U.S. economy was growing slowly, Mexico and Brazil performed at much
faster GDP rates. Local chocolate markets in the U.S. grew by 2.7% and 12.8% in
Brazil.3 In this mixed economic environment, Barry Callebaut was able to raise
sales volume by 8.2% to 313,635 tonnes.
In a very competitive market environment, the Food Manufacturers Products
business grew at close to double-digit rates driven by the long-term agreements
with our Corporate Accounts and other new business wins. Thanks to strong demand
for the company's imported brands as well as the strengthening of the Mexican
footprint and beverages, the Gourmet & Specialties Products business generated
double-digit top-line growth. Sales revenue went up to CHF 978.9 million,
corresponding to a considerable increase of 13.8% in local currencies (-0.9% in
CHF). Margin pressure in the industrial business and investments in Gourmet and
in Brazil adversely impacted operating profit (EBIT), which decreased by 11.6%
in local currencies (-19.5% in CHF) to CHF 71.9 million.
Region Asia-Pacific - Sustaining a high level of growth
The chocolate confectionery market in Region Asia-Pacific grew by 5.9% in
total.[4]
Barry Callebaut easily surpassed this growth rate by increasing its sales volume
by 10.4% to 52,397 tonnes in the Region, maintaining its double-digit growth
rates of recent years. In its Food Manufacturers Products business, growth was
driven by the remarkable performance in Indonesia, India and Korea. It is
clearly evident that the company's key global industrial customers are
increasingly focusing on the Asia-Pacific region as the next growth area. In the
Gourmet business Barry Callebaut achieved double-digit volume growth with both
of its global brands Cacao Barry(®) and Callebaut(®).
Sales revenue went up by 15.3% in local currencies (+6.9% in CHF) and came in at
CHF 221.9 million. Volume growth leading to higher capacity utilization in
combination with margin improvements resulted in a considerable climb of the
operating profit (EBIT) in local currencies of 33.0% (+22.7% in CHF) to CHF
24.9 million.
Global Sourcing & Cocoa[5] - High market demand in volatile environment
Cocoa prices moved sharply higher due to the conflict in Côte d'Ivoire and
reached new record levels on high volatility during the reporting year. After
the crisis came to an end in early May, prices drifted downwards. A larger-than-
expected cocoa crop and a reduction in financial investors' long positions also
guided prices lower. On August 31, 2011 the terminal market price for cocoa
closed at GBP 1,967 per tonne, around the prior year's level. We saw a favorable
combined cocoa ratio over the year. Sugar markets were confronted with tight
supply and prices reached historically high levels. Milk powder prices slightly
increased on higher demand.
Global Sourcing & Cocoa significantly increased its sales volume by 21.7% to
258,982 tonnes in a challenging market environment. The increase was driven by
strong demand for cocoa powder - mostly stimulated by high demand from the
bakery, beverages and ice cream industries - and by sales of cocoa products to
strategic customers. Higher average cocoa bean and powder prices positively
influenced sales revenue, which came in at CHF 1,112.3 million, up 26.5% in
local currencies (+15.6% in CHF). An overall favorable combined cocoa ratio led
to a 57.2% surge in operating profit (EBIT) in local currencies (+40.6% in CHF)
to CHF 76.6 million.
Fourth Strategic pillar - 'Sustainable Cocoa'
Consumer demand for chocolate is growing - on long-term average by 2-3% per
annum. Despite the recent bumper crop of 2010/11, Barry Callebaut sees
significant challenges ahead in securing sufficient supplies of high quality,
responsibly grown cocoa to meet future chocolate demand. The company added a
new, fourth strategic pillar called 'Sustainable Cocoa' to its current three
pillars Expansion, Innovation and Cost Leadership to address this challenge and
underline the importance of its activities in the area of sustainability. With
this fourth strategic pillar, Barry Callebaut aims to intensify its efforts in
direct cooperation with the farmer communities to increase cocoa yields and the
respective quality, acting through its existing direct sourcing programs such as
the Quality Partner Program (QPP) and Biolands. Various initiatives such as
Farmer Practices, Farmer Education and Farmer Health will also enable the
company to scale up its certified volumes.
