Region EMEA – Third quarter impacted by COVID-19, significant outsourcing contract signed
Sales volume of Barry Callebaut in Region Europe, Middle East and Africa (EMEA) declined by –2.3%6 to 715,753 tonnes in the first nine months of fiscal year 2019/20. Excluding the first-time consolidation of Inforum as of February 2019, organic volume declined by –4.3% in the nine-month period under review. The full lockdown in all major European markets for the majority of the third quarter negatively impacted sales volume, which declined by –17.1% in the third quarter.
The out-of-home and impulse consumption was particularly impacted, as restaurants, hotels and most shops were closed. This was reflected in the nearly halved volumes of Gourmet & Specialties, as well as in the double-digit volume decline in Food Manufacturers.
The signing of a significant outsourcing contract in EEMEA amidst the COVID-19 pandemic in May 2020 is a strong signal of the resilience of Barry Callebaut’s underlying business model. The ramp-up of deliveries will start in the first quarter of 2020/21.
Sales revenue in the first nine months of fiscal year 2019/20 was about flat (–0.3%) in local currencies (–5.3% in CHF) and amounted to CHF 2,209.0 million.
Region Americas – Third quarter impacted by COVID-19
Sales volume of Barry Callebaut in Region Americas declined by –2.6%6 to 413,234 tonnes in the period under review. The impact of the COVID-19 pandemic was reflected in the –12.1% volume decline in the third quarter. Food Manufacturers declined in the third quarter in North America in the high single-digit range. This decline was mainly driven by customers serving the out-of-home channel. Gourmet, which depends to a large extent on out-of-home consumption, lost about a third of its volume due to the lockdowns. In South America, the Group saw its volume decline in the third quarter by a third, mostly driven by Brazil, which has been particularly impacted by COVID-19.
The Region’s sales revenues in the first nine months of fiscal year 2019/20 declined by –1.0% in local currencies (–4.2% in CHF) to CHF 1,314.5 million.
Region Asia Pacific – Solid growth, continued recovery in China
Sales volume of Barry Callebaut in Region Asia Pacific continued to grow at a double-digit pace (+11.1%6) in the first nine months of fiscal year 2019/20 and amounted to 97,228 tonnes.
The COVID-19 pandemic and the corresponding government measures impacted the third quarter, resulting in an overall flat volume development (+0.4%) in the third quarter. The Gourmet business was in particular affected. Nevertheless, the speedy recovery of demand in key markets such as China and Japan cushioned the impact of the lockdowns, limiting the Gourmet volume decline to about one-fifth versus the prior-year quarterly volume. Food Manufacturers showed good resilience and grew mid-single digit in the third quarter. With the acquisition of GKC Foods, closed in early July 2020, Barry Callebaut has established a local presence and manufacturing capacity in the growing and still largely captive Australian market.
Sales revenue in the first nine months of fiscal year 2019/20 increased by +4.4% in local currencies (+2.3% in CHF) to CHF 310.5 million.
6 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. According to Nielsen, the volume growth for the period September 2019 to April 2020 was: EMEA +1.1%, Americas -2.5%, Asia-Pacific +0.1%.