Annual Report 2013/14
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9-month key sales figures, fiscal year 2012/13: Maintaining strong volume growth momentum

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July 04, 2013
Overview

9-month key sales figures, FY 2011/13: Roadshow Presentation

Roadshow Presentation [2 MB]
  • Sales volume up 8.2%
  • Growth driven by strategic partnerships, emerging markets as well as Gourmet
  • Successful closing of acquisition of Cocoa Ingredients Division from Petra Foods
  • Mid-term guidance confirmed1

Juergen Steinemann, CEO of Barry Callebaut, said: “We are pleased to have again achieved such strong, broad-based volume growth for the first nine months, especially as the general market environment in Western Europe was still challenging. Key growth drivers were our strategic partnerships, emerging markets and the Gourmet business. Now, after the closing of the acquisition, we are focusing on the integration of the cocoa business from Petra Foods, having made all the necessary preparations for this during the past six months.”

Group key sales figures for the first 9 months of fiscal year 2012/13 –
from continuing operations

 

 

Change in %

 

 

in local currencies

in CHF

9 months up to    May 31, 2013

9 months up to May 31, 20122

Sales volume

Tonnes

 

8.2

1,112,309

1,028,237

Sales revenue

CHF m

(1.3)

(0.5)

3,540.7

3,557.3

Zurich/Switzerland – July 4, 2013 – Barry Callebaut – the world’s leading manufacturer of high-quality cocoa and chocolate products – achieved strong top-line growth with an increase in sales volume of 8.2% to 1,112,309 tonnes in the first nine months of fiscal year 2012/13 (ended May 31, 2013). During Q3, the company even accelerated its volume growth to 8.9%. With this, Barry Callebaut significantly outpaced the global chocolate market, which increased by 1.9%.3
For the nine-month period, growth was recorded across all Regions, strongly supported by the company’s long-term outsourcing agreements and strategic partnerships as well as the Gourmet & Specialties Products business. Business in emerging markets continued to perform well, in particular EEMEA and Latin America.
Based on Barry Callebaut’s cost-plus model, lower average raw material prices compared to the previous year translated into lower sales revenue4: -1.3% in local currencies (-0.5% in CHF) to CHF 3,540.7 million.

Outlook – Integration process successfully initiated, mid-term guidance confirmed
Barry Callebaut’s continuous growth is the result of the consistent execution of its long-term strategy. After the closing of the recent acquisition of the cocoa business from Petra Foods, Barry Callebaut will focus on both a successful integration of the acquired business and on the Group’s margin improvement. CEO Juergen Steinemann on the outlook: “Based on our leadership position and the visibility on the business front, we are confident of achieving our mid-term guidance1.”

Strategic developments –
Successful closing of acquisition of Petra Foods’ Cocoa Ingredients Division
On June 30, 2013, Barry Callebaut successfully closed the acquisition of the Cocoa Ingredients Division from Singapore-based Petra Foods Ltd. The signing of the transaction was announced on December 12, 2012. Subsequently, a joint integration team developed the integration masterplan that is now being implemented. The combination of the two complementary businesses makes Barry Callebaut the world’s largest cocoa and chocolate products manufacturer with over 8,000 employees, an estimated annual sales volume of 1.6 million tonnes and CHF 6 billion (EUR 4.9 billion / USD 6.4 billion) in sales revenue and expands the company’s global footprint to 50 factories on four continents.
In June, Barry Callebaut funded the purchase price which will be approximately USD 860 million (subject to final adjustments following the closing) with the placement of 10 year senior notes of USD 400 million with a coupon of 5.5% and the issuance of new shares (c. USD 300 million). The remainder will be financed through the partial utilization of an existing bridge loan.

Regional / Segment performance
Region Europe – Continued solid growth in a challenging market environment
Sales volume in Region Europe continued its solid growth path with an increase of +5.7% to 554,284 tonnes. Again, Western Europe performed very well against the background of a still challenging market environment. The Gourmet & Specialties Products business showed strong growth in Q3. In Eastern Europe, Middle East and Africa (EEMEA) sales volume went up double-digit in both the Food Manufacturers Products and the Gourmet business. Russia performed particularly well.
Sales revenue in the Region increased by 4.4% in local currencies (+5.0% in CHF) to CHF 1,748.0 million.

Region Americas – Continued strong volume growth momentum
Region Americas continued to grow double-digit; sales volume went up 17.1% to 308,492 tonnes. In North America, business was driven by both the company’s corporate accounts in the industrial business and Gourmet thanks to a continued improvement in the food service business in the US. Business in South America went up double-digit positively influenced by good Gourmet sales.
Sales revenue in the Region increased by 4.2% in local currencies (+ 6.7% in CHF) to CHF 863.4 million influenced by lower average raw material prices compared to last year.

