logo
Share SHARE
FONT-SIZE Plus   Neg

Barry Callebaut H1 Profit Declines; Backs Growth Forecast - Quick Facts

Barry Callebaut AG (BYCBF.PK), a Swiss manufacturer of cocoa and chocolate products, on Monday said its first-half net profit declined 18 percent to 121.8 million Swiss Francs from 148.6 million francs last year due to higher operating expenses as well as higher financing costs related to the bond placement in summer 2011. In local currencies, profit fell 11.3 percent.

Sales volume grew 6.7 percent to 699,058 tonnes and again outperformed the worldwide chocolate confectionery market, the company said. Sales revenue increased 3 percent to 2.48 billion francs from last year's 2.40 billion francs. Sales grew 10.4 percent in local currencies.

The company noted that all regions and product groups contributed to the volume growth, which rebounded strongly in the second quarter.

CEO Juergen Steinemann said, "After an anticipated slow start in Q1, we regained momentum in Q2, in all Regions and across all Product Groups. Once again, we outpaced the global chocolate market. Several major new partnership deals were signed, confirming an important part of our business model. In the last six months, we initiated selective investments in our future growth. This temporarily affected our bottom-line results."

Looking ahead, the company said it is confident of reaching mid-term financial targets, even though the economic environment in Western Europe and North America remains fragile.

The company's four-year growth targets for 2009/10-2012/13 include on average 6-8 percent volume growth and average EBIT growth in local currencies at least in line with volume growth.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Nestle SA's shares were gaining around 4 percent in Zurich trading after billionaire activist investor Daniel Loeb's hedge fund Third Point LLC bought a $3.5 billion stake in the Swiss food giant. The acquisition of about 1.25% stake in Nestle would put pressure on the company to find ways to accelerate growth. We believe this stock is well-positioned for at least 15% upside from current $23 levels. The stock featured on our premium product Short-Term Investor on April 25 at an opening price of $19.5, and on June 9 touched an intra-day high of $29.73, returning a gain of 52.4% to investors. It is now at an attractive price point again. Takata Corp., the Japanese manufacturer of faulty air bag inflators linked to the deaths of at least 16 people, has filed for bankruptcy protection in Tokyo and the US following billions of dollars in liabilities linked to a massive global recall. Takata also agreed to sell its global assets and operations to US auto parts maker Key Safety Systems, owned by China's Ningbo Joyson Electronic.
comments powered by Disqus
Follow RTT