Chocolate maker Barry Callebaut reported a 0.7% increase in sales volumes, to 1.1 million tonnes, in the first six months of its 2023/24 financial year, amid challenging market conditions.
Revenue for the period increased 19.6% in local currencies (up 11.1% in CHF) to CHF 4.6 billion (€4.7 billion), driven by a significant increase in cocoa prices, the company noted.
Gross profit amounted to CHF 663.1 million (€675.5 million), up 8.6% in local currencies (down 0.2% in CHF), boosted by price/mix as well as the inflationary environment.
'Solid Financial Performance'
Peter Feld, CEO of the Barry Callebaut Group, commented, "In a very disruptive external environment, we delivered a solid financial performance. With our integrated and diversified business model as well as our strong balance sheet, we remain a reliable partner for our customers.
"We retain some caution given the extraordinary price spikes over the past six months and potential implications for our customers and supply partners."
Barry Callebaut added that it has secured additional financing, including a CHF 600 million (€611.2 million) bond to mitigate higher cash requirements in bean sourcing.
Feld stated, "Our strategic investment programme BC Next Level is the cornerstone of Barry Callebaut’s future success and we are tracking to plan. We are making our business more resilient by bringing us even closer to our customers, streamlining operations and accelerating our digital transformation.
"Besides investments in areas that matter most to our customers, we are implementing efficiency measures to streamline our structures and avoid double work. We are currently in discussions with our social partners for the implementation of key activities and we are fully committed to supporting all of our employees who may be affected by our plans."
Performance By Volume
Chocolate volume increased 2.2% in Western Europe in the first six months as the business captured the consumer shift to private-label products and increased demand for gourmet products.
In Central and Eastern Europe, volumes increased 3.5%, led by a recovery in manufacturing volumes in Türkiye and South East Europe.
Volume growth in Latin America accelerated in the second quarter, leading to a 6.2% increase in the first half.
In North America, sales volume declined 1.9% in the first half due to weak consumer sentiment, while Asia Pacific, Middle East and Africa experienced a 0.6% decline due to the challenging consumer and inflationary environment.