Outlook
Looking ahead, CEO Juergen Steinemann said: "We expect the global macroeconomic
and financial environment to remain rather fragile and volatile. We assume the
chocolate confectionery and gourmet markets will grow further next year, but at
a lower rate of 1-2%. Raw material prices will stay rather high and remain
volatile. Nevertheless, based on our robust business model, we remain confident
that we will achieve our mid-term financial goals and are therefore confirming
our guidance.[6] To incorporate the long-term perspective of our essential
ingredient cocoa into our strategy, we added a new pillar 'Sustainable Cocoa'.
As the world's leading chocolate company we have to take a lead role in securing
sufficient supplies of quality-grade, responsibly grown cocoa today and
tomorrow."
Proposals to the Annual General Meeting
Dividend payment
The Board of Directors will propose an increase in the dividend payment to
shareholders of 10.7%, from CHF 14.00 to CHF 15.50 per share, representing a
payout ratio of 30.8% (versus net profit from continuing operations), at the
Annual General Meeting of Shareholders on December 8, 2011. The dividend will be
paid out of paid-in capital reserves and is not subject to any deduction of
withholding taxes. It will be paid out to shareholders as per March 1, 2012,
subject to approval by the Annual General Meeting of Shareholders.
Board of Directors
All current members of the Board of Directors will stand for re-election for
another term of office of one year except for Rolando Benedick and Urs Widmer.
Both are stepping down from the Board as of the Annual General Meeting 2011
after serving for 10 and 7 years, respectively. The Board of Directors chaired
by Andreas Jacobs expresses its gratitude to both Mr. Benedick and Mr. Widmer
for their valuable contributions to the company's development.
The Board of Directors will propose at the Annual General Meeting that Ajai Puri
be elected as a new member of the Board of Directors. Mr. Puri is currently
serving as a Non-Executive Director on the Board of Britannia Industries
Limited, India's largest independent food group, and is a member of the
Supervisory Board of Nutreco N.V., a leading global animal nutrition and
aquaculture company (see separate CV).
* * *
For more detailed financial information see Barry Callebaut's "Annual Report
2010/11" (only available in English on November 10, 2011; German version to be
available as of November 21, 2011), as well as the company's "Letter to
Investors", both posted on the company's website
(www.barry-callebaut.com/documentation). A printed version of the English
"Annual Report 2010/11" and the "Letter to Investors" will be available as of
November 21, 2011.
* * *
Financial calendar for fiscal year 2011/12 (September 1, 2011 to August
31, 2012):
------------------------------------------------------+------------------------
Annual General Meeting 2010/11 |December 8, 2011, Zurich
------------------------------------------------------+------------------------
3-month key sales figures 2011/12 (news release) |January 17, 2012
------------------------------------------------------+------------------------
Half-year results 2011/12 (news release & conference)|April 2, 2012, Zurich
------------------------------------------------------+------------------------
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.
***
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
***
Media and Analysts'/Institutional Investors' conferences of Barry Callebaut AG
Date: Thursday, November 10, 2011
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
Group key figures for fiscal year 2010/11 - from continuing operations
-----------------+--------------------------------------------------------------
| Change in %
| ---------------+-------------
| | 12 months up 12 months up
| in local|in reporting to Aug to Aug
| currencies| currency 31, 2011 31, 2010[7]
-----------------+---------------------+----------------------------------------
Group | |
-----------------+---------------------+----------------------------------------
Sales volume |Tonnes | 7.2 1'296'438 1'209'654
-----------------+---------------------+----------------------------------------
Sales revenue | CHF m 13.3| 0.7 4'554.4 4'524.5
-----------------+---------------------+----------------------------------------
EBITDA | CHF m 14.3| 4.2 432.1 414.6
-----------------+---------------------+----------------------------------------
Operating profit | CHF m 15.3| 5.7 360.6 341.1
(EBIT) | |
-----------------+---------------------+----------------------------------------
Net profit | CHF m 19.8| 9.0 258.9 237.5
-----------------+---------------------+----------------------------------------
Net profit for | CHF m (22.0)| (29.8) 176.8 251.7
