Region EMEA – Strong start to the year
Sales volume in Region EMEA (Europe, Middle East and Africa) increased by +13.8% to 286,296 tonnes in the first three months under review. Organic volume growth was +12.6%, excluding the first-time consolidation of ECC as of September 2021. While the strong volume growth in the first quarter was achieved against a low comparison base, it clearly outpaced the underlying chocolate confectionery market (0.0%)4. Food Manufacturers volume further accelerated and achieved close to double-digit growth in the first three months of the fiscal year.
The acceleration was led by continued positive momentum in Eastern Europe, where outsourcing contracts are ramping up. The strong volume recovery of Gourmet & Specialties continued across the Region. Sales revenue in the Region amounted to CHF 921.5 million, up +19.4% in local currencies (+18.9% in CHF).
Region Americas – Sustained positive volume growth
In the first three months of fiscal year 2021/22, positive volume growth continued in Region Americas with an increase of +1.7% to 164,860 tonnes. This result, which is below the regional chocolate confectionery market (+5.4%)5, was achieved on the back of a strong comparison base, as the Group’s growth in the Region was more resilient throughout the COVID-19 pandemic. Food Manufacturers volume overall remained about stable against the high comparator. In Gourmet & Specialties, strong volume growth continued across the Region. Sales revenue amounted to CHF 521.1 million, up +9.0% in local currencies ( +10.5% in CHF).
Region Asia Pacific – Accelerating volume growth
In Region Asia Pacific growth momentum further accelerated by +15.9% to 39,506 tonnes, on the back of a low comparison base and in line with the underlying chocolate confectionery market (+18.8%)5. Food Manufacturers volume accelerated to the low teens, supported by key markets like India and Japan. Gourmet & Specialties volume continued its double-digit growth trajectory. Sales revenue amounted to CHF 132.7 million, up +23.6% in local currencies (+24.1% in CHF).
Global Cocoa – Return to positive growth in challenging market environment
On the back of the low prior-year comparator, sales volume in Global Cocoa was back to positive growth at +6.0% to 119,386 tonnes. Sales revenue increased by +7.2% in local currencies (+7.8% in CHF) to CHF 456.9 million. The COVID-19 ripple effects of an imbalanced cocoa market and supply chain bottlenecks continued to create a challenging environment.
Price developments of key raw materials
During the first three months of fiscal year 2021/22, terminal market6 prices for cocoa beans fluctuated between GBP 1,648 and GBP 1,888 per tonne and closed at GBP 1,648 per tonne on November 30, 2021. On average, cocoa bean prices increased by +2.1% versus the prior-year quarter. The global bean supply and demand forecast for 2021/22 has shifted from a surplus to a deficit, as a result of concerns over crop developments in Ghana and expectations of record high bean grindings.
Sugar prices in Europe increased on average by +28.8% during the period under review, mainly due to the poor crop and a historic low stock level. The world market price for sugar increased on average by +31.3% on the back of a substantially lower Brazilian crop, while demand remained strong. The increase was amplified by high energy prices and record high freight costs.
Dairy prices increased on average by +36.0% during the first three months of fiscal year 2021/22. Demand remained vibrant, but the primary driver for the price rally was a sharply reduced global milk supply as rising inflation is weighing on farmer profits.
4Source: Nielsen volume growth – excluding e-commerce – for the period September to October 2021. Data is subject to adjustment to match Barry Callebaut’s reporting period. Nielsen data only partially reflects the out-of-home and impulse consumption.
5Source: Nielsen volume growth – excluding e-commerce - for the period September to October 2021. Data is subject to adjustment to match Barry Callebaut’s reporting period. Nielsen data only partially reflects the out-of-home and impulse consumption.
6Source: London terminal market prices for 2nd position, September to November 2021. Terminal market prices exclude Living Income Differential (LID) and country differentials.
Financial Calendar for Fiscal Year 2021/22
(September 1, 2021 to August 31, 2022)