Barry Callebaut reports profitable growth
By Bakers Journal
By Bakers Journal
November 10, 2011, Zurich – Barry Callebaut posted "solid and profitable" growth for the 2010/11 fiscal year, ended Aug. 31.
The company outpaced the global chocolate market with an increase in sales volume of 7.2 per cent, reaching 1,296,438 tonnes.
Barry Callebaut's Food Manufacturers Products group showed good growth driven by higher demand for specialty products and fillings. The Gourmet business group achieved strong growth, especially in Asia-Pacific and Europe, with the global brands Cacao Barry and Callebaut performing well above market growth.
Barry Callebaut's Global Sourcing & Cocoa group significantly increased its volume, driven by the strong demand for cocoa powder as well as sales of cocoa products to strategic customers.
"We saw another year where we delivered on our targets. We again outperformed the global chocolate market, both with our Food Manufacturing Products and our Gourmet business. This is a particularly great result in light of the recent crisis in Côte d'Ivoire," said Juergen Steinemann, CEO of Barry Callebaut.
During the company's fiscal year, cocoa prices moved sharply higher due to political conflict in Côte d'Ivoire. Prices hit new record levels on high volatility during the reporting year. After the crisis came to an end in early May, prices drifted downwards.
A larger-than-expected cocoa crop and a reduction in financial investors' long positions also guided prices lower.
Overall, consumer demand for chocolate is growing, averaging two to three per cent growth per annum in the long-term. Despite the recent bumper crop of 2010/11, Barry Callebaut sees significant challenges ahead in securing sufficient supplies of high quality, responsibly grown cocoa to meet future chocolate demand.
"We expect the global macroeconomic and financial environment to remain rather fragile and volatile. We assume the chocolate confectionery and gourmet markets will grow further next year, but at a lower rate of one to two per cent. Raw material prices will stay rather high and remain volatile," said Steinemann.
The company will intensify its efforts in direct cooperation with the farmer communities to increase cocoa yields and quality. Various initiatives such as Farmer Practices, Farmer Education and Farmer Health will also enable the company to scale up its certified volumes.