Barry Callebaut income up 66% in year
November 06, 2008
by FoodBusinessNews.net Staff
ZURICH, SWITZERLAND — For the fiscal year ended Aug. 31, Barry Callebaut AG posted net profit of 205.5 million Swiss francs, ($174.7 million) up 66% from 124.1 million Swiss francs during the previous year.
Sales increased 17% to 4,815.4 million Swiss francs ($4,092.1 million) compared with 4,106.8 million Swiss francs during the previous year. The increase in revenue was mostly due to higher volumes and also higher raw material prices.
"I am satisfied with the sales and profit growth generated in the past fiscal year, which was in line with our expectations," said Patrick De Maeseneire, chief executive officer. "Thanks to our robust business model and our ability to adapt quickly to changing market conditions, we were able to offset record-high raw material costs and accelerate our operating profit growth in the second semester. Additionally, we continued to grow more than three times as fast as the global chocolate market. These achievements, especially in the face of a challenging market environment, underline the effectiveness of our growth strategy."
In the Americas region, operating profit was up 18.4% to 79.5 million Swiss francs despite unfavorable exchange rate developments. Sales revenue increased 23.1% to 931.6 million Swiss francs as a result of higher volumes. Volumes were driven by deliveries to The Hershey Co.
"The robustness of Barry Callebaut’s business model, the proven success of our growth strategy and our position as the global market leader will enable us to perform in line with our growth targets in the current fiscal year," Mr. De Maeseneire said. "Additionally, chocolate is a defensive industry and consumption has proven resilient in previous economic downturns."
In other news, Barry Callebaut announced it is proposing James Donald, former president and chief executive officer of Starbucks Corp., be elected as a member of the board of directors at the next annual meeting.