Region EMEA – Resilient volume in light of renewed lockdowns
Sales volume of Barry Callebaut in Region EMEA (Europe, Middle East and Africa) decreased by
–6.7% to 251,554 tonnes. The volume development was resilient in light of the renewed lockdowns in major European markets3 at the end of the first quarter of the fiscal year. Food Manufacturers was impacted by lower seasonal activities, leading to a mid-single digit decline. Gourmet & Specialties’ volume continued to recover, in particular in Eastern Europe, resulting in an overall volume decline in the low teens. Sales revenue decreased by –4.6% in local currencies (–8.3% in CHF) to CHF 775.1 million. In preparation for the departure of the United Kingdom from the European Union, the Group took all the necessary steps to ensure continued high service levels for its customers in the UK.
Region Americas – Positive momentum continues
The positive momentum continued in Region Americas with sales volume increasing by +6.0% to 162,070 tonnes, well ahead of the declining regional chocolate confectionery market3. Volume growth was supported by both Food Manufacturers and Gourmet. In particular in North America, large corporate accounts in Food Manufacturers grew by double-digits. Gourmet & Specialties’ overall volume growth returned to positive territory. Sales revenue increased by +5.2% in local currencies (–5.6% in CHF) to CHF 471.5 million.
Region Asia Pacific – Steady growth against high comparison base
Against a high double-digit comparison base in prior year, Region Asia Pacific achieved steady growth with volume up +1.8% to 34,080 tonnes, significantly outpacing the regional chocolate confectionery market4. Growth in Food Manufacturers was mainly supported by corporate accounts. The integration of GKC Foods in Australia is on track and will strengthen the Group’s position in the industrial chocolate market and leverage its value-adding Gourmet & Specialties business in Australia and New Zealand. The opening of a CHOCOLATE ACADEMY™ Center in Shenzhen, China, will create further opportunities for Gourmet in the Region. Sales revenue increased by +1.4% in local currencies (–4.8% in CHF) to CHF 106.9 million.
Global Cocoa – Focus on ‘smart growth’
Global Cocoa sales volume declined by –13.1% to 112,650 tonnes, against a high comparison base. Furthermore, the decline reflects the Group’s focus on ‘smart growth’, proactively balancing volume and profit and driving for a disciplined implementation of the ‘Living Income Differential’ (LID). The LID has been consistently applied to the Group’s bean purchases in Côte d’Ivoire and Ghana. Sales revenue decreased by –10.9% in local currencies (–22.0% in CHF) to CHF 424.0 million, partially due to lower cocoa bean prices.
Price developments of key raw materials
During the first three months of fiscal year 2020/21, terminal market5 prices for cocoa beans fluctuated between GBP 1,608 and GBP 1,869 per tonne and closed at GBP 1,869 per tonne on November 30, 2020. On average, cocoa bean prices decreased by –7.2% versus the prior-year quarter. The outlook for global bean supply and demand indicates a sizable surplus.
World sugar prices increased on average by +14.3% on the back of increased demand from China and in the absence of Indian exports. Sugar prices in Europe decreased on average by –3.9% compared to the prior-year first quarter.
Dairy prices decreased on average by –8.7% compared to the same prior-year quarter on the back of improved milk supply. The dairy market is still recovering from the sharp price decline caused by COVID-19 lockdowns in the third quarter 2019/20.
3 Source: Nielsen. The volume growth for the period September to November 2020 was: EMEA +0.4%, Americas –1.0%. Data is subject to adjustment to match Barry Callebaut’s reporting period. The underlying chocolate confectionery market growth according to Nielsen does not include e-commerce and only partially reflects the out-of-home and impulse consumption.
4 Source: Nielsen. The volume growth in Asia Pacific was –12.2% for the period September to November 2020. Data is subject to adjustment to match Barry Callebaut’s reporting period. The underlying chocolate confectionery market growth according to Nielsen does not include e-commerce and only partially reflects the out-of-home and impulse consumption.
5 Source: London terminal market prices for 2nd position, September to November 2020. Terminal market prices exclude Living Income Differential (LID) and country differentials.
Financial Calendar for Fiscal Year 2020/21
(September 1, 2020 to August 31, 2021)
|Half-Year Results 2020/21
||April 22, 2021
|9-Month Key Sales Figures 2020/21
||July 15, 2021
|Full-Year Results 2020/21
||November 10, 2021
|Annual General Meeting 2020/21
||December 8, 2021