Region EMEA – Further growth acceleration
Sales volume of Barry Callebaut in Region EMEA (Europe, Middle East and Africa) increased by +5.3% to 732,278 tonnes, well above the regional chocolate confectionery market, which was basically flat (+0.2%)5. The further acceleration was supported by strong growth in Food Manufacturers in Western Europe, including the ramp-up for Burton’s Biscuit, and in Eastern Europe, with Inforum contributing to sales volume since February 2019. Gourmet maintained its healthy growth in the first 9 months of the fiscal year, while Beverages volumes remained, as anticipated, soft. Sales revenue increased by +4.7% in local currencies (+0.6% in CHF) to CHF 2,331.6 million.
Region Americas – Growth momentum continues
Healthy growth momentum continued to build in Region Americas with sales volumes up +6.0% to 424,216 tonnes, supported by both Food Manufacturers and Gourmet & Specialties, while the chocolate confectionery market grew by +0.2%5. Gourmet & Specialties continued to grow double-digit in South America and good momentum continued in North America. Sales revenue increased by +9.7% in local currencies (+11.0% in CHF) and amounted to CHF 1,372.8 million.
Region Asia Pacific – Accelerating growth momentum
Asia Pacific sales growth momentum further accelerated, resulting in volume growth for the first 9 months of +10.1% to 87,543 tonnes, ahead of the underlying market growth of +8.0%5. Growth was fueled by Food Manufacturers, mainly through regional accounts. Sales revenue grew +9.3% in local currencies (+10.0%) in CHF) to CHF 303.6 million.
Global Cocoa – Healthy growth
Sales volumes increased by +2.2% to 345,144 tonnes in the period under review. Sales revenue increased by +12.5% in local currencies (+8.8% in CHF) to CHF 1,472.4 million, mainly due to increased cocoa prices and the first-time adoption of IFRS 15.
Raw material price developments
During the first 9 months of fiscal year 2018/19 cocoa bean prices fluctuated in a range between GBP 1,500 and GBP 1,800 per tonne and closed at GBP 1,788 per tonne on May 31, 2019. On average, cocoa bean prices increased by +4.0% versus prior year. Going forward, global cocoa supply and demand are expected to remain balanced.
Sugar prices increased in Europe (+46.0% YTD), due to a disappointing 2018 crop. The world market prices for sugar increased by +3.9% during the first 9 months of this fiscal year, in the light of expectations of lower crop production in 2019/20.
During the first 9 months of fiscal year 2018/19, dairy prices increased (+25.2%) due to deteriorated production conditions and increased demand.
1 On average for the 4-year period 2015/16 to 2018/19: 4–6% volume growth and EBIT above volume growth in local currencies, barring any major unforeseen events.
2 Source: Nielsen chocolate confectionery sales in volume, August 2018 to April 2019 – 25 countries
3 The International Financial Reporting Standard 15 (IFRS 15) provides guidance on accounting for revenue from contracts with customers.
4 On average for the 3-year period 2019/20 to 2021/22: 4-6% volume growth and EBIT above volume growth in local currencies, barring any major unforeseen events.
5 Source: Nielsen chocolate confectionery sales in volume, August 2018 to April 2019 – 25 countries