Region Asia-Pacific – Strong Gourmet performance
In Asia-Pacific, Barry Callebaut’s overall sales volume was up 5.4% to 44,791 tonnes. For the Food Manufacturers Products business both strategic as well as local customers contributed to the good growth. Driven by good sales with the global brand Callebaut®, the Gourmet & Specialties Products business increased double-digit.
Overall, sales revenue decreased by 2.8% in local currencies (-2.5% in CHF) to CHF 168.7 million as a result of lower raw material prices.

Global Sourcing & Cocoa5 – Revenue impacted by lower cocoa powder prices
The segment Global Sourcing & Cocoa increased its total sales volume by 3.5% to 204,742 tonnes. Higher internal demand for cocoa powder limited sales to third parties.
Market and selling prices for cocoa powder were significantly lower compared to last year. This had an impact on sales revenue, which declined by 16.4% in local currencies (-16.5% in CHF) to CHF 760.6 million.

Raw material price developments
In the past three months, cocoa prices continued to trade in the range of GBP 1,400 and 1,600 per tonne. Good 2012/13 mid-crop arrivals and 2013/14 forward sales combined with funds building long positions led to relatively stable prizes.
World sugar market prices continued to decline thanks to the surplus that is still on the market. In the EU, special measures (import quotas and reclassification) stabilized prices, but at still rather high levels.
Due to a drought situation in New Zealand, the world’s leading dairy supplier, market prices for milk powder rose sharply before stabilizing at historically high levels.

***


 

1 As of consolidation of Petra Foods’ cocoa business: 6-8% average volume growth per year and EBIT per tonne restored to pre-acquisition level until 2015/16 – barring any major unforeseen events.

2 Restated figures due to the divestiture of the consumer business.

Source: Nielsen September 2012 until May 2013.

Barry Callebaut passes on raw material prices to customers for 80% of its business.

 ***

Financial calendar for fiscal year 2012/13 (September 1, 2012 to August 31, 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) in fiscal year 2011/12, Zurich-based Barry Callebaut is the world’s leading manufacturer of high-quality cocoa and chocolate products – from sourcing and transforming cocoa beans to producing the finest chocolate, including chocolate fillings, decorations and compounds. Combined with the recently acquired cocoa ingredients business from Petra Foods, Barry Callebaut generates estimated annual sales of CHF 6 billion (EUR 4.9 billion / USD 6.4 billion), runs around 50 production facilities worldwide, sells its products in over 100 countries and employs a diverse and dedicated workforce of more than 8,000 people.
Barry Callebaut serves the entire food industry, from industrial food manufacturers to artisanal and professional users of chocolate, such as chocolatiers, pastry chefs, bakers, hotels, restaurants or caterers. The two global brands catering to the specific needs of these customers are Callebaut® and Cacao Barry®.

***

Contacts:

 

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@barry-callebaut.com

raphael_wermuth@barry-callebaut.com

 

 

 

Group key sales figures for the first 9 months of fiscal year 2012/13 – from continuing operations

 

 

Change in %

9 months up to May 31, 2013

9 months up to May 31, 20126

 

 

in local currencies

in reporting currency

 

 

Group

 

 

 

 

 

Sales volume

Tonnes

 

8.2

1,112,309

1,028,237

Sales revenue

CHF m

(1.3)

(0.5)

3,540.7

3,557.3

By Region

 

 

 

 

 

Europe

 

 

 

 

 

Sales volume

Tonnes

 

5.7

554,284

524,345

Sales revenue

CHF m

4.4

5.0

1,748.0

1,664.2

Americas

 

 

 

 

 

Sales volume

Tonnes

 

17.1

308,492

263,515

Sales revenue

CHF m

4.2

6.7

863.4

809.0

Asia-Pacific

 

 

 

 

 

Sales volume

Tonnes

 

5.4

44,791

42,514

Sales revenue

CHF m

(2.8)

(2.5)

168.7

173.0

Global Sourcing & Cocoa

 

 

 

 

 

Sales volume

Tonnes

 

3.5

204,742

197,863

Sales revenue

CHF m

(16.4)

(16.5)

760.6

911.1

By Product Group

 

 

 

 

 

Sales Volume

Tonnes

 

8.2

1,112,309

1,028,237

Cocoa Products

Tonnes

 

3.5

204,742

197,863

Food Manufacturers Products

Tonnes

 

9.4

784,844

717,309

Gourmet & Specialties Products

Tonnes

 

8.5

122,723

113,065

Sales Revenue

CHF m

(1.3)

(0.5)

3,540.7

3,557.3

Cocoa Products

CHF m

(16.4)

(16.5)

760.6

911.1

Food Manufacturers Products

CHF m

3.3

4.6

2,177.7

2,081.8

Gourmet & Specialties Products

CHF m

5.9

6.7

602.4

564.4

 

[6] Restated figures Q3 2011/12 due to consumer divestiture