Region EMEA – Continued volume recovery
Sales volume in Region EMEA (Europe, Middle East and Africa) increased by +2.9% to 736,375 tonnes. Volume recovery accelerated in the third quarter against a low base and despite ongoing restrictions in major European markets. The underlying chocolate confectionery market grew +1.0%5. Food Manufacturers reported an accelerated volume recovery in the third quarter, achieving low single-digit volume growth in the first nine months of the fiscal year. The acceleration was supported by continued positive momentum in Eastern Europe, where outsourcing contracts signed during the COVID-19 pandemic are now ramping up. The newly signed outsourcing contract with Atlantic Stark underpins the strength of the pipeline. Despite the ongoing challenging environment, Gourmet & Specialties progressively recovered in the nine months under review, returning to positive high single-digit territory. Sales revenue in the Region amounted to CHF 2,310.4 million, up +5.9% in local currencies (+4.6% in CHF).
Region Americas – Accelerated volume momentum
In Region Americas momentum accelerated in the third quarter, leading to a volume increase of +9.4% to 452,280 tonnes for the first nine months of the fiscal year, well ahead of the regional chocolate confectionery market (+2.4%5). Food Manufacturers continued its growth trajectory, in particular with large corporate accounts in North America, showing double-digit volume growth. Barry Callebaut continues to expand and invest in the Region to serve customers’ needs and further exploit opportunities, exemplified by a recently signed significant outsourcing contract. Gourmet & Specialties volume growth accelerated strongly in the third quarter, bringing it back to the high-teens for the first nine months of fiscal year 2020/21. Sales revenues increased by +11.1% in local currencies (+2.2% in CHF) to CHF 1,343.7 million.
Region Asia Pacific – Healthy growth momentum continues
In Region Asia Pacific healthy growth continues with volume up +9.0% to 105,933 tonnes, significantly outpacing the regional chocolate confectionery market (–0.8%5). Food Manufacturers sustained its solid and broad based growth. Gourmet & Specialties volume accelerated in the third quarter across the Region, bringing growth back in the solid double-digit range for the period under review. Sales revenue amounted to CHF 336.0 million, up +13.6% in local currencies (+8.2% in CHF).
Global Cocoa – Volatile market environment
Against a low comparison base, Global Cocoa recorded positive sales growth in the third quarter, leading to a sales volume decline of –4.3% to 327,891 tonnes for the 9-month period under review. The market environment remains volatile with global cocoa supply and demand out of balance due to the COVID-19 pandemic, and, in particular, logistical challenges in the supply chain. Sales revenue amounted to CHF 1,362.0 million, up +6.0% in local currencies (–3.1% in CHF).
Price developments of key raw materials
During the first nine months of fiscal year 2020/21, terminal market6 prices for cocoa beans fluctuated between GBP 1,607 and GBP 1,869 per tonne and closed at GBP 1,632 per tonne on May 28, 2021. On average, cocoa bean prices decreased by –9.3% versus the prior-year period. The outlook for global bean supply and demand indicates a sizable surplus.
World sugar prices increased on average by +19.1% on the back of strong demand from China in combination with delayed exports from India and lower crop expectations in Brazil. Sugar prices in Europe remained on average stable (+0.2%) compared to the demand-related lower prices at the
beginning of the COVID-19 pandemic in the prior-year period.
Dairy prices continued to increase on the back of strong demand from Asia, weak European milk supply, and some supply chain constraints. However, on average prices in the period under review were still slightly lower compared to the same prior-year period (–1.0%).
5 Source: Nielsen. The volume growth for the period September 2020 to April/May 2021, 25 countries. 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.
6 Source: London terminal market prices for 2nd position, September 2020 to May 2021. 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)
|Full-Year Results 2020/21
||November 10, 2021
|Annual General Meeting 2020/21
||December 8, 2021