the year | |
(incl. | |
discontinued | |
operations) | |
-----------------+---------------------+----------------------------------------
By Region | |
| |
Europe | |
-----------------+---------------------+----------------------------------------
Sales volume |Tonnes | 1.8 671'424 659'331
-----------------+---------------------+----------------------------------------
Sales revenue | CHF m 7.5| (5.3) 2'241.3 2'366.9
-----------------+---------------------+----------------------------------------
EBITDA | CHF m 10.6| 2.5 272.5 265.8
-----------------+---------------------+----------------------------------------
Operating Profit | CHF m 10.0| 2.6 243.0 236.8
(EBIT) | |
-----------------+---------------------+----------------------------------------
Americas | |
-----------------+---------------------+----------------------------------------
Sales volume |Tonnes | 8.2 313'635 289'970
-----------------+---------------------+----------------------------------------
Sales revenue | CHF m 13.8| (0.9) 978.9 987.6
-----------------+---------------------+----------------------------------------
EBITDA | CHF m (10.2)| (18.7) 85.4 105.0
-----------------+---------------------+----------------------------------------
Operating Profit | CHF m (11.6)| (19.5) 71.9 89.3
(EBIT) | |
-----------------+---------------------+----------------------------------------
Asia-Pacific | |
-----------------+---------------------+----------------------------------------
Sales volume |Tonnes | 10.4 52'397 47'466
-----------------+---------------------+----------------------------------------
Sales revenue | CHF m 15.3| 6.9 221.9 207.5
-----------------+---------------------+----------------------------------------
EBITDA | CHF m 26.4| 16.9 29.8 25.5
-----------------+---------------------+----------------------------------------
Operating Profit | CHF m 33.0| 22.7 24.9 20.3
(EBIT) | |
-----------------+---------------------+----------------------------------------
Global Sourcing &| |
Cocoa | |
-----------------+---------------------+----------------------------------------
Sales volume |Tonnes | 21.7 258'982 212'886
-----------------+---------------------+----------------------------------------
Sales revenue | CHF m 26.5| 15.6 1'112.3 962.5
-----------------+---------------------+----------------------------------------
EBITDA | CHF m 46.0| 30.3 98.0 75.2
-----------------+---------------------+----------------------------------------
Operating Profit | CHF m 57.2| 40.6 76.6 54.5
(EBIT) | |
-----------------+---------------------+----------------------------------------
By Product Group | |
| |
Sales volume | | 7.2 1'296'438 1'209'654
-----------------+---------------------+----------------------------------------
Cocoa Products |Tonnes | 21.7 258'982 212'886
-----------------+---------------------+----------------------------------------
Food |Tonnes | 3.8 896'117 863'720
Manufacturers | |
Products | |
-----------------+---------------------+----------------------------------------
Gourmet & |Tonnes | 6.2 141'339 133'048
Specialties | |
Products | |
-----------------+---------------------+----------------------------------------
Sales revenue | 13.3| 0.7 4'554.4 4'524.5
-----------------+---------------------+----------------------------------------
Cocoa Products | CHF m 26.5| 15.6 1'112.3 962.5
-----------------+---------------------+----------------------------------------
Food | CHF m 8.6| (4.4) 2'728.3 2'854.4
Manufacturers | |
Products | |
-----------------+---------------------+----------------------------------------
Gourmet & | CHF m 13.9| 0.9 713.8 707.6
Specialties | |
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] The global chocolate market grew by 3.1% per annum in volume. Source:
Nielsen, September 2010 - August 2011.
[3] Source: Nielsen, September 2010 - August 2011.
[4] Source: Euromonitor, 2011 (incl. Indonesia, China, India, Japan).
[5] 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.
[6] 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.
[7] Due to the discontinuation of the European Consumer Products business
certain comparatives have been restated to conform with the current period's
presentation.
--- End of Message ---
Barry Callebaut AG
P.O. Box Zurich
WKN: 914661;ISIN: CH0009002962;
Press Release (PDF):
http://hugin.info/100441/R/1562681/484250.pdf
CV:
http://hugin.info/100441/R/1562681/484251.pdf
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originality of the information contained therein.
Source: Barry Callebaut AG via Thomson Reuters ONE
[HUG#1562681]
Unternehmensinformation / Kurzprofil:
Datum: 10.11.2011 - 07:00 Uhr
Sprache: Deutsch
News-ID 86217
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contact information:
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